Legislature(2015 - 2016)SENATE FINANCE 532

03/18/2016 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 1 REGULATION OF SMOKING TELECONFERENCED
Heard & Held
+= SB 124 EXTEND SUNSET ON AK COMMISSION ON AGING TELECONFERENCED
Moved SB 124 Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 18, 2016                                                                                            
                         9:41 a.m.                                                                                              
                                                                                                                                
9:41:14 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 9:41 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Peter Micciche, Vice-Chair                                                                                              
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Click Bishop                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Kelly  Cunningham,  Fiscal   Note  Coordinator,  Legislative                                                                    
Finance  Division;   Sana  Efird,   Assistant  Commissioner,                                                                    
Department of  Health and Social Services;  Denise Daniello,                                                                    
Executive Director, Alaska Commission  on Aging; Erin Shine,                                                                    
Staff,  Senator   Anna  MacKinnon;  Alice   Edwards,  Deputy                                                                    
Commissioner, Department of Environmental Conservation.                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Duane Mayes,  Director, Division of Senior  and Disabilities                                                                    
Services,   Department  of   Health  and   Social  Services,                                                                    
Anchorage.                                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 1      REGULATION OF SMOKING                                                                                                 
                                                                                                                                
          SB 1 was HEARD and HELD in committee for further                                                                      
          consideration.                                                                                                        
                                                                                                                                
SB 124    EXTEND SUNSET ON AK COMMISSION ON AGING                                                                               
          SB  124 was  REPORTED  out of  committee with  "no                                                                    
          recommendation" and with a  new fiscal impact note                                                                    
          from   the  Department   of   Health  and   Social                                                                    
          Services.                                                                                                             
                                                                                                                                
SENATE BILL NO. 124                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the Alaska                                                                       
     Commission on Aging; and providing for an effective                                                                        
     date."                                                                                                                     
                                                                                                                                
Co-Chair MacKinnon discussed housekeeping.                                                                                      
                                                                                                                                
9:42:34 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche read  from Page 2 of  the amended fiscal                                                                    
note:                                                                                                                           
                                                                                                                                
     The  amended fiscal  note  reflects  a staff  reduction                                                                    
     from  four  full-time   positions  to  three  full-time                                                                    
     positions  in   FY2017  and  two   full-time  positions                                                                    
     beginning in FY2018 going forward.                                                                                         
                                                                                                                                
Vice-Chair Micciche  added that  the reduction would  be $93                                                                    
thousand in personal services.                                                                                                  
                                                                                                                                
9:44:26 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:45:49 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:45:58 AM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon  remarked   that  there   had  been   a                                                                    
discussion  in the  previous meeting  regarding the  4 staff                                                                    
member support  for the  Board of  the Alaska  Commission on                                                                    
Aging. She  noted the  reduction in  staff reflected  on the                                                                    
amended  fiscal  notes.    She  requested  that  legislative                                                                    
finance walk through the fund allocations.                                                                                      
                                                                                                                                
KELLY  CUNNINGHAM,  FISCAL   NOTE  COORDINATOR,  LEGISLATIVE                                                                    
FINANCE DIVISION,  informed the committee that  one position                                                                    
would be cut  in FY2017, which would result in  a savings of                                                                    
$93.3  thousand;  $36  thousand   in  General  Funds,  $57.3                                                                    
thousand  in interagency  receipts. She  furthered that  the                                                                    
second  year of  the reductions,  2018, the  second position                                                                    
would be removed.                                                                                                               
                                                                                                                                
9:47:51 AM                                                                                                                    
9:43:45 AM                                                                                                                      
                                                                                                                                
Co-Chair   MacKinnon  queried   whether   the  fiscal   note                                                                    
information that the  department had sent to  her office for                                                                    
FY18 going forward, was reflected in the note.                                                                                  
                                                                                                                                
DUANE MAYES,  DIRECTOR, DIVISION OF SENIOR  AND DISABILITIES                                                                    
SERVICES,   DEPARTMENT  OF   HEALTH  AND   SOCIAL  SERVICES,                                                                    
ANCHORAGE  (via teleconference),  responded that  the fiscal                                                                    
note that  the department proposed  would had reduced  the 2                                                                    
positions in FY18.                                                                                                              
                                                                                                                                
9:47:56 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon stated  that the  numbers reflected  for                                                                    
FY18 through FY22, had been  provided by the department, and                                                                    
that the  only change  that the committee  had made  was the                                                                    
FY17 reduction.                                                                                                                 
                                                                                                                                
Mr. Mayes agreed.                                                                                                               
                                                                                                                                
9:48:24 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  reminded  Mr.  Mayes  that  interagency                                                                    
receipts  were also  General Fund  spending.  She wanted  to                                                                    
ensure that the two positions  had not been moved to another                                                                    
division or department, but had been cut completely.                                                                            
                                                                                                                                
Mr. Mayes replied  that the positions were  not being moved,                                                                    
but were being eliminated.                                                                                                      
                                                                                                                                
9:49:26 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  understood that the positions  would not                                                                    
be moved to the State Unit on Aging.                                                                                            
                                                                                                                                
Mr.  Mayes  replied  that  the   State  Unit  on  Aging  was                                                                    
delegated to the Division of  Senior Disability Services. He                                                                    
explained that as  a requirement of the  Older American Act,                                                                    
the department  had to gather input  from seniors throughout                                                                    
the  state, and  to  have an  advisory  council; the  Alaska                                                                    
Commission on Aging was the advisory council.                                                                                   
                                                                                                                                
9:50:16 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  solicited additional  information  form                                                                    
Mr. Mayes.                                                                                                                      
                                                                                                                                
Mr. Mayes replied that he did not.                                                                                              
                                                                                                                                
9:51:47 AM                                                                                                                    
                                                                                                                                
SANA  EFIRD, ASSISTANT  COMMISSIONER,  DEPARTMENT OF  HEALTH                                                                    
AND   SOCIAL  SERVICES,   commented   that  the   department                                                                    
understood the  fiscal climate of  the state. She  said that                                                                    
the governor's  FY17 budget for  the commission  had already                                                                    
been established,  which was why  they had  recommended that                                                                    
the reductions begin in FY18.                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon relayed  that  the committee  understood                                                                    
that the cuts would impact  the work that the commission was                                                                    
under schedule to complete.                                                                                                     
                                                                                                                                
9:53:21 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy warned  that the cuts would  occur over all                                                                    
areas  of  government.  He  said  that  many  long-standing,                                                                    
effective programs would be scrutinized.  He thought that it                                                                    
was appropriate to reduce the fiscal note.                                                                                      
                                                                                                                                
                                                                                                                                
Co-Chair  MacKinnon hoped  that all  boards and  commissions                                                                    
could be fairly evaluated in the future.                                                                                        
                                                                                                                                
9:53:50 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:55:51 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Micciche MOVED to REPORT  SB 124 out of committee                                                                    
with  individual  recommendations  and the  attached  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB   124   was   REPORTED   out  of   committee   with   "no                                                                    
recommendation" and with  a new fiscal impact  note from the                                                                    
Department of Health and Social Services.                                                                                       
                                                                                                                                
9:56:10 AM                                                                                                                    
AT EASE                                                                                                                         
9:57:28 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 1                                                                                                             
                                                                                                                                
     "An   Act  prohibiting   smoking  in   certain  places;                                                                    
     relating to  education on the smoking  prohibition; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:57:30 AM                                                                                                                    
                                                                                                                                
MOVED to ADOPT the proposed committee substitute for SSSB
1(FIN), Work Draft 29-LA0003\V (Wallace/Martin, 3/17/16).                                                                       
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
9:58:19 AM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
1:39:10 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:39:51 PM                                                                                                                    
                                                                                                                                
ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, walked through                                                                       
the changes reflected in the committee substitute:                                                                              
                                                                                                                                
     Page 1, line 5:                                                                                                            
     Article 4. Prohibition of Smoking in Certain Places.                                                                     
                                                                                                                              
     Page 2, line 13:                                                                                                           
     (7) in  a building or residence  that is the site  of a                                                                
     business at which  the care of adults is  provided on a                                                                    
     fee-for-service basis;                                                                                                   
                                                                                                                                
     Page 2, lines 22 through 24:                                                                                               
     (3) at  a place of  employment or health  care facility                                                                    
     that has declared the entire  campus or outside grounds                                                                    
     or property to be smoke-free;                                                                                              
                                                                                                                                
     Page 4, line 9:                                                                                                            
     Notwithstanding  (b) of  this  section, the  department                                                                    
     shall  adopt  regulations   authorizing  smoking  in  a                                                                    
     stand-alone shelter.                                                                                                       
                                                                                                                                
     Page 4, line 20:                                                                                                           
     (1) reads "Smoking Prohibited by Law--Fine $50";                                                                           
     Page 4, line 22:                                                                                                           
     (3)includes  the words  "No  Puffin"  with a  pictorial                                                                    
     representation  of a  Horned  Puffin  or Tufted  Puffin                                                                    
     holding a  burning cigarette enclosed  in a  red circle                                                                    
     crossed with a red bar.                                                                                                    
                                                                                                                                
     Page 4, line 28:                                                                                                           
     Entrance Prohibited by Law--Fine $50"                                                                                      
                                                                                                                                
     Page 5, lines 7 through 15:                                                                                                
     Sec. 18.35.316. Powers and  duties of the commissioner.                                                                  
     (a) The commissioner shall                                                                                                 
      (1)  administer and  enforce  the  requirements of  AS                                                                  
     18.35.301 - 18.35.399;                                                                                                   
     (2)  adopt regulations  under AS  44.62 (Administrative                                                                  
     Procedure Act) necessary to carry  out the duties under                                                                    
     this section.                                                                                                              
     (b)   In  addition   to   other   powers  granted   the                                                                    
     commissioner  under  AS   18.35.301  -  18.35.399,  the                                                                  
     commissioner  may   delegate  to  another   agency  the                                                                    
     authority  to   implement  and  enforce  one   or  more                                                                    
     provisions of AS 18.35.301 - 18.35.399.                                                                                  
                                                                                                                                
     Page 6, lines 24 through 25:                                                                                               
     A  person  who  violates AS  18.35.301,  18.35.311,  or                                                                  
     18.35.326 [AS 18.35.300 OR  18.35.305] and against whom                                                                  
     the  commissioner has  filed  a  civil complaint  under                                                                    
     this  section is  punishable by  a civil  fine of  [NOT                                                                    
     LESS THAN $10 NOR MORE THAN] $50.                                                                                          
                                                                                                                                
     Page 7, lines 17 through 19:                                                                                               
     A   person  who   violates  AS   18.35.301,  18.35.306,                                                                  
     18.35.311,  or 18.35.326  [AS 18.35.300,  18.35.305, OR                                                                  
     18.35.330] is  guilty of a  violation as defined  in AS                                                                    
     11.81.900(b)  and upon  conviction is  punishable by  a                                                                    
     fine of [NOT LESS THAN                                                                                                     
     18  $10  NOR MORE  THAN]  $50  for  a violation  of  AS                                                                  
     18.35.301,  18.35.311, or  18.35.326  [AS 18.35.300  OR                                                                  
     18.35.305] and  by a  fine of not  less than  $50 [$20]                                                                  
     nor more than $300 for  a violation of AS 18.35.306 [AS                                                                  
     18.35.330].                                                                                                                
                                                                                                                                
Ms. Shine said that the rest of the changes were either                                                                         
conforming or technical.                                                                                                        
                                                                                                                                
                                                                                                                                
1:44:10 PM                                                                                                                    
Vice-Chair  Micciche   MOVED  to  ADOPT  Amendment   1,  29-                                                                    
LS0003\V.1, Martin, 3/18/16(copy on file):                                                                                      
                                                                                                                                
     Page 4, lines 7-16:                                                                                                        
          Delete all material and insert:                                                                                       
               (g) Nothing in this section prohibits                                                                            
               smoking                                                                                                          
                    (1) at a private residence, except a                                                                        
                    private residence described in (b) of                                                                       
                    this section; or                                                                                            
                    (2) in a stand-alone shelter in the                                                                         
                    sand-alone shelter meets the following                                                                      
                    requirements:                                                                                               
                         (A) food or drink may not be sold                                                                      
                         in the stand-alone shelter;                                                                            
                         (B) at least 50 percent of one                                                                         
                         side of the shelter is completely                                                                      
                         open to the outside; and                                                                               
                         (C) the stand-along shelter meets                                                                      
                         the minimum distance requirements                                                                      
                         in (c) of this section."                                                                               
                                                                                                                                
     Page 5, line 8                                                                                                             
          Delete "shall"                                                                                                        
                                                                                                                                
     Page 5, line 11, following "(1)":                                                                                          
          Insert "shall"                                                                                                        
                                                                                                                                
     Page 5, line 11, following "(2)":                                                                                          
          Insert "may"                                                                                                          
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
Ms. Shine  explained that the  amendment had  been generated                                                                    
by  a  conversation  with the  Department  of  Environmental                                                                    
Conservation. She said  that all of the language  on Page 4,                                                                    
lines  7 through  16, would  be deleted,  and the  amendment                                                                    
language would  be inserted. She talked  through the wordage                                                                    
changes on Page 5.                                                                                                              
                                                                                                                                
1:46:07 PM                                                                                                                    
                                                                                                                                
ALICE   EDWARDS,   DEPUTY    COMMISSIONER,   DEPARTMENT   OF                                                                    
ENVIRONMENTAL  CONSERVATION,  explained that  under  current                                                                    
statute,  there were  no specific  regulations for  smoking.                                                                    
She explained  that the amendment would  provide the ability                                                                    
to  write regulations  if necessary,  but would  not require                                                                    
the department to do so.                                                                                                        
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
OBJECTION, Amendment 1 was ADOPTED.                                                                                             
                                                                                                                                
1:47:09 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche   MOVED  to  ADOPT  Amendment   2,  29-                                                                    
LS0003\X.1, Martin, 3/17/16, (copy on file):                                                                                    
                                                                                                                                
     Page 5, lines 23-25:                                                                                                       
          Delete all material and insert:                                                                                       
          "(b) The commissioner shall consult with the                                                                          
         Department of Health and Social Services                                                                               
               (1)  to  achieve   compliance  by  employers,                                                                    
               property  owners,   property  operators,  and                                                                    
               other   members  of   the  public   with  the                                                                    
               requirements of AS 18.35.301-18.35.399;                                                                          
               (2) to  provide the  program of  education as                                                                    
               required  under  (a)  of  this  section;  the                                                                    
               program  of  education  may  be  provided  in                                                                    
               combination  with  the comprehensive  smoking                                                                    
               education,   tobacco   use  prevention,   and                                                                    
               tobacco  control  program established  in  AS                                                                    
               44.29.020(a)(14)."                                                                                               
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
1:47:38 PM                                                                                                                    
                                                                                                                                
Ms. Shine noted  that the amendment had been  drafted to the                                                                    
previous "X"  version of  the bill,  but that  the amendment                                                                    
language  lined   up  with  the   current  version   of  the                                                                    
legislation.   She   explained   that  the   Department   of                                                                    
Environmental  Conservation  and  Department of  Health  and                                                                    
Social Services  would work  collaboratively to  realize the                                                                    
intent of the legislation.                                                                                                      
                                                                                                                                
1:48:21 PM                                                                                                                    
                                                                                                                                
Ms.  Edwards   added  that  the  department   supported  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
1:48:37 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon wondered  whether the  sponsor supported                                                                    
the amendment.                                                                                                                  
                                                                                                                                
Vice-Chair Micciche replied in the affirmative.                                                                                 
                                                                                                                                
1:49:45 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  WITHDREW  her OBJECTION.  She  directed                                                                    
legislative legal  to make  conforming changes.  There being                                                                    
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
Vice-Chair  Micciche revealed  that there  was a  donor that                                                                    
would cover the cost of the  sign, but there was an issue of                                                                    
receipt authority. He felt that  the committee could wait to                                                                    
pass the legislation until the fiscal notes were finalized.                                                                     
                                                                                                                                
1:50:51 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  shared that the current  notes reflected                                                                    
the cost  for signage. She  said that the  receipt authority                                                                    
issue was being worked out with legislative legal.                                                                              
                                                                                                                                
SB  1   was  HEARD  and   HELD  in  committee   for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
1:52:46 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 1:52 p.m.                                                                                          

Document Name Date/Time Subjects
SB 1 CSSB 1 work draft Version V.pdf SFIN 3/18/2016 9:00:00 AM
SB 1
SB 1 Amendment Packet.pdf SFIN 3/18/2016 9:00:00 AM
SB 1