Legislature(2023 - 2024)SENATE FINANCE 532

04/19/2023 01:30 PM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ SB 53 FIVE-YEAR INVOLUNTARY COMMITMENTS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
<Time Limit May Be Set>
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 39 APPROP: OPERATING BUDGET/LOANS/FUND; SUPP TELECONFERENCED
Heard & Held
+= HB 41 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+= SB 22 PROCLAIM JUNETEENTH DAY A HOLIDAY TELECONFERENCED
<Bill Hearing Canceled>
+= SB 57 ADULT HOME CARE; MED ASSISTANCE TELECONFERENCED
<Bill Hearing Canceled>
+= SB 107 PERMANENT FUND DIVIDEND; POMV SPLIT TELECONFERENCED
Moved CSSB 107(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 19, 2023                                                                                            
                         1:32 p.m.                                                                                              
                                                                                                                                
1:32:32 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 1:32 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator David Wilson                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Pete Ecklund,  Staff, Senator Bert Stedman;  Alexei Painter,                                                                    
Director,  Legislative Finance  Division; Ken  Alper, Staff,                                                                    
Senator  Donny Olson;  Senator  Matt  Claman, Sponsor;  Emma                                                                    
Potter,  Staff, Senator  Matt Claman;  Angela Harris,  Self,                                                                    
Juneau; Angie Kemp,  Director, Criminal Division, Department                                                                    
of  Law; Dayna  Mackey, Budget  Analyst, Department  of Law;                                                                    
Matt  Davidson,  Special   Assistant  to  the  Commissioner,                                                                    
Department  of  Family   and  Community  Services;  Samantha                                                                    
Cherot,  Director,  Alaska  Public  Defender  Agency;  James                                                                    
Stinson, Director, Office of  Public Advocacy, Department of                                                                    
Administration; Mark  Regan, Legal Director,  Disability Law                                                                    
Center of Alaska.                                                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 53     FIVE-YEAR INVOLUNTARY COMMITMENTS                                                                                     
                                                                                                                                
          SB 53 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 107    PERMANENT FUND DIVIDEND; POMV SPLIT                                                                                   
                                                                                                                                
          CSSB 107(FIN)  was REPORTED out of  committee with                                                                    
          three  "no   recommendation"  recommendations  and                                                                    
          with two  "do pass"  recommendations and  with one                                                                    
          "amend" recommendation, and  one new fiscal impact                                                                    
          note from the Department of Revenue.                                                                                  
                                                                                                                                
CSHB 39(FIN) am(brf sup maj fld)(efd fld)                                                                                       
          APPROP: OPERATING BUDGET/LOANS/FUND; SUPP                                                                             
                                                                                                                                
          CSHB 39(FIN) was HEARD and HELD in committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
CSHB 41(FIN) am                                                                                                                 
          APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          CSHB 41(FIN) was HEARD and HELD in committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
Co-Chair Stedman  reviewed the  agenda. He relayed  that the                                                                    
committee  would adopt  a Committee  Substitute (CS)  for HB
39, the  operating budget.  The committee  would move  on to                                                                    
the mental  health budget  and adopt a  CS. The  director of                                                                    
the  Legislative Finance  Division  (LFD)  would provide  an                                                                    
update  of the  fiscal picture,  after which  Co-Chair Olson                                                                    
would take the gavel and consider legislation.                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 39(FIN) am(brf sup maj fld)(efd fld)                                                                    
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;   capitalizing   funds;   repealing                                                                    
     appropriations;    amending   appropriations;    making                                                                    
     reappropriations;      and     making      supplemental                                                                    
     appropriations."                                                                                                           
                                                                                                                                
1:33:46 PM                                                                                                                    
                                                                                                                                
Senator   Merrick   MOVED   to  ADOPT   proposed   committee                                                                    
substitute for CSHB 39 (FIN),  Work Draft 33-GH1347\R (Marx,                                                                    
4/17/23).                                                                                                                       
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
1:34:23 PM                                                                                                                    
                                                                                                                                
PETE  ECKLUND, STAFF,  SENATOR BERT  STEDMAN, discussed  the                                                                    
proposed  CS. He  read  from a  document  called Report   A                                                                     
(copy on file)  and highlighted Column 4, "SCS  1". He noted                                                                    
that Report A showed Unrestricted  General Funds (UGF) for a                                                                    
total of  $4.257 billion including numbers  and language for                                                                    
agency  operations, and  another $401  million of  statewide                                                                    
items  for  a total  of  $4.65  billion UGF.  He  referenced                                                                    
Report B (copy on file),  which showed all funds for numbers                                                                    
and language.  He highlighted that  Column 4 showed  "SCS 1"                                                                    
and  indicated that  there  was just  over  $9.8 billion  in                                                                    
agency  operations, and  another $584  million in  statewide                                                                    
operations for a total of $10.44 billion in all funds.                                                                          
                                                                                                                                
Mr. Ecklund  addressed a document entitled  Report  C  (copy                                                                    
on  file)  which  showed supplemental  items.  The  UGF  and                                                                    
operating  budget  supplementals  combined for  a  total  of                                                                    
$102.79  million.   He  noted  that  there   would  also  be                                                                    
supplemental items in the capital budget.                                                                                       
                                                                                                                                
Mr.  Ecklund  noted  that there  would  be  many  additional                                                                    
reports  available on  the LFD  website after  the committee                                                                    
meeting.                                                                                                                        
                                                                                                                                
Mr. Ecklund referenced a document  that outlined the changes                                                                    
from the  governor's introduced operating budget  to Version                                                                    
R of  HB 39, entitled "OPERATING  BUDGET DIFFERENCES BETWEEN                                                                    
THE GOVERNOR'S ORIGINAL OPERATING  BUDGET AND THIS COMMITTEE                                                                    
SUBSTITUTE" (copy on file).                                                                                                     
                                                                                                                                
1:37:12 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:37:50 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Mr. Ecklund  addressed changes  to the  bill outined  in the                                                                    
document:                                                                                                                       
                                                                                                                                
     OPERATING BUDGET DIFFERENCES BETWEEN THE GOVERNOR'S                                                                        
     ORIGINAL   OPERATING   BUDGET    AND   THIS   COMMITTEE                                                                    
     SUBSTITUTE                                                                                                                 
    SB40 (VERSION A) TO SENATE CS FOR HB39 (VERSION R)                                                                          
                                                                                                                                
     SUPPLEMENTAL NUMBERS SECTION                                                                                               
     1. Sections 7-12 incorporated all of the Governor's                                                                        
     numbers section supplemental requests except for the                                                                       
     following.                                                                                                                 
                                                                                                                                
   • Replaced $44.9 of UGF with Higher Ed money for the                                                                       
     WWAMI  program (Washington,  Wyoming, Alaska,  Montana,                                                                    
     Idaho)                                                                                                                     
                                                                                                                                
   • Replaced $904.2 GF/Program Receipts in the Department                                                                    
     of  Public Safety's  numbers  section  with a  language                                                                    
     section that appropriates  funding for criminal justice                                                                    
     information  system updates  and improvements  for FY23                                                                    
     and FY24.                                                                                                                  
                                                                                                                                
   • $117.0 UGF was added to the legislature's budget to                                                                      
     fund  a housing  stipend increase,  from $30  to $37.50                                                                    
     per day, for out-of-town legislative staff.                                                                                
                                                                                                                                
   • $200.0 UGF for an Alaska Family Justice Center Model                                                                     
     Study in the FY23 budget  was removed and replaced with                                                                    
     a multi-year language section (Sec  20(b)) for FY23 and                                                                    
    FY24, to allow for the completion of this project.                                                                          
                                                                                                                                
Mr.  Ecklund  shared  that  there   had  been  quite  a  few                                                                    
supplemental language sections and  noted that the executive                                                                    
branch had recently reviewed  the supplmentals. He explained                                                                    
that  all the  supplmentals  were incorporated  into the  CS                                                                    
with the  exception of a  Clean Air Fund  appropriation that                                                                    
he  would  address  later.  He   continued  to  address  the                                                                    
document:                                                                                                                       
                                                                                                                                
     The  Senate CS  incorporates a  number of  SUPPLEMENTAL                                                                    
    APPROPRIATIONS in the following language sections.                                                                          
                                                                                                                                
     2.  Sec  13  extends  the lapse  date  for  the  Alaska                                                                    
     Housing  Finance  Corporation's  federal  receipts  for                                                                    
     various   housing  programs.   This  is   a  Governor's                                                                    
     request.                                                                                                                   
                                                                                                                                
     3.  Sec   16  extends   the  lapse  date   for  DCCED's                                                                    
     reinsurance appropriation.  A total  of $55  million of                                                                    
     UGF was appropriated in FY18  and this language extends                                                                    
     the appropriation  through FY28. This was  requested by                                                                    
     the Governor.                                                                                                              
                                                                                                                                
     4.  Sec. 15  is  a NEW  SECTION  that appropriates  the                                                                    
     balance  of the  Abandoned Motor  Vehicle Fund  on June                                                                    
     30,  2023 to  DOA to  reimburse municipalities  for the                                                                    
     cost of removing abandoned vehicles for FY23 and FY24.                                                                     
                                                                                                                                
     5.  Sec.   17.  Department   of  Education   and  Early                                                                    
     Development.  There are  several supplemental  language                                                                    
     sections  for the  Department  of  Education and  Early                                                                    
     Development.                                                                                                               
          o The following were requested by the Governor                                                                        
          o  Sec 17(d)  extends the  lapse date  for federal                                                                    
          receipts in the Department  of Education and Early                                                                    
          Development to June 30, 2025.                                                                                         
          o Sec  17(e) allows  DEED to accept  any available                                                                    
          FY23 federal  funds and pass that  funding through                                                                    
          to other educational entities.                                                                                        
                                                                                                                                
     o The following were added or revised in the Senate                                                                        
     CS:                                                                                                                        
          o   Sec  17(f)   corrects  the   Governor's  lapse                                                                    
          extension language for the  proceeds from the sale                                                                    
          of  state-owned Mt.  Edgecumbe  High School  land.                                                                    
          The proceeds  from the sale will  be available for                                                                    
          Mt.  Edgecumbe   High  School's   maintenance  and                                                                    
          operations for FY23-FY25.                                                                                             
                                                                                                                                
1:41:48 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:48:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Stedman relayed  that  there had  been a  printing                                                                    
malfunction  and members  were missing  part of  the written                                                                    
explanation.  He  asked  Mr.  Ecklund  to  highlight  larger                                                                    
issues on each page and pause for discussion.                                                                                   
                                                                                                                                
Mr. Ecklund continued to address the summary of differences                                                                     
on the top of page 2:                                                                                                           
                                                                                                                                
     o The following were added or revised in the Senate                                                                        
     CS:                                                                                                                        
          o   Sec  17(f)   corrects  the   Governor's  lapse                                                                    
          extension language for the  proceeds from the sale                                                                    
          of  state-owned Mt.  Edgecumbe  High School  land.                                                                    
          The proceeds  from the sale will  be available for                                                                    
          Mt.  Edgecumbe   High  School's   maintenance  and                                                                    
          operations for FY23-FY25.                                                                                             
                                                                                                                                
Co-Chair Stedman asked Mr. Ecklund to address item 9.                                                                           
                                                                                                                                
Mr. Ecklund spoke to item 9:                                                                                                    
                                                                                                                                
     9. Sec. 21. SUPPLEMENTAL FUND CAPITALIZATION                                                                               
          o Sec. 21a appropriates up  to $10 million of SDPR                                                                    
          to  the  Alaska Gasline  Development  Corporation.                                                                    
          This subsection clarifies  the FY23 effective date                                                                    
          that was requested by the Governor.                                                                                   
                                                                                                                                
1:50:49 PM                                                                                                                    
                                                                                                                                
Mr. Ecklund addressed page 3 of the summary of changes                                                                          
document:                                                                                                                       
                                                                                                                                
     10.   Sec.  22.   Extends  the   lapse  date   for  the                                                                    
     Redistricting  Board  operations  through  the  end  of                                                                    
     FY24. This was a legislative addition.                                                                                     
                                                                                                                                
     11.  Sec.  23  adds  SUPPLEMENTAL  SALARY  AND  BENEFIT                                                                    
     ADJUSTMENTS language to  ensure that salary adjustments                                                                    
     resulting  from  bargaining  unit agreements  that  are                                                                    
     included  in  the   supplemental  numbers  section  are                                                                    
     funded. This is a Governor's request.                                                                                      
                                                                                                                                
     12.   Sec.  24.   Approves  the   Governor's  requested                                                                    
     SUPPLEMENTAL  RATIFICATIONS   OF  OVEREXPENDITURES  for                                                                    
     several departments.                                                                                                       
                                                                                                                                
Mr. Ecklund discussed FY 24 Language Changes as listed on                                                                       
the document:                                                                                                                   
                                                                                                                                
     FY24 LANGUAGE CHANGES                                                                                                      
                                                                                                                                
     13. Sec.  27 is a  legislative addition of up  to $75.0                                                                    
     UGF  to   the  Alaska  Court  System's   Commission  on                                                                    
     Judicial Conduct  for special council costs  related to                                                                    
     unanticipated   investigations.   This   language   was                                                                    
     recommended by the subcommittee.                                                                                           
                                                                                                                                
     14.  DELETED   SECTION:  The  AIDEA   Dividend  section                                                                    
     appropriating  $17,904,000 from  AIDEA  to the  general                                                                    
     fund  was deleted.  The Senate  Finance Committee  will                                                                    
     work with AIDEA to  determine an appropriate amount for                                                                    
     the AIDEA Dividend.                                                                                                        
                                                                                                                                
     15.  Sec. 29.  ALASKA PERMANENT  FUND. The  legislature                                                                    
     made   the  following   changes  from   the  Governor's                                                                    
     requested Permanent Fund language.                                                                                         
          o   To   align    with   statute,   subsection   c                                                                    
          appropriates  the entire  Percent of  Market Value                                                                    
          draw,  totaling  $3,526,087,852,  to  the  general                                                                    
          fund.                                                                                                                 
                                                                                                                                
     (The Governor's language  had appropriated funding from                                                                    
     the Earnings Reserve Account as follows:                                                                                   
                                                                                                                                
          •  $2.47 billion  to the  dividend fund  to pay  a                                                                  
             full statutory dividend, and                                                                                       
                                                                                                                                
          •  The remaining balance,  estimated to  be $1.055                                                                  
             billion, was appropriated to the general fund.)                                                                    
                                                                                                                                
     o  The  Senate  CS  deletes the  appropriation  to  the                                                                    
     dividend  fund to  pay for  a  dividend. The  permanent                                                                    
     fund  dividend discussion  will need  to be  decided by                                                                    
     the full Finance Committee.                                                                                                
                                                                                                                                
     o The  Senate CS  revises the Permanent  Fund inflation                                                                    
     proofing  appropriation (subsection  e) by  capping the                                                                    
     amount  appropriated for  inflation proofing  at $1.413                                                                    
     billion.  The  Governor's  language was  an  open-ended                                                                    
     appropriation.                                                                                                             
                                                                                                                                
     16. Sec.  30 incorporated  the Governor's  amendment to                                                                    
     appropriate  funding  from  the  ALASKA  TECHNICAL  AND                                                                    
     VOCATIONAL   EDUCATION  PROGRAM   ACCOUNT  to   various                                                                    
     departments  as  prescribed  by  statute.  Because  the                                                                    
     amount   available   varies  annually,   the   Governor                                                                    
     submitted  an amendment  replacing the  funding in  the                                                                    
     numbers section of the budget with this language.                                                                          
                                                                                                                                
1:54:17 PM                                                                                                                    
                                                                                                                                
Mr. Ecklund continued to address the document:                                                                                  
                                                                                                                                
     17.  Sec. 31  and Sec  55. As  occurred in  last year's                                                                    
     operating budget bill, the  legislature added a section                                                                    
     to  clarify that  funding included  in  the budget  for                                                                    
     BONUSES FOR  CERTAIN EMPLOYEES OF THE  EXECUTIVE BRANCH                                                                    
     is contingent upon                                                                                                         
          o the state and  the applicable bargaining unit of                                                                    
          the employee  entering into a letter  of agreement                                                                    
          for the bonus AND                                                                                                     
          o  the Department  of  Administration providing  a                                                                    
          copy   of  the   letter   of   agreement  to   the                                                                    
          legislative finance division in electronic form                                                                       
          not later than 30 days after the department                                                                           
          enters into the letter of agreement.                                                                                  
                                                                                                                                
     18.  Sec  32(g).   DEPARTMENT  OF  ADMINISTRATION.  The                                                                    
     Senate CS  amended the open-ended appropriation  to the                                                                    
     Department  of   Administration  for   actuarial  costs                                                                    
     associated with bills by adding  a requirement that the                                                                    
     appropriation  is valid  only  for  actuarial costs  of                                                                    
     bills in the finance committee of each house.                                                                              
                                                                                                                                
     19. Sec 33g  corrects the fiscal years  in the language                                                                    
     for the Division of  Insurance's reinsurance program by                                                                    
     replacing  "June  30, 2023  and  June  30, 2024,"  with                                                                    
     "June 30, 2024 and June 30, 2025."                                                                                         
                                                                                                                                
1:55:43 PM                                                                                                                    
                                                                                                                                
Senator Merrick  asked about Section 29  subsection e, which                                                                    
capped  the amount  of inflation-proofing  of the  Permanent                                                                    
Fund at  $1.413 billion. She  asked about the source  of the                                                                    
number.                                                                                                                         
                                                                                                                                
Mr. Ecklund relayed  that in the original  bill the estimate                                                                    
for inflation-proofing  was $1.4  billion, which  he thought                                                                    
used Callan's projected inflation rate  of 2 percent or 2.25                                                                    
percent.  He referenced  presentations by  both LFD  and the                                                                    
Alaska Permanent Fund Corporation  (APFC) that mentioned the                                                                    
danger of  the Earnings Reserve Account  (ERA) becoming low,                                                                    
and  explained  that  the  CS proposed  to  cap  the  amount                                                                    
appropriated for inflation-proofing.                                                                                            
                                                                                                                                
Co-Chair Stedman  recalled that inflation-proofing  could be                                                                    
as high as  $4.2 billion. He relayed that  the committee had                                                                    
thought  that  it would  be  nice  to have  some  inflation-                                                                    
proofing.                                                                                                                       
                                                                                                                                
1:57:25 PM                                                                                                                    
                                                                                                                                
Mr. Ecklund item 20 on the document:                                                                                            
                                                                                                                                
     20. DELETED  SUBSECTION. The Senate Finance  CS deleted                                                                    
     an  open-ended  federal  appropriation  to  the  Alaska                                                                    
     Broadband Office.                                                                                                          
                                                                                                                                
     21. Sec. 35(f). The  Senate Finance CS incorporates the                                                                    
     Governor's amendment  for $17.8 million, of  which $8.9                                                                    
     million  is  UGF,  to  the  Department  of  Health,  to                                                                    
     redetermine    Medicaid   eligibility    for   enrolled                                                                    
     Alaskans.  This appropriation  is  valid  for FY24  and                                                                    
     FY25.                                                                                                                      
                                                                                                                                
1:57:59 PM                                                                                                                    
                                                                                                                                
Mr. Ecklund addressed page 5 of the document:                                                                                   
                                                                                                                                
     22. DEPARTMENT OF LAW                                                                                                      
                                                                                                                                
     •  Sec 37(a)  appropriates $5  million UGF  to the  for                                                                  
        litigation relating to STATEHOOD DEFENSE for FY24-                                                                      
        FY26.                                                                                                                   
                                                                                                                                
     •  Subsection 37(b) adds intent that the funding is not                                                                  
        used for any action that may erode existing federal                                                                     
        or state subsistence rights.                                                                                            
                                                                                                                                
     This  section  is intended  to  replace  a $10  million                                                                    
     capital  appropriation   that  was  requested   by  the                                                                    
     Governor.                                                                                                                  
                                                                                                                                
     23.  Sec 40(b)  revises  the  Governor's Alaska  Marine                                                                    
     Highway System backstop language  to mirror last year's                                                                    
     language.  If federal  receipts  received  by the  AMHS                                                                    
     fall short  of the  amount appropriated in  the numbers                                                                    
     section,                                                                                                                   
          o  The Governor's  backstop language  appropriates                                                                    
          Alaska  Marine   Highway  System  funds   for  any                                                                    
          federal revenue  shortfall. This could lead  to an                                                                    
          inadequate AMHS Fund balance.                                                                                         
          o Instead, the Senate CS backstop language                                                                            
          appropriates up to $20 million of UGF to cover                                                                        
          any federal revenue shortfall.                                                                                        
                                                                                                                                
1:59:19 PM                                                                                                                    
                                                                                                                                
Mr. Ecklund continued to address page 5 of the document:                                                                        
                                                                                                                                
     24. Sec  41(b) through (e) adds  Fuel Trigger language.                                                                    
     At  the   Spring  Forecast  for  FY24,   this  language                                                                    
     estimate is $1 million.                                                                                                    
                                                                                                                                
Mr.  Ecklund   shared  an  aside  that   the  committee  was                                                                    
expecting  the  Office of  Management  and  Budget (OMB)  to                                                                    
provide some additional language to replace the current                                                                         
language in the bill.                                                                                                           
                                                                                                                                
Mr. Ecklund continued to address the document:                                                                                  
                                                                                                                                
     25. Sec  43g incorporates  the Governor's  Debt Service                                                                    
     amendment.  This  amendment  replaces 2012A  and  2013B                                                                    
    bonds with 2023A bonds for a net savings of $603.0.                                                                         
                                                                                                                                
     26. Sec 44(e)  was added to prevent  the Alaska Gasline                                                                    
     Development  Corporation  (AGDC)  from  being  able  to                                                                    
     receive  and  expend  federal or  statutory  designated                                                                    
     program  receipts through  the  Legislative Budget  and                                                                    
     Audit's RPL process.                                                                                                       
                                                                                                                                
     27. Like the Governor's  request, Sec. 45(s) fully pays                                                                    
     off  any remaining  Oil and  Gas Tax  Credits. However,                                                                    
     due to the price of  oil, the estimate has been revised                                                                    
     from $42.7 million to $55.7 million.                                                                                       
                                                                                                                                
     28.  Sec  45(t)  incorporates  a  Governor's  amendment                                                                    
     adding a  total of $1.2  million to the  election fund.                                                                    
     $1 million  is federal  receipts and $200.0  of general                                                                    
     funds.                                                                                                                     
                                                                                                                                
     29. DELETED  SUBSECTIONS FROM FUND  CAPITALIZATION. The                                                                    
     Senate   Finance   CS   deleted   the   following   two                                                                    
     subsections relating to  the Alaska Gasline Development                                                                    
     Corporation.                                                                                                               
          o   Open-ended    statutory   designated   program                                                                    
          receipts received by AGDC in FY23, and                                                                                
          o Open-ended federal authority for funding                                                                            
          received by AGDC in FY23.                                                                                             
                                                                                                                                
     30.  Subsection 45(u)  is a  NEW SUBSECTION  adding $30                                                                    
     million of  general funds  to the  Community Assistance                                                                    
     Fund. This  maintains the current level  of funding for                                                                    
     communities in  FY25. Without  this addition,  the FY25                                                                    
     distribution to  communities would be reduced  from $30                                                                    
     million to $20 million.                                                                                                    
                                                                                                                                
     31. Sec 46(o) incorporates  the Governor's $7.5 million                                                                    
     UGF appropriation to the Renewable Energy Grant Fund.                                                                      
                                                                                                                                
     32.  Sec.  46(p)  is a  legal  services  change.  Legal                                                                    
     Services  moved   the  appropriation  of   $100,000  of                                                                    
     general fund  program receipts  to the  Abandoned Motor                                                                    
     Vehicle Fund  from the  Fund Capitalization  section to                                                                    
     the  Fund Transfers  section. This  change was  made to                                                                    
     clarify  that   expenditures  from  the   fund  require                                                                    
     further appropriation.                                                                                                     
                                                                                                                                
     33. Sec. 48(a) (9) and  (10) adds two bargaining units,                                                                    
     the  Teachers' Association  of  Mt.  Edgecumbe and  the                                                                    
     Inlandboatmen's  Union of  the Pacific,  Alaska Region,                                                                    
     to  the SALARY  AND  BENEFIT  ADJUSTMENTS language.  It                                                                    
     also deleted  the Governor's blanket  approval language                                                                    
     for monetary terms of letters of agreement.                                                                                
                                                                                                                                
     34. Sec  52 repeals  a $1.65 million  appropriation for                                                                    
     the   WWAMI  program   (Washington,  Wyoming,   Alaska,                                                                    
     Montana,   and  Idaho).   Between  the   other  funding                                                                    
     appropriated  in FY23  and  FY24,  the WWAMI  program's                                                                    
     funding  is sufficient  to fund  all existing,  and the                                                                    
     proposed expanded number of program recipients.                                                                            
                                                                                                                                
2:03:02 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
further  OBJECTION,  it was  so  ordered.  The CS  for  CSHB
39(FIN) was ADOPTED.                                                                                                            
                                                                                                                                
CSHB 39(FIN)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Stedman set  the bill aside for  further review. He                                                                    
asked members  to review the  document and set  an amendment                                                                    
deadline of  2 o'clock p.m.  for Friday, April 21.  He asked                                                                    
the committee staff  to work with Mr.  Ecklund. He mentioned                                                                    
subcommittee  issues and  reminded members  to keep  a close                                                                    
eye  on budget  growth  during the  current  time of  fiscal                                                                    
constraints.                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 41(FIN) am                                                                                              
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
2:04:09 PM                                                                                                                    
                                                                                                                                
Senator Bishop MOVED to ADOPT proposed committee substitute                                                                     
for CSHB 41(FIN), Work Draft 33-GH1349\S (Marx, 4/17/23).                                                                       
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
Mr. Ecklund addressed page 7 of the document, which                                                                             
addressed changes to the proposed mental health bill.                                                                           
                                                                                                                                
     MENTAL HEALTH BUDGET LANGUAGE CHANGES                                                                                      
    SB42 (VERSION A) TO SENATE CS FOR HB41 (VERSION S)                                                                          
                                                                                                                                
     There  only differences  in  the  Mental Health  budget                                                                    
     language  are  the  sections  designed  to  mirror  the                                                                    
     operating sections  for the salary  adjustment language                                                                    
     and for the bonuses. The details are below.                                                                                
                                                                                                                                
     1. Revision  of Sec  10, which  is language  related to                                                                    
     salary  and benefit  adjustments for  bargaining units.                                                                    
     Two  additional  bargaining  units were  added  to  the                                                                    
     language  to  incorporate  additional  unions  and  the                                                                    
     addition to  clarify Bonuses  for certain  employees of                                                                    
     the executive branch.                                                                                                      
                                                                                                                                
     2. Addition of Section 8  and Section 12. This language                                                                    
     states that funding included in  the budget for BONUSES                                                                    
     FOR  CERTAIN  EMPLOYEES  OF  THE  EXECUTIVE  BRANCH  is                                                                    
     contingent upon                                                                                                            
          o the state and the applicable bargaining unit of                                                                     
          the employee entering into a letter of agreement                                                                      
          for the bonus AND that                                                                                                
          o the Department of  Administration provide a copy                                                                    
          of  the letter  of  agreement  to the  legislative                                                                    
          finance  division  in  electronic form  not  later                                                                    
          than 30 days after  the department enters into the                                                                    
          letter of agreement.                                                                                                  
                                                                                                                                
Mr. Ecklund noted that the changes mirrored proposed                                                                            
changes in the operating budget.                                                                                                
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION. There being NO                                                                         
further OBJECTION, it was so ordered. The CS for CSHB
41(FIN) was ADOPTED.                                                                                                            
                                                                                                                                
CSHB 41(FIN) was HEARD and HELD in committee for further                                                                        
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Stedman  relayed that the committee  would consider                                                                    
amendments and set  an amendment deadline of  2 o'clock p.m.                                                                    
for Friday,  April 21. He  relayed that the director  of the                                                                    
non-partisan LFD would give an  update of the state's fiscal                                                                    
picture. He  noted that there  were a couple of  large items                                                                    
that were  not in the  budget, primarily the  Permanent Fund                                                                    
Dividend  (PFD) and  education funding.  He emphasized  that                                                                    
there were  items that needed  to be included in  future CSs                                                                    
but contended  that the state  could not have  an unbalanced                                                                    
budget.                                                                                                                         
                                                                                                                                
2:07:33 PM                                                                                                                    
                                                                                                                                
ALEXEI  PAINTER,  DIRECTOR,  LEGISLATIVE  FINANCE  DIVISION,                                                                    
spoke  to a  document entitled  "LFD 1"  (copy on  file). He                                                                    
cited that the  simplified document put numbers  to what Co-                                                                    
Chair  Stedman   discussed.  The   first  line   showed  the                                                                    
Department  of Revenue's  (DOR)  Spring  Forecast, based  on                                                                    
$73/bbl price  of oil. He  noted that the  Alaska Industrial                                                                    
Development  and  Export   Authority  (AIDEA)  dividend  was                                                                    
currently  not   in  the  proposed  budget,   which  reduced                                                                    
revenue. The amount  available on line 3  showed about $6.25                                                                    
billion, while  line 4 showed the  agency operations numbers                                                                    
in HB 39 and HB 41. Line 5 had statewide items.                                                                                 
                                                                                                                                
Mr. Painter continued that Line  6 showed the capital budget                                                                    
from the first CS that  was released the previous week, plus                                                                    
the mental  health budget  capital items  that were  also in                                                                    
the CS that was just  adopted. The capital budget was $190.7                                                                    
million compared  to the  governor's amended  capital budget                                                                    
that  was a  bit  over  $300 million.  Line  7 showed  total                                                                    
appropriations  of about  $4.85 billion,  and Line  8 showed                                                                    
$1.4 billion remaining for the  PFD and additional education                                                                    
or other items as the committee chose.                                                                                          
                                                                                                                                
Co-Chair  Stedman  asked  if  Mr.  Painter  had  any  slides                                                                    
prepared that  might show what it  would look like to  pay a                                                                    
statutory dividend versus a 50/50 or other amount PFD's.                                                                        
                                                                                                                                
Mr.  Painter  relayed that  he  did  not have  any  prepared                                                                    
slides but could tell the committee the numbers.                                                                                
                                                                                                                                
Co-Chair Stedman  noted that the  other body had  proposed a                                                                    
50/50  dividend  to  total  $1.763  billion.  He  asked  Mr.                                                                    
Painter about  the calculations  if the  budget were  to pay                                                                    
the amount out of the $1.4 billion.                                                                                             
                                                                                                                                
Mr. Painter  cited that the  dividend level proposed  in the                                                                    
other  body  would leave  a  deficit  of approximately  $360                                                                    
million based on the CSs in front of the committee.                                                                             
                                                                                                                                
Co-Chair Stedman noted that the  deficit would occur without                                                                    
including   additional  education   funding  or   additional                                                                    
capital budget funding.                                                                                                         
                                                                                                                                
Mr. Painter agreed.                                                                                                             
                                                                                                                                
Senator  Merrick  asked  if $190  million  for  the  capital                                                                    
budget captured all federal funds.                                                                                              
                                                                                                                                
Mr.  Painter thought  that  the CS  for  the capital  budget                                                                    
captured all the federal funds  but did not invest in state-                                                                    
funded projects beyond that amount.                                                                                             
                                                                                                                                
Co-Chair Stedman  asked about the roughly  projected revenue                                                                    
if  the  committee decided  to  appropriate  funds for  K-12                                                                    
education and a 75/25 percent  PFD. He asked about projected                                                                    
revenue  for education  and capital  projects  if there  was                                                                    
lower than expected revenue.                                                                                                    
                                                                                                                                
Mr.  Painter  explained that  the  75/25  dividend was  $880                                                                    
million,  which would  leave  about  $620 million  remaining                                                                    
that could go to additional  capital funds or K-12 education                                                                    
funding. For  reference, he  cited that  the other  body had                                                                    
considered  $175 million  in funding  outside the  education                                                                    
funding  formula.  The amount  was  not  funded due  to  the                                                                    
failure  of the  vote  to access  the Constitutional  Budget                                                                    
Reserve (CBR).  The bill currently before  the committee was                                                                    
roughly $100 million more.                                                                                                      
                                                                                                                                
2:12:10 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman asked  if Mr.  Painter had  indicated that                                                                    
there was no K-12 funding in any currently proposed budget.                                                                     
                                                                                                                                
Mr.  Painter  affirmed  there was  no  funding  proposed  in                                                                    
addition  to the  K-12 education  funding formula  in either                                                                    
the House  or Senate budget.  He continued that both  the CS                                                                    
being considered and the House  version of the budget funded                                                                    
the  K-12 statutory  formula as  it  currently existed.  The                                                                    
House had  included an amendment to  include funding outside                                                                    
the formula  funding from  the CBR.  When the  required vote                                                                    
failed the  funding was deleted  from the bill. Both  the CS                                                                    
being  considered,   and  the   other  body's   budget  only                                                                    
contained formula funding.                                                                                                      
                                                                                                                                
Co-Chair Stedman  thought the previous year  the legislature                                                                    
had added $58 million to  the formula funding, so if nothing                                                                    
additional was funded in the  current year it would actually                                                                    
be a reduction.                                                                                                                 
                                                                                                                                
Mr. Painter affirmed that there  had been $57 million funded                                                                    
outside the  formula. He  continued that  while there  was a                                                                    
$30 Base  Student Allocation (BSA)  increase in  the current                                                                    
year,  it was  nowhere  near  to the  size  of the  previous                                                                    
year's increase.                                                                                                                
                                                                                                                                
Co-Chair  Stedman asked  Mr. Painter  to  prepare a  summary                                                                    
sheet for members  with illustrated options such  as what it                                                                    
would take to fund a 50/50  or 75/25 dividend. He noted that                                                                    
members would have to consider  a range for funding the BSA.                                                                    
He thought  there was a  desire by all committee  members to                                                                    
increase  the  BSA  and  have  a number  in  excess  of  the                                                                    
previous  year's funding  to varying  degrees. He  thought a                                                                    
summary would  also assist in  consideration of  the capital                                                                    
budget.  He   wanted  committee  members  to   consider  the                                                                    
possibility of  revenue in excess  of expectations,  as well                                                                    
as the  possibility of a  backstop in the case  that revenue                                                                    
fell below expectations. He  mentioned a waterfall provision                                                                    
for the  purpose of  forward funding  of education  or other                                                                    
items.  He  discussed  the  possibility  of  revisiting  the                                                                    
budget  in January  and February  to add  additional capital                                                                    
and maintenance money.                                                                                                          
                                                                                                                                
CSHB 41(FIN)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Stedman handed the gavel to Co-Chair Olson.                                                                            
                                                                                                                                
2:15:46 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:20:21 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Olson relayed  that the  committee would  consider                                                                    
two bills.                                                                                                                      
                                                                                                                                
SENATE BILL NO. 107                                                                                                           
                                                                                                                                
     "An  Act   relating  to  the  Alaska   permanent  fund;                                                                    
     relating  to  income  of  the  Alaska  permanent  fund;                                                                    
     relating to the amount  available for appropriation and                                                                    
     appropriations  from  the   earnings  reserve  account;                                                                    
     relating to the permanent  fund dividend; and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
2:20:36 PM                                                                                                                    
                                                                                                                                
Co-Chair  Olson  noted  that  SB 107  had  been  before  the                                                                    
committee  several times.  He noted  that the  committee had                                                                    
adopted a Committee Substitute (CS).                                                                                            
                                                                                                                                
KEN  ALPER, STAFF,  SENATOR DONNY  OLSON, reminded  that the                                                                    
committee had adopted a CS  (version P) the previous Monday.                                                                    
He explained that the bill was  intended to set the split of                                                                    
the  annual percent  of market  value (POMV)  draw from  the                                                                    
Permanent Fund including the size  and portion that would go                                                                    
towards paying  PFDs in the  future. He noted that  the bill                                                                    
would  not affect  the current  year's PFD  that was  in the                                                                    
budget  cycle.  The  effective  date of  the  bill  was  the                                                                    
following year. The core sections  of the bill would set the                                                                    
PFD at the  75/25 level, which signified that  75 percent of                                                                    
the  POMV draw  would  be available  for general  government                                                                    
spending, and  25 percent of  the bill (about  $880 million)                                                                    
would pay  the annual PFD.  The PFD would be  roughly $1,300                                                                    
given the average number of annual applicants.                                                                                  
                                                                                                                                
Mr. Alper  continued and described  a "trigger" in  the bill                                                                    
that would  change the formula  to revert to a  50/50 ratio.                                                                    
The  CS  had  changed   the  trigger,  which  was  currently                                                                    
comprised  of two  factors. The  action  required a  certain                                                                    
amount  of  new revenue,  equal  to  $1.3 billion  per  year                                                                    
passed through  new legislation  passed after  January 2023.                                                                    
The second condition  was a savings minimum  of $3.5 billion                                                                    
in the  CBR, which  had an  inflation provision  starting in                                                                    
2025.  If both  conditions  were  met by  2031  and met  the                                                                    
required written  agreement of the DOR  commissioner and LFD                                                                    
director, the PFD would go to the 50/50 amount.                                                                                 
                                                                                                                                
Co-Chair  Hoffman  MOVED  to report  CSSB  107(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
CSSB 107(FIN) was  REPORTED out of committee  with three "no                                                                    
recommendation"  recommendations  and  with  two  "do  pass"                                                                    
recommendations  and with  one  "amend" recommendation,  and                                                                    
one new fiscal impact note from the Department of Revenue.                                                                      
                                                                                                                                
2:24:31 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:30:44 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 53                                                                                                            
                                                                                                                                
    "An Act relating to involuntary civil commitments."                                                                         
                                                                                                                                
2:30:48 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson  welcomed Angela Harris to  the committee. He                                                                    
explained that Ms. Harris was  very involved in the bill and                                                                    
would offer testimony.                                                                                                          
                                                                                                                                
2:31:27 PM                                                                                                                    
                                                                                                                                
SENATOR MATT CLAMAN, SPONSOR, relayed  that his office began                                                                    
work on  SB 53 at  the request  of other legislators  and in                                                                    
response to the tragic  experience of his constituent Angela                                                                    
Harris. He  relayed that Ms.  Harris was returning  books to                                                                    
the Loussac Library  in Anchorage when a man  stabbed her in                                                                    
the back. The perpetrator had  attacked two other women less                                                                    
than two months  earlier and had been released  by the court                                                                    
after he was  found incompetent to stand  trial. He believed                                                                    
that the  individual should  not have  been released  in the                                                                    
community.  A  petition  for involuntary  commitment  should                                                                    
have  been  filed  based  on   his  prior  attacks  and  his                                                                    
psychiatric  condition,  which  made  him a  danger  to  the                                                                    
community.                                                                                                                      
                                                                                                                                
Senator  Claman noted  that the  bill dealt  with Title  12,                                                                    
which was  related to  criminal charges  in Title  47, which                                                                    
was related  to civil  proceedings. The determination  of if                                                                    
an individual  was competent or incompetent  to stand trial,                                                                    
in addition to restoration to  competency, was a process set                                                                    
forth in  the code  of criminal procedure  in Title  12. The                                                                    
standard  for  determining  an  individual's  competency  to                                                                    
stand trial was found both in  statute and a long history of                                                                    
case law. A simple explanation  of competency was whether an                                                                    
individual  understood  the   charges  against  them,  could                                                                    
assist their  lawyer, and  was able to  plead guilty  or not                                                                    
guilty to the charges. He  explained that competency was not                                                                    
a  defense and  was unrelated  to  the mental  state of  the                                                                    
individual at the time of the crime.                                                                                            
                                                                                                                                
Senator Claman  continued to discuss  the bill.  He asserted                                                                    
that in  order to protect constitutional  due process rights                                                                    
of  individuals  in  the  legal  system,  persons  who  were                                                                    
incompetent  to stand  trial  could not  be  convicted of  a                                                                    
crime.  This rule  is  because  a person  has  the right  to                                                                    
understand  a crime  that they  are being  charged with,  as                                                                    
well  as  the consequences  of  the  crime if  convicted.  A                                                                    
separate  process was  used  for  involuntary commitment  in                                                                    
Title  47.  The  standard  for  involuntary  commitment  was                                                                    
whether an individual, as a  result of mental illness, was a                                                                    
danger  to themselves  or others.  The bill  would create  a                                                                    
duty  for   the  Department  of  Law   to  petition  seeking                                                                    
involuntary   commitment   when   a  defendant   was   found                                                                    
incompetent to stand  trial at the expiration  of the period                                                                    
for competency restoration the defendant  was charged with a                                                                    
felony  offense  against  a  person  or  felony  arson,  and                                                                    
presented a danger to themselves or others.                                                                                     
                                                                                                                                
Senator Claman  discussed working  with his  constituent. He                                                                    
explained that  the legislation created an  involuntary hold                                                                    
of up  to five years  for individuals who met  the following                                                                    
qualifications:  having  been  found  incompetent  to  stand                                                                    
trial in  a felon offense  against a person or  felon arson,                                                                    
having  been previously  subject  to involuntary  commitment                                                                    
orders  of  30/90/180  days,  having  a  history  of  felony                                                                    
against a  person or felony  arson, and presenting  a danger                                                                    
to themselves or others.                                                                                                        
                                                                                                                                
2:34:37 PM                                                                                                                    
                                                                                                                                
Senator  Claman   continued  that   a  five-year   hold  for                                                                    
individuals  that met  the standards  reflected the  reality                                                                    
that  there were  a small  number of  individuals who,  as a                                                                    
result of their mental illness,  presented a danger and were                                                                    
not  suitable  for  community-based treatment  options.  The                                                                    
bill  proposed a  hold of  up to  five years  for a  limited                                                                    
number  of individuals  who needed  long-term treatment.  He                                                                    
noted  that the  proposed involuntary  hold for  up to  five                                                                    
years  had  raised  some   questions  during  the  committee                                                                    
process. He  noted that Alaska statutes  already allowed for                                                                    
an involuntary  commitment for  an unlimited  duration under                                                                    
AS  12.47.090, which  was for  individuals found  not guilty                                                                    
for reason  of insanity.  He continued  that the  courts had                                                                    
imposed the unlimited and  involuntary commitment, and those                                                                    
being held for  the unlimited period had  not challenged the                                                                    
longer period in court.                                                                                                         
                                                                                                                                
Senator Claman asserted that  the proposed longer commitment                                                                    
period  would have  fewer  disruptions  for mandatory  court                                                                    
proceedings  and was  a shorter  period  than the  unlimited                                                                    
involuntary commitment under AS  12.47.090. He asserted that                                                                    
as a matter of protecting  due process rights of individuals                                                                    
in the  state's care,  the bill  included language  that the                                                                    
respondent may petition for early  discharge. The court must                                                                    
find,  in order  to grant  a petition  for early  discharge,                                                                    
that the respondent was not  a risk to themselves or others.                                                                    
The  bill added  notification for  victims of  the time  and                                                                    
place of  the civil commitment  hearing, the length  of time                                                                    
for  which  the  respondent  was  committed,  and  when  the                                                                    
respondent  was discharged.  The  bill  created a  five-year                                                                    
commitment option.                                                                                                              
                                                                                                                                
Senator  Claman  asserted   that  the  five-year  commitment                                                                    
option  would allow  for longer  treatment plans  and better                                                                    
coordination of  care. Additionally,  the bill  also reduced                                                                    
the  number of  psychiatrists and  psychologists needed  for                                                                    
evaluation under the  insanity defense from two  to one. The                                                                    
bill added a requirement that  the court must make a finding                                                                    
when there  was a  request for  a competency  evaluation and                                                                    
increased the  time for competency  restoration from  one to                                                                    
two  years in  serious  cases. The  bill  provided that  the                                                                    
court  could  release  defendants  on  bail  for  competency                                                                    
evaluation, examination, and treatment.                                                                                         
                                                                                                                                
                                                                                                                                
Co-Chair Olson asked the sponsor  if he could comment on any                                                                    
significant  changes to  the bill  that had  taken place  in                                                                    
previous committees, and whether he was in favor.                                                                               
                                                                                                                                
Representative Claman  commented that  he supported  all the                                                                    
changes  made in  prior committees,  which  his staff  would                                                                    
address in her comments.                                                                                                        
                                                                                                                                
2:37:55 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
EMMA POTTER, STAFF, SENATOR MATT  CLAMAN, reviewed a Summary                                                                    
of  Changes from  the  previous versions  of  the bill.  She                                                                    
noted that she would review  substantive changes made in the                                                                    
Senate Health  and Social Services  (HSS) Committee  and the                                                                    
Senate Judiciary  Committee. The HSS Committee  had passed a                                                                    
CS that reflected collaborative  work with the Department of                                                                    
Law and the  Alaska Court System. The CS  reduced the number                                                                    
of   psychiatrist  or   psychologist  evaluations   for  the                                                                    
affirmative insanity  defense from two  to one to  match the                                                                    
number  of evaluations  required in  other areas  of statute                                                                    
for competency  evaluations and involuntary  commitment. The                                                                    
change  included the  removal  of the  requirement that  the                                                                    
psychologist have  a certification by the  American Board of                                                                    
Forensic  Psychology. The  sponsor had  learned that  Alaska                                                                    
did not  have any psychologists currently  practicing in the                                                                    
state  that met  the standards,  which complicated  criminal                                                                    
process under the insanity defense.                                                                                             
                                                                                                                                
Ms. Potter continued that the  bill version that came out of                                                                    
the  HSS   Committee  also   included  a   requirement  that                                                                    
attorneys make  motions in  writing requesting  a competency                                                                    
evaluation. The  provision was later amended  and refined in                                                                    
the Senate Judiciary Committee.  The written requirement had                                                                    
prompted an  indirect court rule  change, which was  not the                                                                    
intention.  She added  that  conversations  with the  Public                                                                    
Defender  Agency  helped  inform  the changes  in  the  next                                                                    
committee. The bill  required the court to  make findings of                                                                    
fact  and conclusions  of law  before ordering  a competency                                                                    
evaluation.                                                                                                                     
                                                                                                                                
Ms. Potter  explained that the  CS added references  to bail                                                                    
conditions  and   bail  release   conditions  in   order  to                                                                    
incorporate     out-patient     competency     examinations,                                                                    
evaluations, and  treatment into the  competency restoration                                                                    
process. The change reflected a  request from the Department                                                                    
of Law.  She noted that shifting  individuals to out-patient                                                                    
services when  appropriate and  possible would  decrease the                                                                    
system  overload for  competency restoration.  She discussed                                                                    
another change  requested by the department,  which involved                                                                    
an  increase  to  the  maximum  total  time  for  competency                                                                    
restoration  holds for  one to  two years  for charges  of a                                                                    
felony against a  person or felony arson.  The bill asserted                                                                    
a  standard  of  dangerousness  that  would  make  a  person                                                                    
eligible for  an up-to five-year commitment.  At the request                                                                    
of  the Department  of Law,  the CS  was amended  to include                                                                    
felony crimes of arson.                                                                                                         
                                                                                                                                
Ms.  Potter  specified  that the  CS  also  included  notice                                                                    
provisions for  victims, and a dismissed  criminal case when                                                                    
the  individual case  was found  incompetent to  stand trial                                                                    
and committed  involuntarily after a felony  crime against a                                                                    
person or felony  arson. The final change in  the Senate HSS                                                                    
Committee  included provisions  that were  drafted to  close                                                                    
the   gap  between   dismissed  criminal   charges  due   to                                                                    
incompetency,   and   the    start   of   civil   commitment                                                                    
proceedings.  The   process  was   refined  in   the  Senate                                                                    
Judiciary  Committee,  which  had  passed  out  the  current                                                                    
Version P of the bill.                                                                                                          
                                                                                                                                
Ms.  Potter continued  that the  CS removed  the requirement                                                                    
that   attorneys  make   written  motions   when  requesting                                                                    
competency evaluation  and instead  required that  the court                                                                    
make findings of fact and  conclusions of law that justified                                                                    
an  examination before  ordering  a  defendant examined  for                                                                    
competency.  The  change   reflected  a  compromise  between                                                                    
interested parties,  the Department  of Law, and  the Public                                                                    
Defender  Agency.  The CS  narrowed  the  arson standard  to                                                                    
felony arson only.                                                                                                              
                                                                                                                                
Ms.  Potter  identified  that the  most  substantial  change                                                                    
contained in the  CS was the new section  AS 47.30.706 which                                                                    
allowed for  a smooth transition for  dangerous individuals,                                                                    
based on  the legislation standard, from  dismissed criminal                                                                    
charges  due   to  incompetency   to  the  start   of  civil                                                                    
commitment   proceedings  immediately   upon  dismissal   of                                                                    
criminal  charges.  The  section  created  a  duty  for  the                                                                    
Department  of   Law  to  file  a   petition  for  emergency                                                                    
evaluation under the new section.                                                                                               
                                                                                                                                
2:41:51 PM                                                                                                                    
                                                                                                                                
Co-Chair  Olson  asked  about  the  reason  for  the  change                                                                    
related to incompetency evaluations done by a psychologist.                                                                     
                                                                                                                                
Ms. Potter asked Co-Chair Olson to repeat the question.                                                                         
                                                                                                                                
Co-Chair  Olson thought  he had  heard that  Ms. Potter  had                                                                    
indicated  that  the  CS  removed  the  requirements  for  a                                                                    
psychologist or psychiatrist.                                                                                                   
                                                                                                                                
Representative   Claman  explained   that  the   change  was                                                                    
specific  to  the  affirmative defense  of  insanity.  Under                                                                    
current  statute, there  was a  requirement  to appoint  two                                                                    
people to evaluate  the defendant. In all  other areas, only                                                                    
one evaluator  was required. The  change would  only require                                                                    
one  psychologist or  psychiatrist.  He  furthered that  the                                                                    
practice of  a second psychiatrist or  psychologist added an                                                                    
unnecessary   complication   and  expense   without   adding                                                                    
additional analysis of the case. He added that the                                                                              
prosecution and defense were both likely to hire                                                                                
evaluators.                                                                                                                     
                                                                                                                                
Co-Chair Olson understood the change.                                                                                           
                                                                                                                                
2:44:02 PM                                                                                                                    
                                                                                                                                
Ms. Potter addressed a Sectional Analysis document (copy on                                                                     
file):                                                                                                                          
                                                                                                                                
     Section 1                                                                                                                  
     AS 12.47.070. Psychiatric examination                                                                                      
     Amends  subsection   (a)  to   reduce  the   number  of                                                                    
     qualified  psychiatrists or  psychologists from  two to                                                                    
     one  for evaluation  under the  affirmative defense  of                                                                    
     insanity.    Removes   the    requirement   that    the                                                                    
     psychologist  is certified  by  the  American Board  of                                                                    
     Forensic Psychology.                                                                                                       
                                                                                                                                
     Section 2                                                                                                                  
     AS 12.47.100. Incompetency to proceed                                                                                      
     Amends subsection  (b) by  adding the  requirement that                                                                    
     the court make findings of  fact and conclusions of law                                                                    
     that justify  an examination when having  the defendant                                                                    
     examined for competency.                                                                                                   
                                                                                                                                
     Section 3                                                                                                                  
     AS 12.47.100. Incompetency to proceed                                                                                      
     Adds a new subsection (i),  which states that the court                                                                    
     may  order a  defendant on  bail to  be examined  at an                                                                    
     outpatient  clinic or  other facility  under AS  12.30.                                                                    
     This  section  includes  requirements  that  the  court                                                                    
     shall consider, in  addition to applicable requirements                                                                    
     under  AS 12.30,  for the  conditions of  a defendant's                                                                    
     release   under   this   section:   (1)   any   medical                                                                    
     information provided  by the  Department of  Family and                                                                    
     Community   Services;   (2)  the   defendant's   mental                                                                    
     condition;  (3)  the  defendant's  level  of  need  for                                                                    
     evaluation and  treatment under  this chapter;  (4) the                                                                    
     defendant's  ability   to  participate   in  outpatient                                                                    
     treatment;   and  (5)   the   defendant's  history   of                                                                    
     evaluation and treatment under this chapter.                                                                               
                                                                                                                                
     Adds  a new  subsection (j)  which states  that when  a                                                                    
     qualified  psychiatrist or  psychologist is  conducting                                                                    
     an  examination  for  competency   under  (b)  of  this                                                                    
     section,  they  may, at  the  same  time, evaluate  the                                                                    
     defendant to determine whether  the defendant meets the                                                                    
     standards for involuntary commitment.                                                                                      
                                                                                                                                
     Adds a  new subsection  (k) which  states that  a court                                                                    
     may  rely  on   a  defense  attorney's  representation,                                                                    
     including  privileged  information  provided at  an  ex                                                                    
     parte  hearing,  in making  its  findings  of fact  and                                                                    
     conclusions of  law when having the  defendant examined                                                                    
     for competency.                                                                                                            
                                                                                                                                
     Section 4                                                                                                                  
    AS 12.47.110. Commitment on finding of incompetency                                                                         
     Amends  subsection (b)  to increase  the maximum  total                                                                    
     time for  competency restoration hold from  one year to                                                                    
     two years when  the defendant is charged  with a felony                                                                    
     offense against a person or  felony arson and the court                                                                    
     finds that the defendant  presents a substantial danger                                                                    
     of physical injury  to other persons and  that there is                                                                    
     a  substantial  probability  that  the  defendant  will                                                                    
     regain   competency.  This   change  is   reflected  by                                                                    
     amending "six" months to "18" months.                                                                                      
                                                                                                                                
     Section 5                                                                                                                  
     AS  12.47.110. Commitment  on  finding of  incompetency                                                                    
     Adds a new subsection (f),  which states that the court                                                                    
     may  order  a  defendant  on bail  to  receive  further                                                                    
     evaluation  and treatment  at an  outpatient clinic  or                                                                    
     other facility  under AS  12.30. This  section includes                                                                    
     requirements   that  the   court  shall   consider,  in                                                                    
     addition  to applicable  requirements  under AS  12.30,                                                                    
     for the conditions of a  defendant's release under this                                                                    
     section: (1)  any medical  information provided  by the                                                                    
     Department of  Family and  Community Services;  (2) the                                                                    
     defendant's  mental  condition;   (3)  the  defendant's                                                                    
     level of  need for evaluation and  treatment under this                                                                    
     chapter; (4) the defendant's  ability to participate in                                                                    
     outpatient treatment;  and (5) the  defendant's history                                                                    
     of evaluation and treatment under this chapter.                                                                            
                                                                                                                                
     Adds a new subsection (g),  which states that, upon the                                                                    
     court finding that the defendant  charged with a felony                                                                    
     offense  against  a  person  or  felony  arson  remains                                                                    
     incompetent  at  the  expiration   of  the  period  for                                                                    
     competency restoration, the  prosecutor shall: (1) file                                                                    
     a  petition seeking  involuntary  commitment under  the                                                                    
     new  AS  47.30.706  before dismissal  of  charges;  (2)                                                                    
     notify  the civil  division of  the  Department of  Law                                                                    
     within  24 hours  after filing  the  petition; and  (3)                                                                    
     provide the  court's findings to the  civil division of                                                                    
     the  Department  of  Law  within  24  hours  after  the                                                                    
     court's ruling.                                                                                                            
                                                                                                                                
2:47:43 PM                                                                                                                    
                                                                                                                                
Ms. Potter continued to address the Sectional Analysis:                                                                         
                                                                                                                                
     Section  6 AS  47.30.706. Commitment  after finding  of                                                                    
     incompetence  Creates  a   new  section  AS  47.30.706:                                                                    
     Commitment  after finding  of incompetence.  Subsection                                                                    
     (a) states that  if a person who has  been charged with                                                                    
     a felony offense  against a person or  felony arson has                                                                    
     been  found   incompetent  to  proceed   with  criminal                                                                    
     charges, an  attorney with the Department  of Law shall                                                                    
     petition the court to have  the person delivered to the                                                                    
     nearest evaluation facility for an evaluation.                                                                             
                                                                                                                                
     Subsection (b) states that  upon receiving the petition                                                                    
     under (a) of this section,  the court shall: unless the                                                                    
     presumption  is  successfully  rebutted,  issue  an  ex                                                                    
     parte  order stating  that there  is probable  cause to                                                                    
     believe  the  respondent  is   mentally  ill  and  that                                                                    
     condition   causes   the   respondent  to   present   a                                                                    
     likelihood of  serious harm or self  to others; appoint                                                                    
     an  attorney  to  represent  the  respondent;  and  may                                                                    
     direct that  a peace  officer take the  respondent into                                                                    
     custody  and  deliver  the respondent  to  the  nearest                                                                    
     appropriate  facility for  evaluation. The  court shall                                                                    
     set a  date, time,  and place  for a  30-day commitment                                                                    
     hearing, to be held within 72 hours.                                                                                       
                                                                                                                                
     Subsection (c) states that a  person taken into custody                                                                    
     for evaluation under this section  may not be placed in                                                                    
     a  jail  or  other  correctional  facility  except  for                                                                    
     protective  custody purposes  and  only while  awaiting                                                                    
     transportation to an evaluation facility.                                                                                  
                                                                                                                                
     Subsection (d)  states that an individual  charged with                                                                    
     a felony offense  against a person or  felony arson who                                                                    
     is  found   to  be   incompetent  to  stand   trial  is                                                                    
     rebuttably presumed  to be mentally  ill and  present a                                                                    
     likelihood  of serious  harm to  self  or others.  This                                                                    
     creates the  basis upon which  the court can  issue the                                                                    
     ex  parte  order  and initiate  the  30-day  commitment                                                                    
     proceedings.   This   section   states  that   in   its                                                                    
     evaluation  whether  a  defendant is  likely  to  cause                                                                    
     serious harm,  the court may consider  the conduct with                                                                    
     which the defendant was charged.                                                                                           
                                                                                                                                
     The new  subsection (e) states that  after a respondent                                                                    
     is committed under this section,  the civil division of                                                                    
     the Department of Law shall  provide records related to                                                                    
     evaluation,   examination,   and   treatment   of   the                                                                    
     respondent to  the criminal division of  the Department                                                                    
     of Law.                                                                                                                    
                                                                                                                                
     Section  7 AS  47.30.710. Examination;  hospitalization                                                                    
     Adds  reference  to  the   new  section  AS  47.30.706:                                                                    
     Commitment after finding  of incompetence to subsection                                                                    
     (a) of AS 47.30.710.                                                                                                       
                                                                                                                                
     Section 8  AS 47.30.725. Rights; notification  Adds new                                                                    
     subsections  (g)  and  (h), which  create  notification                                                                    
     provisions  for the  victim of  the dismissed  criminal                                                                    
     case. Subsection  (g) states  that the victim  shall be                                                                    
     notified of: the  time and place of  a civil commitment                                                                    
     hearing; the  length of time  for which  the respondent                                                                    
     is committed  and findings of  fact made by  the court;                                                                    
     and when the respondent  is discharged from commitment.                                                                    
     Subsection  (h) states  that  subsection  (g) does  not                                                                    
     give the victim in a  dismissed criminal case access to                                                                    
     a record  or information that is  confidential under AS                                                                    
     47.30.845.                                                                                                                 
                                                                                                                                
     Section   9   AS    47.30.771.   Additional   five-year                                                                    
     commitment Adds  a new  section creating  an additional                                                                    
     involuntary commitment  of up to five  years. Five-year                                                                    
     commitment  petitions are  filed at  the expiration  of                                                                    
     180-day  commitments  for   individuals  who  meet  the                                                                    
     following criteria: the respondent  is mentally ill and                                                                    
     as a result is likely to  cause harm to self or others;                                                                    
     the  respondent  has  a history  of  a  felony  offense                                                                    
     against a  person under AS  11.41 or felony  arson; the                                                                    
     respondent has  been found  incompetent to  stand trial                                                                    
     under AS  12.47.100 and 12.47.110 for  a felony offense                                                                    
     against  a   person  under  AS  11.41   or  arson;  and                                                                    
     commitment of the respondent for  greater than 180 days                                                                    
     but  not  greater  than  five  years  is  necessary  to                                                                    
     protect the public.                                                                                                        
                                                                                                                                
     Clarifies  that  findings  of   fact  relating  to  the                                                                    
     respondent's behavior made at  30-day, 90-day, and 180-                                                                    
     day commitment  hearings shall be admitted  as evidence                                                                    
     and may  not be  rebutted except that  newly discovered                                                                    
     evidence may be  used for the purpose  of rebutting the                                                                    
     findings. Instructs the department  to submit an annual                                                                    
     report  to  the   attorney  general,  public  defender,                                                                    
     public advocate, Alaska Court  System, and the attorney                                                                    
     of  record   of  the  respondent  detailing   how  many                                                                    
     respondents are  committed under  this section  and how                                                                    
     much time remains on each order of commitment.                                                                             
                                                                                                                                
2:51:31 PM                                                                                                                    
                                                                                                                                
Ms. Potter continued to address the Sectional Analysis:                                                                         
                                                                                                                                
     Section  10   AS  47.30.780.  Early   discharge  Amends                                                                    
     subsection (a)  to include reference to  new subsection                                                                    
     (c) of AS 47.30.780.                                                                                                       
                                                                                                                                
     Section  11  AS  47.30.780. Early  discharge  Adds  new                                                                    
     subsections that  require that the  professional person                                                                    
     in   charge   may   not  discharge   respondents   from                                                                    
     involuntary  commitment  unless  the  court  enters  an                                                                    
     order    officially    terminating   the    involuntary                                                                    
     commitment  after a  hearing. This  section requires  a                                                                    
     court  decision  on  discharge  of  a  respondent  from                                                                    
     involuntary commitment.                                                                                                    
                                                                                                                                
     Section  12 AS  47.30.805. Computation,  extension, and                                                                    
     expiration  of periods  of time  Amends section  (a) to                                                                    
     include five-year commitments.  States that a five-year                                                                    
     commitment  period expires  at  the end  of five  years                                                                    
     after the 180-day period of treatment.                                                                                     
                                                                                                                                
2:52:44 PM                                                                                                                    
                                                                                                                                
ANGELA  HARRIS,  SELF, JUNEAU,  shared  her  story of  being                                                                    
stabbed  at  the Loussac  Library  in  Anchorage on  Sunday,                                                                    
February  13, 2020.  She recounted  that  her assailant  had                                                                    
stabbed  her and  penetrated her  spinal  cord before  being                                                                    
arrested  later that  afternoon. The  stabbing had  left her                                                                    
paralyzed from  the waist down and  with decreased sensation                                                                    
and strength in her  upper extremities, which required major                                                                    
changes to  her life  including modifications to  her house.                                                                    
She discussed the resources necessary  for her care, and her                                                                    
long ongoing  recovery. She reported that  her assailant had                                                                    
a  history of  assaulting women,  and in  2018 he  violently                                                                    
attacked a  family member.  He attached  two other  women on                                                                    
December  10,  2021. He  was  declared  incompetent and  not                                                                    
restorable and released  back into the public  on January 6,                                                                    
2022, after  being held  for only 28  days. On  February 10,                                                                    
2022, he  was arrested for  trespassing at the  Captain Cook                                                                    
Hotel.                                                                                                                          
                                                                                                                                
Ms. Harris contended that after  her stabbing, her assailant                                                                    
was  declared incompetent  and could  be released  after his                                                                    
next incompetency hearing the  following month. She asserted                                                                    
that  the state  needed  improvements to  its mental  health                                                                    
system,  particularly   regarding  violent   offenders,  and                                                                    
needed to  close the loop  on current laws that  allowed for                                                                    
release  of  people  after committing  violent  crimes.  She                                                                    
asserted that it should not be  left up to victims to pursue                                                                    
a civil  commitment if an  assailant was being  released due                                                                    
to  incompetence.  She  asserted   that  SB  53  closed  the                                                                    
loophole for dangerous individuals such as her assailant.                                                                       
                                                                                                                                
Ms. Harris summarized  that the bill was  written to address                                                                    
the  narrow  group  of  individuals such  as  the  man  that                                                                    
assaulted her.  She believed that jail  was an inappropriate                                                                    
place for  her assailant  given his serious  mental illness.                                                                    
She also believed the community was an improper placement.                                                                      
                                                                                                                                
2:55:58 PM                                                                                                                    
                                                                                                                                
Ms.  Harris acknowledged  concerns about  the protection  of                                                                    
civil   liberties,   and    stressed   the   importance   of                                                                    
prioritizing  the  rights  of  victims  to  safely  live  in                                                                    
communities while allowing  individuals to receive necessary                                                                    
long-term care.                                                                                                                 
                                                                                                                                
Ms.  Harris   discussed  the   difficulty  of   knowing  her                                                                    
assailant could  be released. She questioned  why funds were                                                                    
not spent towards a better  process. She thought without the                                                                    
chance  for  competency,  perpetrators  should  be  provided                                                                    
long-term placement  options. She  asserted that it  was not                                                                    
fair to  victims or  perpetrators of  violent harm  to allow                                                                    
them  to   cycle  through  the  system   repeatedly  without                                                                    
improvement to  mental health. She noted  that her assailant                                                                    
had  been in  and out  of  the state's  criminal and  mental                                                                    
health system for  decades. She hoped to share  her story to                                                                    
prevent further violence.                                                                                                       
                                                                                                                                
Ms.  Harris  discussed  filing  a  claim  with  the  Victims                                                                    
Compensation  Board and  only received  a  response after  a                                                                    
year.  She emphasized  the need  to build  out state  mental                                                                    
health facilities  and laws.  She discussed  the limitations                                                                    
of  API,  which  had  periods   of  operating  at  decreased                                                                    
capacity.  She  stressed  the  need  to  address  inadequate                                                                    
mental health  services for  violent offenders  and victims.                                                                    
She thought  an offender's rights should  be weighed against                                                                    
the rights  of a  victim. She  thought the  bill was  a good                                                                    
starting point.                                                                                                                 
                                                                                                                                
Co-Chair Olson thanked Ms. Harris for her testimony.                                                                            
                                                                                                                                
Senator Bishop  shared that  he had  spoken with  Ms. Harris                                                                    
previously. He  discussed her family  and the pain  that was                                                                    
caused by her attack.                                                                                                           
                                                                                                                                
3:01:34 PM                                                                                                                    
                                                                                                                                
ANGIE KEMP, DIRECTOR, CRIMINAL  DIVISION, DEPARTMENT OF LAW,                                                                    
introduced  herself  and relayed  that  she  was present  to                                                                    
answer questions and address the fiscal note.                                                                                   
                                                                                                                                
Co-Chair  Olson asked  if the  bill  made it  so that  there                                                                    
would not  be repeated tragedies  such as the  one described                                                                    
by Ms. Harris.                                                                                                                  
                                                                                                                                
Ms. Kemp thought the bill  took steps in the right direction                                                                    
towards  dealing   with  the   crisis.  She   discussed  the                                                                    
requirement that  a petition  for hospitalization  be filed.                                                                    
She  assumed  that  everyone   knew  that  historically  the                                                                    
petition could have  been filed by a  variety of individuals                                                                    
and wasn't required until the bill was proposed.                                                                                
                                                                                                                                
Co-Chair Olson  asked how  to balance  the measure  with the                                                                    
civil  liberties   of  an  individual  that   had  not  been                                                                    
convicted.                                                                                                                      
                                                                                                                                
Ms. Kemp thought  that the matter could  be challenging. She                                                                    
thought  there  was  a   careful  balance,  and  highlighted                                                                    
crafting  the bill  in a  way that  targeted offenders  that                                                                    
were  committing assault  or arson,  in  targeting the  most                                                                    
violent.  She  thought  her  colleagues  in  the  civil  law                                                                    
division  could  speak  about  some  of  the  constitutional                                                                    
parameters implicated  by longer periods of  commitment. She                                                                    
noted  that the  criminal  division had  not been  typically                                                                    
involved    in    filings    related   to    petitions    to                                                                    
hospitalizations. She referenced AS 47.30.                                                                                      
                                                                                                                                
Co-Chair  Olson  shared  concerns about  mental  illness  in                                                                    
rural areas.  He mentioned two recent  shootings in Golovin,                                                                    
one of  which had resulted in  a fatality. He noted  that in                                                                    
some cases  there was only  a Village Public  Safety Officer                                                                    
(VPSO), and that many places did not even have a VPSO.                                                                          
                                                                                                                                
Ms. Kemp thought a two-phased  approach was needed including                                                                    
dealing with criminal behavior as  well as addressing mental                                                                    
health  issues  as  necessary.  She  acknowledged  that  the                                                                    
issues Co-Chair Olson mentioned would  need to be dealt with                                                                    
by law enforcement and addressed to ensure accountability.                                                                      
                                                                                                                                
3:06:02 PM                                                                                                                    
                                                                                                                                
Senator Kiehl  appreciated Ms. Kemp's reference  to the bill                                                                    
and making it someone's explicit  job to file a petition for                                                                    
hospitalization, and thought it was  a strong benefit of the                                                                    
legislation. He asked to discuss  changes regarding holds to                                                                    
restore  competency  when  a   person  was  found  initially                                                                    
incompetent to  stand trial.  He asked  Ms. Kemp  to address                                                                    
the extended periods of  competency restoration available in                                                                    
the bill,  and what she  considered the state's  capacity to                                                                    
restore more people during the time period.                                                                                     
                                                                                                                                
Senator Kiehl  clarified that he  was asking if  there would                                                                    
be  more individuals  going  to  trial as  a  result of  the                                                                    
longer holds for competency restoration.                                                                                        
                                                                                                                                
Ms. Kemp was not sure  she could specifically answer Senator                                                                    
Kiehl's question. She reminded that  the court could not try                                                                    
persons who  were not  competent to  proceed because  of due                                                                    
process  interest and  a  constitutional  requirement to  be                                                                    
competent in  order to  be taken to  trial. She  thought the                                                                    
proposed lengthening  of time to 18  months could facilitate                                                                    
the  state's  ability to  restore  people  to competency  to                                                                    
stand  trial. She  noted that  she was  not involved  in the                                                                    
nuanced  process for  restoration.  She  thought the  change                                                                    
would  provide an  opportunity to  explore  methods such  as                                                                    
medication.                                                                                                                     
                                                                                                                                
Senator Kiehl relayed  that he asked the  question since the                                                                    
sponsor  had  pointed  out  that it  was  possible  to  hold                                                                    
someone  indefinitely  that  was  not guilty  by  reason  of                                                                    
insanity, but that  individual had been to trial  and had an                                                                    
oppositional  case in  front of  a jury.  He mentioned  that                                                                    
other provisions of the bill  dealt with people that had not                                                                    
been  yet  found  guilty  of anything.  He  thought  if  the                                                                    
department believed  the state could restore  more people to                                                                    
competency, it  was a strong argument  that resources should                                                                    
go in that direction.                                                                                                           
                                                                                                                                
Ms. Kemp  thought Senator  Kiehl had  made an  astute point.                                                                    
She noted  that current case  law required that in  order to                                                                    
restore  an individual  after the  first 90  days, it  would                                                                    
require  the   trial  court  to  make   a  determination  in                                                                    
conjunction  with   medical  providers  that  there   was  a                                                                    
substantial  likelihood the  person would  be restored.  She                                                                    
mentioned  due process.  She  mentioned  greater lengths  of                                                                    
time and  the civil division's prerogative.  She thought the                                                                    
civil  division  could  speak   to  its  own  constitutional                                                                    
analysis as it related  to five-year commitment periods, but                                                                    
relayed  that   the  criminal   division  believed   it  was                                                                    
constitutionally  permissible  to  hold a  person  for  that                                                                    
length of the time for the purposes of restoration.                                                                             
                                                                                                                                
Co-Chair Olson  asked about the  department's stance  on the                                                                    
bill.                                                                                                                           
                                                                                                                                
Ms.  Kemp stated  that  the department  was  neutral on  the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair Olson thanked Ms. Kemp for her testimony.                                                                              
                                                                                                                                
Co-Chair Olson  noted that there  were four fiscal  notes to                                                                    
consider for the bill.                                                                                                          
                                                                                                                                
3:11:49 PM                                                                                                                    
                                                                                                                                
DAYNA MACKEY,  BUDGET ANALYST, DEPARTMENT OF  LAW, addressed                                                                    
a  new fiscal  impact note  for the  Department of  Law, OMB                                                                    
Component 2202. The  note showed a total of  $478,800 for FY                                                                    
24. She noted that the  fiscal note proposed three full-time                                                                    
positions.                                                                                                                      
                                                                                                                                
Ms.  Mackey detailed  from the  analysis  on page  2 of  the                                                                    
fiscal note:                                                                                                                    
                                                                                                                                
     Personal Services: $377.8 per year for one partially                                                                       
     exempt Attorney 5 (range 25), one Law Office Assistant                                                                     
     2 (range 13), and one Paralegal 1 (range 14)                                                                               
                                                                                                                                
     Travel: $3.0 in FY2024 for new employee to attend                                                                          
     training, and $8.0 for contested hearings                                                                                  
                                                                                                                                
     Services: $75.0 for statewide and department allocated                                                                     
     core services costs                                                                                                        
                                                                                                                                
     Commodities: $15.0 in FY2024 only for setup costs for                                                                      
     new employees                                                                                                              
                                                                                                                                
Senator Merrick  thought that  the state  was having  a hard                                                                    
time  recruiting and  retaining attorneys,  and wondered  if                                                                    
the state would be able to  hire for the positions listed on                                                                    
the fiscal note.                                                                                                                
                                                                                                                                
Ms.  Kemp  thought  the  department was  doing  a  good  job                                                                    
filling existing positions. She  offered the caveat that she                                                                    
could not say  all the positions were  currently filled, but                                                                    
the department  was engaged in  hiring. She noted  there was                                                                    
an  uptick in  hiring that  had coincided  with graduations.                                                                    
She hoped the positions could be filled.                                                                                        
                                                                                                                                
Co-Chair  Olson  asked  about the  responsibilities  of  the                                                                    
attorney hired at rate 25 as specified in the fiscal note.                                                                      
                                                                                                                                
Ms.   Kemp  explained   that   the   department  would   not                                                                    
necessarily  hire an  attorney  5. She  wanted the  position                                                                    
that would  assist in the  role of eliminating  human error.                                                                    
She shared  a concern about attorneys  having the experience                                                                    
to  file the  petitions  without risk  of  human error.  She                                                                    
noted that there  was potential for hiring an  attorney 3 or                                                                    
attorney 4.                                                                                                                     
                                                                                                                                
Co-Chair  Olson   thought  Ms.  Kemp  had   voiced  a  valid                                                                    
consideration.                                                                                                                  
                                                                                                                                
3:16:52 PM                                                                                                                    
                                                                                                                                
MATT  DAVIDSON,  SPECIAL   ASSISTANT  TO  THE  COMMISSIONER,                                                                    
DEPARTMENT  OF FAMILY  AND COMMUNITY  SERVICES, addressed  a                                                                    
new fiscal note from the  Department of Family and Community                                                                    
Services (DFCS),  OMB Component  3311, for  inpatient mental                                                                    
health at  the Alaska Psychiatric Institute  (API). He noted                                                                    
that the majority of the fiscal  note was included in the FY                                                                    
24 budget request of $800,000  to stand up a community-based                                                                    
restoration program and a  jail-based restoration program to                                                                    
increase capacity to provide  restoration services. He noted                                                                    
that API was currently full.  There were 10 restoration beds                                                                    
out of  80 total beds.  The administration was  pursuing two                                                                    
restoration programs for lower-level offenders.                                                                                 
                                                                                                                                
Mr. Davidson noted  that the fiscal note  included a request                                                                    
for an  update of  a 2018  forensic restoration  study. With                                                                    
the bill  proposing the double restoration  time frames, the                                                                    
department felt  it needed  to improve the  study of  how to                                                                    
move  forward with  forensic restoration  in  a timely  way.                                                                    
Additionally,  the  department  was   looking  at  a  modest                                                                    
expansion  of   the  jail-based  restoration   program  that                                                                    
proposed the hire of two new positions over two years.                                                                          
                                                                                                                                
Senator Kiehl  asked if Mr. Davidson  could discuss capacity                                                                    
and the  expectation of  whether the  additional restoration                                                                    
programs included  in the governor's  budget would  meet the                                                                    
needs  if  the  bill  passed that  doubled  hold  times  for                                                                    
restoration.                                                                                                                    
                                                                                                                                
Mr. Davidson thought the department  was keenly aware of the                                                                    
delays in  restoration services. He  noted that the  plan of                                                                    
doing  jail-based and  community-based restoration  programs                                                                    
was  to lower  the backlog.  He estimated  that there  was a                                                                    
backlog of 30 defendants  awaiting restoration services, and                                                                    
a delay of up to 150  days. The expansion into 2 years would                                                                    
give more  time for the  most serious defendants  to receive                                                                    
services. He  shared a concern  that there could  be further                                                                    
delays in some cases, while others would be addressed.                                                                          
                                                                                                                                
3:20:43 PM                                                                                                                    
                                                                                                                                
Senator Kiehl  expressed concern  about potential  growth of                                                                    
the  waitlist. He  pondered whether  the budget  request was                                                                    
sufficient.                                                                                                                     
                                                                                                                                
Senator Kiehl  asked about the  notification element  of the                                                                    
fiscal  note from  DFCS. He  noted that  DFCS would  need to                                                                    
develop  better   notification,  but  thought  it   was  not                                                                    
included in the fiscal note.  He asked if the department had                                                                    
an estimate of what was needed to do the notification.                                                                          
                                                                                                                                
Mr. Davidson relayed that  the new notification requirements                                                                    
that had  been in the earlier  version of the bill  had been                                                                    
removed in  the Senate Judiciary Committee.  The most recent                                                                    
fiscal  notes reflected  that the  requirement had  moved to                                                                    
the  Department  of  Law,  because   of  its  robust  victim                                                                    
notification program. He  noted that there would  be no cost                                                                    
to DFCS for the notifications.                                                                                                  
                                                                                                                                
Co-Chair Olson  considered that there  were four  new people                                                                    
proposed to  be hired in  FY 24 and FY  25. He asked  if the                                                                    
fiscal note reflected the hire  of eight new individuals, or                                                                    
if the total was for the same four people.                                                                                      
                                                                                                                                
Mr. Davidson  relayed that LFD  had asked the  department to                                                                    
display  the information  in  the way  shown  on the  fiscal                                                                    
note. He continued that in  FY 24, the department planned to                                                                    
hire  five  new  positions,  and   the  following  year  the                                                                    
positions would  still be in  effect, with one  new position                                                                    
in FY 26  and one new position  in FY 28. The  note showed a                                                                    
total of 7 new positions.                                                                                                       
                                                                                                                                
Co-Chair Olson  asked if  the fiscal  note was  for one-time                                                                    
funding.                                                                                                                        
                                                                                                                                
Mr. Davidson relayed  that the one-time funding  was for the                                                                    
additional  forensic study,  with  the rest  expected to  be                                                                    
ongoing.  He thought  refreshing  the  forensic study  would                                                                    
help inform how to meet the  forensic and civil needs in the                                                                    
state.                                                                                                                          
                                                                                                                                
3:24:05 PM                                                                                                                    
                                                                                                                                
SAMANTHA  CHEROT, DIRECTOR,  ALASKA PUBLIC  DEFENDER AGENCY,                                                                    
spoke to FN 4 from the  Department of Law. The note showed a                                                                    
total  of   $464.5  thousand   designated  for   each  year,                                                                    
primarily  consisting  of  personal services  funds  for  an                                                                    
attorney  4  position  and  an   attorney  5  position.  The                                                                    
attorney 4 position would be  to help absorb the anticipated                                                                    
increase  in  workload  related to  the  bill,  which  would                                                                    
handle commitment matters. The  attorney 5 position would be                                                                    
expected to  be a  more experienced attorney  with expertise                                                                    
in  criminal law  and civil  commitment. The  position would                                                                    
also  first  supervise  a unit  of  attorneys  in  Anchorage                                                                    
handling the  civil commitment  matters. The  position would                                                                    
also serve  as a  subject matter expert  for other  areas of                                                                    
the state. She thought the  scope of changes proposed in the                                                                    
bill made the supervisory position essential.                                                                                   
                                                                                                                                
3:25:40 PM                                                                                                                    
                                                                                                                                
JAMES   STINSON,  DIRECTOR,   OFFICE  OF   PUBLIC  ADVOCACY,                                                                    
DEPARTMENT  OF  ADMINISTRATION,  spoke  to  FN  5  from  the                                                                    
Department  of Administration  (DOA), OMB  Component 43.  He                                                                    
thought  the fiscal  note was  straightforward, with  $357.6                                                                    
thousand for two positions at  the Office of Public Advocacy                                                                    
(OPA).  One position  was  an attorney  1  through 4  "flex"                                                                    
position.  The reasons  were due  to  the need  to for  some                                                                    
litigation and  legal expertise as  described by  the Public                                                                    
Defender  Agency.  He  noted  that OPA  would  have  a  much                                                                    
smaller  overall number  of commitment  cases. He  discussed                                                                    
public  guardian  positions,  which  would  be  involved  in                                                                    
discharge planning  and housing for  wards of the  state. He                                                                    
thoguht the fiscal note was sufficient for OPA.                                                                                 
                                                                                                                                
Senator Kiehl observed that both  the Public Defender Agency                                                                    
and OPA both had a line  in the fiscal notes about the civil                                                                    
commitment of up  to five years, and the  bill's flipping of                                                                    
the  burden  from  the  government  (proving  a  person  was                                                                    
dangerous) to the individual (proving  that a person was not                                                                    
dangerous).   He   asked   if  the   standards   were   well                                                                    
established,  or  if  a  series   of  appellate  cases  were                                                                    
expected to get the matter resolved.                                                                                            
                                                                                                                                
Ms. Cherot  agreed there  would be  an increase  in workload                                                                    
handling hearings representing individuals  when there was a                                                                    
petition  to end  the commitment  period  earlier than  five                                                                    
years.  She  did not  know  that  the standard  was  clearly                                                                    
delineated  as written.  She could  foresee  there could  be                                                                    
litigation and  thought the  burden would  be placed  on the                                                                    
respondent.                                                                                                                     
                                                                                                                                
3:28:58 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson OPENED public testimony.                                                                                         
                                                                                                                                
3:29:14 PM                                                                                                                    
                                                                                                                                
MARK  REGAN,  LEGAL  DIRECTOR,   DISABILITY  LAW  CENTER  OF                                                                    
ALASKA, addressed two aspects of  the bill. He addressed the                                                                    
five-year  hold on  the  civil side  and  the resources  the                                                                    
state  needed  to  devote   to  competency  restoration.  He                                                                    
referenced people  in jails awaiting  competency restoration                                                                    
that should  be taking place  at API. He asserted  that what                                                                    
had gone wrong  in Ms. Harris' case was not  a matter of the                                                                    
time frame,  but rather  a problem of  a petition  for civil                                                                    
commitment not being filed when  the perpetrator was dropped                                                                    
from the  criminal system. He  explained that once  a person                                                                    
got into  API on  the civil  side, there  was a  practice of                                                                    
applying repeated 180-day commitments.                                                                                          
                                                                                                                                
Mr.  Regan discussed  the burden  on victims,  and explained                                                                    
that once  a person  was civilly committed,  it was  not the                                                                    
burden on  the victim to  continue the process.  Instead, it                                                                    
was a matter  of the existing system  (particularly at API).                                                                    
He  hoped  that as  the  committee  considered the  positive                                                                    
aspects of the  bill, it would drop the  five-year hold from                                                                    
the bill.  He mentioned the  burden of proof and  noted that                                                                    
there was  not a standard  in the  bill on whether  the hold                                                                    
should be  18 months, or a  number of years. He  thought the                                                                    
standards  of the  length of  commitment  periods should  be                                                                    
addressed by the legislature rather than the courts.                                                                            
                                                                                                                                
Mr.  Regan  addressed  the  broken"  competency  restoration                                                                    
system and  referenced a forensic  study completed  in 2019.                                                                    
The study had indicated that 10  beds at API was not enough,                                                                    
and that  often people were  stuck in  jail for 150  days or                                                                    
longer  awaiting  competency  restoration. He  thought  more                                                                    
competency  restoration  spaces  were  needed  in  different                                                                    
settings. He  supported the updated study  referenced in the                                                                    
fiscal note for  DFCS, which could identify a  better way of                                                                    
doing competency restoration.                                                                                                   
                                                                                                                                
3:34:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson asked if Mr. Regan was in favor of the bill.                                                                     
                                                                                                                                
Mr. Regan relayed  that the Disability Law  Center would not                                                                    
object  to  parts  of  the   bill  that  addressed  extended                                                                    
competency restoration, or  provisions that addressed victim                                                                    
notification.  He  thought  there  was a  problem  with  the                                                                    
proposed five-year hold, and thought  the larger problem was                                                                    
that  more   pressure  would  be   put  on   the  competency                                                                    
restoration  system  without  provided needed  services.  He                                                                    
continued that the appropriations  provided for people to do                                                                    
the work at the psychologist end  of the process but did not                                                                    
provide for a  facility to provide the  services. He thought                                                                    
it would be  a shame if the legislature, in  response to the                                                                    
tragedy, made  the system  worse for  competency restoration                                                                    
services.                                                                                                                       
                                                                                                                                
Co-Chair Olson  thought Mr. Regan  was in favor of  the bill                                                                    
but with significant change.                                                                                                    
                                                                                                                                
Mr. Regan  agreed that the  center was opposed to  the five-                                                                    
year  hold  but   was  very  much  in   favor  of  increased                                                                    
competency restoration services.                                                                                                
                                                                                                                                
3:36:20 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson CLOSED public testimony.                                                                                         
                                                                                                                                
Co-Chair  Olson asked  the  sponsor if  he  wanted to  offer                                                                    
comments on the testimony.                                                                                                      
                                                                                                                                
Senator  Claman   referenced  questions  by   Senator  Kiehl                                                                    
regarding  the  standard   for  a  person  that   was  in  a                                                                    
commitment  of  up  to  five-years  and  who  sought  to  be                                                                    
released. He  thought it was  a challenge that to  enter the                                                                    
five-year commitment  the court would have  to make findings                                                                    
about  the  person's dangerousness  to  self  or others.  He                                                                    
continued that the  court having already made  a decision to                                                                    
hold them  for that period,  it would  not make sense  for a                                                                    
person to annually  file a petition for  restoration with no                                                                    
evidence,  after which  the department  would  have to  hold                                                                    
another hearing  and present the same  evidence. He expected                                                                    
that the Court System would  apply the structure of the bill                                                                    
as to how  the hearings were structured,  but the respondent                                                                    
would have to present evidence.                                                                                                 
                                                                                                                                
Representative Claman  referenced John Hinkley Jr.,  who had                                                                    
attempted to  assassinate former President Rondald  Regan in                                                                    
1981.  He  recounted that  Mr.  Hinkley  Jr. was  found  not                                                                    
guilty for reasons of insanity,  after which he went through                                                                    
over  40 years  of efforts  with petitions  to the  court to                                                                    
reduce his level of supervision  and custody. He pointed out                                                                    
that the burden  of proof was always on Mr.  Hinkley to show                                                                    
changed  circumstances, who  had worked  with a  psychiatric                                                                    
hospital and  was released from  custody after 42  years. He                                                                    
thought there were  case examples that the  court could look                                                                    
into.                                                                                                                           
                                                                                                                                
Co-Chair   Olson   referenced   concern   about   competency                                                                    
restoration and asked if the sponsor wanted to comment.                                                                         
                                                                                                                                
Representative Claman  pondered that  many people  that were                                                                    
currently  classified as  incompetent had  been through  the                                                                    
system   previously  and   were  known   to  likely   remain                                                                    
incompetent. He suggested  that the state could  spend a lot                                                                    
of resources to try and  restore competency, but there was a                                                                    
low likelihood of  success. He thought the  question was how                                                                    
to make smart decisions about  who to invest the restoration                                                                    
process in  when there was  evidence that some  people could                                                                    
not  be   restored.  He  mentioned   outpatient  restoration                                                                    
services as  proposed in  the bill,  available to  those who                                                                    
were able to safely do so.  He thought the Department of Law                                                                    
had indicated  there were 178  people in 2022 that  had been                                                                    
subject  to  competency  restoration  proceedings,  and  the                                                                    
significant majority of the people  would not fit the felony                                                                    
against a person category.                                                                                                      
                                                                                                                                
Co-Chair Olson set the bill aside.                                                                                              
                                                                                                                                
SB 53 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Olson discussed the agenda for the following day.                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:42:26 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:42 p.m.                                                                                          

Document Name Date/Time Subjects
SB 53 Sponsor Statement version P.pdf SFIN 4/19/2023 1:30:00 PM
SFIN 5/3/2023 9:00:00 AM
SB 53
SB 53 Sectional Analysis version P.pdf SFIN 4/19/2023 1:30:00 PM
SFIN 5/3/2023 9:00:00 AM
SB 53
SB 53 Summary of Changes 4.12.2023.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
SB 53 Supporting Document - Frequently Asked Questions 3.10.2023.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
SB 53 Research - Forensic Psychiatric Hospital Feasibility Study Draft 2.1.2019.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
SB 53 Research - NCSL Competency to Stand Trial General Overview 11.1.2022.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
SB 53 Research - NCSL Spreadsheet State Involuntary Commitment 3.13.2023.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
SB 53 Research - NCSL Involuntary Commitment Timeline Maximums 3.13.2023.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
SB 53 Research - CSG Competency Report 10.1.2020.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
SB 53 Testimony Received 4.12.2023.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
SB 53 Research KTUU Article 2.15.2022.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
SB 53 LAW CJL 041423.pdf SFIN 4/19/2023 1:30:00 PM
SFIN 5/3/2023 9:00:00 AM
SB 53
SB 53 Support Schenker.pdf SFIN 4/19/2023 1:30:00 PM
SFIN 5/3/2023 9:00:00 AM
SB 53
Sb 53 Support Dolphin.pdf SFIN 4/19/2023 1:30:00 PM
SFIN 5/3/2023 9:00:00 AM
SB 53
SB 53 Testimony Dahl.pdf SFIN 4/19/2023 1:30:00 PM
SFIN 5/3/2023 9:00:00 AM
SB 53
SB 53 FCS IMH API 041723.pdf SFIN 4/19/2023 1:30:00 PM
SB 53
HB 39 work draft version R.pdf SFIN 4/19/2023 1:30:00 PM
HB 39
HB 41 work draft version S.pdf SFIN 4/19/2023 1:30:00 PM
HB 41
HB 39-HB 41-SB 41 LFD SCS1FiscalPicture.pdf SFIN 4/19/2023 1:30:00 PM
HB 39
HB 41
SB 41
HB 39-HB 41 SCS 1 Changes from Gov A - 4-19-23.pdf SFIN 4/19/2023 1:30:00 PM
HB 39
HB 41