Legislature(2011 - 2012)SENATE FINANCE 532

04/13/2012 09:00 AM FINANCE


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+ SB 217 PHARMACY AUDITS TELECONFERENCED
Heard & Held
+ HB 286 G.O. BONDS: TRANSPORTATION PROJECTS TELECONFERENCED
Heard & Held
+ HB 282 MILITARY TRAINING CREDIT/TEMP. LICENSE TELECONFERENCED
Heard & Held
+ HB 301 BOATING REGULATION: SUNSET/ENFORCEMENT TELECONFERENCED
Heard & Held
+ HB 204 STATE PROCUREMENT CODE TELECONFERENCED
Heard & Held
+ HB 205 PUBLIC PROCUREMENT TELECONFERENCED
Heard & Held
+ HB 252 SMALL BUSINESS INCOME TAX EXEMPTION TELECONFERENCED
Heard & Held
+ HB 276 OIL/GAS PROD. TAX CREDITS/RATES/VALUE TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 21 SUICIDE PREVENTION COUNCIL MEMBERS TELECONFERENCED
Moved CSHB 21(FIN) Out of Committee
+= HB 60 GEODUCK AQUATIC FARMING/SEED TRANSFER TELECONFERENCED
Moved HB 60 Out of Committee
+= HB 78 INCENTIVES FOR CERTAIN MEDICAL PROVIDERS TELECONFERENCED
Moved CSHB 78(FIN) Out of Committee
+= HB 115 NAMING WALTER J. HICKEL EXPRESSWAY TELECONFERENCED
Moved CSHB 115(TRA) Out of Committee
+= HB 131 COMMUNITY AND TRANSPORTATION ADV. BOARD TELECONFERENCED
Moved SCS CSHB 131(FIN) Out of Committee
+= HB 246 NAMING CERTAIN BRIDGES & AIRPORTS TELECONFERENCED
Moved SCS CSHB 246(FIN) Out of Committee
+= HB 258 NATURALLY OCCURRING ASBESTOS TELECONFERENCED
Moved SCS CSHB 258(FIN) Out of Committee
+= HB 298 EXEMPTIONS FROM MINING TAX TELECONFERENCED
Moved CSHB 298(FIN) Out of Committee
+= HB 302 CONTRIBUTIONS FROM PFD: UNIV/AUDITS TELECONFERENCED
Moved CSHB 302(FIN) am Out of Committee
+= HB 360 INTERSTATE MINING COMPACT & COMMISSION TELECONFERENCED
Moved HB 360 Out of Committee
+= HB 366 DISASTER PLANNING AND SERVICES TELECONFERENCED
Moved HB 366 Out of Committee
+= HCR 23 ALASKA ARCTIC POLICY COMMISSION TELECONFERENCED
Scheduled But Not Heard
= SB 121 TEACHERS & PUB EMPLOYEE RETIREMENT PLANS
Moved CSSB 121(STA) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 13, 2012                                                                                            
                         9:08 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:08:49 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:08 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lesil McGuire, Vice-Chair                                                                                               
Senator Johnny Ellis                                                                                                            
Senator Dennis Egan                                                                                                             
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Bob  Herron;   Representative  Paul  Seaton;                                                                    
Representative    Anna   Fairclough;    Representative   Mia                                                                    
Costello;  Yasmine   Habash,  Staff,   Representative  Craig                                                                    
Johnson;  Darwin  Peterson,  Staff,  Senator  Bert  Stedman;                                                                    
Terry  Harvey,  Staff,  Representative Cathy  Munoz;  Rachel                                                                    
Kallander,   Staff,  Representative   Bill  Thomas;   Brodie                                                                    
Anderson, Staff,  Representative Reggie Joule;  Nancy Manly,                                                                    
Staff,  Representative Bob  Lynn;  Michael Paschall,  Staff,                                                                    
Representative Eric Feige; Dana  Owen, Staff, Senator Dennis                                                                    
Egan;  Jim Puckett,  Director,  Division  of Retirement  and                                                                    
Benefits,  Department   of  Administration;   Weston  Eiler,                                                                    
Staff,  Senator   Bert  Stedman;  Aaron   Schroeder,  Staff,                                                                    
Representative   Bill   Thomas;   Astrid   Lievano,   Staff,                                                                    
Representative Alan Austerman.                                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Mark San-Souci, Regional State Liaison Office, U.S.                                                                             
Department of Defense, Washington; Tyler Arnold, CEO,                                                                           
Simply Social, Anchorage.                                                                                                       
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
CSSB 121 TEACHERS & PUB EMPLOYEE RETIREMENT PLANS                                                                               
                                                                                                                                
          CSSB 121(STA) was REPORTED out of committee  with                                                                     
          a "do  pass" recommendation and with  a previously                                                                    
          published  fiscal  impact  note: FN2(DOR),  a  new                                                                    
          fiscal   impact  note   from  the   Department  of                                                                    
          Administration,  and  a new  indeterminate  fiscal                                                                    
          note from the Department of Administration.                                                                           
                                                                                                                                
SB 217    PHARMACY AUDITS                                                                                                       
                                                                                                                                
          SB  217  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CSHB 21(FIN)                                                                                                                    
          SUICIDE PREVENTION COUNCIL MEMBERS                                                                                    
                                                                                                                                
          CSHB 21(FIN) was REPORTED out  of committee with a                                                                    
          "do  pass" recommendation  and with  a new  fiscal                                                                    
          impact  note from  the  Department  of Health  and                                                                    
          Social Services.                                                                                                      
                                                                                                                                
CSHCR 23(FIN)                                                                                                                   
          ALASKA ARCTIC POLICY COMMISSION                                                                                       
                                                                                                                                
          CSHCR 23(FIN) was SCHEDULED but not HEARD.                                                                            
                                                                                                                                
                                                                                                                                
HB 60     GEODUCK AQUATIC FARMING/SEED TRANSFER                                                                                 
                                                                                                                                
          HB 60  was REPORTED  out of  committee with  a "do                                                                    
          pass"  recommendation  and   with  two  previously                                                                    
          published   zero   fiscal  notes:   FN3(DNR)   and                                                                    
          FN4(DFG).                                                                                                             
                                                                                                                                
CSHB 78(FIN)                                                                                                                    
         INCENTIVES FOR CERTAIN MEDICAL PROVIDERS                                                                               
                                                                                                                                
          CSHB 78(FIN) was REPORTED out  of committee with a                                                                    
          "do  pass" recommendation  and  with a  previously                                                                    
          published  fiscal impact  note:  FN4(DHSS), and  a                                                                    
          previously published zero fiscal note: FN3(DEED).                                                                     
                                                                                                                                
CSHB 115(TRA)                                                                                                                   
          NAMING WALTER J. HICKEL EXPRESSWAY                                                                                    
                                                                                                                                
          CSHB 115(TRA) was REPORTED out of committee  with                                                                     
          a  "do pass"  recommendation  and with  previously                                                                    
          published fiscal impact note: FN2(DOT).                                                                               
                                                                                                                                
CSHB 131(TRA) am                                                                                                                
          COMMUNITY AND TRANSPORTATION ADV. BOARD                                                                               
                                                                                                                                
          CSHB 131(FIN) was REPORTED out of committee  with                                                                     
          a "do  pass" recommendation and with  a previously                                                                    
          published fiscal impact note: FN3(DOT).                                                                               
                                                                                                                                
HB 204    STATE PROCUREMENT CODE                                                                                                
                                                                                                                                
          HB  204  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
HB 205    PUBLIC PROCUREMENT                                                                                                    
                                                                                                                                
          HB  205  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CSHB 246(FIN)                                                                                                                   
          NAMING CERTAIN BRIDGES & AIRPORTS                                                                                     
                                                                                                                                
          CSHB 246(FIN) was REPORTED out of committee  with                                                                     
          a "do  pass" recommendation and with  a previously                                                                    
          published  fiscal  impact  note: FN3(DOT),  and  a                                                                    
          previously published fiscal impact note FN4(DOT).                                                                     
                                                                                                                                
CSHB 252(FIN)                                                                                                                   
          SMALL BUSINESS INCOME TAX EXEMPTION                                                                                   
                                                                                                                                
          CSHB 252(FIN) was HEARD and  HELD in committee for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CSHB 258(FIN)                                                                                                                   
          NATURALLY OCCURRING ASBESTOS                                                                                          
                                                                                                                                
          SCS CSHB 258 was REPORTED  out of committee with a                                                                    
          "do  pass" recommendation  and  with a  previously                                                                    
          published   zero   fiscal   note:   FN1(DLWD),   a                                                                    
          previously    published    fiscal   impact    note                                                                    
          FN3(DHSS), a previously  published   zero   fiscal                                                                    
          note:  FN4(DOL),   a  previously   published  zero                                                                    
          fiscal  note: FN5  (DNR),  a previously  published                                                                    
          fiscal  impact note:  FN6(DEC),  and a  previously                                                                    
          published fiscal impact note: FN7(DOT).                                                                               
                                                                                                                                
CSHB 276(FIN)                                                                                                                   
          OIL/GAS PROD. TAX CREDITS/RATES/VALUE                                                                                 
                                                                                                                                
          CSHB 276(FIN) was SCHEDULED but not HEARD.                                                                            
                                                                                                                                
CSHB 282(FIN)                                                                                                                   
          MILITARY TRAINING CREDIT/TEMP. LICENSE                                                                                
                                                                                                                                
          CSHB 282(FIN) was HEARD and  HELD in committee for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CSHB 286(FIN)                                                                                                                   
          G.O. BONDS: TRANSPORTATION PROJECTS                                                                                   
                                                                                                                                
          CSHB 286(FIN) was HEARD and  HELD in committee for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CSHB 298(FIN)                                                                                                                   
          EXEMPTIONS FROM MINING TAX                                                                                            
                                                                                                                                
          CSHB 298(FIN) was REPORTED out of committee  with                                                                     
          a "do  pass" recommendation and with  a previously                                                                    
          published  zero  fiscal   note:  FN1(DNR),  and  a                                                                    
          previously    published   fiscal    impact   note:                                                                    
          FN3(DOR).                                                                                                             
                                                                                                                                
CSHB 301(FIN)                                                                                                                   
          BOATING REGULATION: SUNSET/ENFORCEMENT                                                                                
                                                                                                                                
          CSHB 301(FIN) was HEARD and  HELD in committee for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CSHB 302(FIN)am                                                                                                                 
          CONTRIBUTIONS FROM PFD: UNIV/AUDITS                                                                                   
                                                                                                                                
          CSHB  302(FIN)am  was  REPORTED out  of  committee                                                                    
          with  a  "do  pass"   recommendation  and  with  a                                                                    
          previously published zero fiscal note: FN1(DOR).                                                                      
                                                                                                                                
HB 360    INTERSTATE MINING COMPACT & COMMISSION                                                                                
                                                                                                                                
          HB 360 was REPORTED out of committee with a "do                                                                       
          pass" recommendation and with a previously                                                                            
          published fiscal impact note: FN2(HFIN/DNR).                                                                          
                                                                                                                                
HB 366    DISASTER PLANNING AND SERVICES                                                                                        
                                                                                                                                
          HB 366 was REPORTED out of committee with a "do                                                                       
          pass" recommendation and with a previously                                                                            
          published zero fiscal note: FN1(DMVA).                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 78(FIN)                                                                                                 
                                                                                                                                
     "An  Act  establishing  a loan  repayment  program  and                                                                    
     employment  incentive program  for certain  health care                                                                    
     professionals employed in the  state; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
9:11:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BOB  HERRON,  explained  that  HB  78  would                                                                    
provide  financial   incentives  for  certain   health  care                                                                    
providers that Alaska needed, in 10 different occupations.                                                                      
                                                                                                                                
Co-Chair Stedman  discussed the fiscal notes  in the packet.                                                                    
He noted that public testimony had been previously held.                                                                        
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  report  CSHB  78(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB 78(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation  and  with   a  previously  published  fiscal                                                                    
impact  note: FN4(DHSS),  and  a  previously published  zero                                                                    
fiscal note: FN3(DEED).                                                                                                         
                                                                                                                                
CS FOR HOUSE BILL NO. 115(TRA)                                                                                                
                                                                                                                                
     "An Act designating a portion of Minnesota Drive and a                                                                     
     portion of O'Malley Road in Anchorage the Walter J.                                                                        
     Hickel Expressway."                                                                                                        
                                                                                                                                
9:12:36 AM                                                                                                                    
                                                                                                                                
YASMINE   HABASH,  STAFF,   REPRESENTATIVE  CRAIG   JOHNSON,                                                                    
explained that  HB 115  would concurrently  name a  7.5 mile                                                                    
portion of Minnesota Drive and  O'Malley Road the "Walter J.                                                                    
Hickel Expressway."                                                                                                             
                                                                                                                                
9:13:01 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  discussed the  fiscal note in  the packet.                                                                    
He noted that public testimony had been previously heard.                                                                       
                                                                                                                                
Co-Chair  Hoffman  MOVED  to report  CSHB  115(TRA)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  115(TRA) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation and  with previously  published fiscal                                                                    
impact note: FN2 (DOT&PF).                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 131(TRA) am                                                                                             
                                                                                                                                
     "An Act  establishing the  Alaska Community  and Public                                                                    
     Transportation Advisory  Board and relating to  a long-                                                                    
     range  community and  public  transportation plan;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:13:56 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute  for  HB  131, Work  Draft  27-LS0418\I  (Martin,                                                                    
4/10/12).                                                                                                                       
                                                                                                                                
Co-Chair Stedman OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
9:14:20 AM                                                                                                                    
                                                                                                                                
DARWIN  PETERSON,  STAFF,  SENATOR BERT  STEDMAN,  explained                                                                    
that the  only change  in the  bill was  located on  Page 4,                                                                    
lines 17 through 20:                                                                                                            
                                                                                                                                
          (f) The board shall analyze the use of                                                                                
     alternative  fuels, including  compresses natural  gas,                                                                    
     propane,   and  biodiesel   in  community   and  public                                                                    
     transportation vehicle fleets  and make recommendations                                                                    
     for  the use  of alternative  fuel vehicles  where cost                                                                    
     effective.                                                                                                                 
                                                                                                                                
Mr.  Peterson  shared that  at  a  previous hearing  Senator                                                                    
McGuire had requested  that the language be  included in the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair  Stedman  REMOVED  his OBJECTION.  There  being  NO                                                                    
FURTHER OBJECTION, Work Draft 27-LS0418\I was ADOPTED.                                                                          
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
9:15:31 AM                                                                                                                    
                                                                                                                                
TERRY HARVEY,  STAFF, REPRESENTATIVE CATHY  MUNOZ, explained                                                                    
that  the  bill would  establish  the  Alaska Community  and                                                                    
Public Transportation  Advisory Board,  which would  bring a                                                                    
group   of  Alaskans   together  in   order  to   coordinate                                                                    
transportation in the state.                                                                                                    
                                                                                                                                
9:15:55 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to report  CSHB  131(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  131(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation and with  a previously published fiscal                                                                    
impact note: FN3(DOT).                                                                                                          
                                                                                                                                
CS FOR HOUSE BILL NO. 246(FIN)                                                                                                
                                                                                                                                
     "An Act naming certain bridges and airports."                                                                              
                                                                                                                                
9:16:39 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute  for  HB  246,  Work  Draft  27-LS0921\E  (Wayne,                                                                    
4/10/12).                                                                                                                       
                                                                                                                                
9:16:46 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
9:16:51 AM                                                                                                                    
                                                                                                                                
RACHEL   KALLANDER,  STAFF,   REPRESENTATIVE  BILL   THOMAS,                                                                    
explained  that the  change in  the bill  would re-establish                                                                    
the Klawock Airport as the Frank Petratrovich Airport.                                                                          
                                                                                                                                
9:17:25 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  REMOVED  his OBJECTION.  There  being  NO                                                                    
OBJECTION, Work Draft 27-LS0921\E was ADOPTED.                                                                                  
                                                                                                                                
9:17:35 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
9:17:48 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to report  CSHB  246(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  246(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation and with  a previously published fiscal                                                                    
impact  note: FN3(DOT),  and a  previously published  fiscal                                                                    
impact note FN4(DOT).                                                                                                           
                                                                                                                                
CS FOR HOUSE BILL NO. 258(FIN)                                                                                                
                                                                                                                                
     "An Act directing the  Department of Transportation and                                                                    
     Public  Facilities to  develop and  implement standards                                                                    
     and  operating  procedures, to  evaluate  site-specific                                                                    
     use plans,  and to  designate project  areas concerning                                                                    
     gravel   or   other   aggregate   material   containing                                                                    
     naturally  occurring asbestos;  authorizing  use on  an                                                                    
     interim  basis of  gravel or  other aggregate  material                                                                    
     containing  naturally  occurring asbestos  for  certain                                                                    
     transportation   projects    and   public   facilities;                                                                    
     providing immunity  for the  state and  for landowners,                                                                    
     extractors,  suppliers,  transporters, and  contractors                                                                    
     for  certain actions  or claims  arising in  connection                                                                    
     with   the  use   of  gravel   or  aggregate   material                                                                    
     containing  naturally  occurring  asbestos  in  certain                                                                    
     areas;   requiring   contractors  to   report   certain                                                                    
     asbestos-   related   data   to   the   Department   of                                                                    
     Transportation  and  Public Facilities;  and  providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
9:18:20 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:19:26 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:19:41 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute  for  HB  258, Work  Draft  27-LS0400\Q  (Nauman,                                                                    
4/9/12).                                                                                                                        
                                                                                                                                
Co-Chair Stedman OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
9:20:01 AM                                                                                                                    
                                                                                                                                
DARWIN PETERSON, STAFF, SENATOR  BERT STEDMAN, explained the                                                                    
changes in the new committee  substitute. He stated that the                                                                    
legislative  findings language  had  been  removed from  the                                                                    
bill; a  letter of  legislative findings and  purposes would                                                                    
be drafted  by the committee  by request of the  sponsor. He                                                                    
relayed that  Page 7, lines  21 through 24 had  been changed                                                                    
to state:                                                                                                                       
                                                                                                                                
     (2) the completed project will  not use gravel or other                                                                    
     aggregate   material  containing   naturally  occurring                                                                    
     asbestos  for  a  surface  application  except  if  the                                                                    
     material  to be  used  for the  surface application  is                                                                    
     treated  or bound  with a  surface compound,  including                                                                    
     chip seal or asphalt, approved by the department.                                                                          
                                                                                                                                
Mr.  Peterson   stated  that  dust  was   not  created  when                                                                    
naturally occurring asbestos was included in a chip seal.                                                                       
                                                                                                                                
9:21:35 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman REMOVED. There  being NO FURTHER OBJECTION,                                                                    
Work Draft 27-LS0400\Q was ADOPTED.                                                                                             
                                                                                                                                
9:21:43 AM                                                                                                                    
                                                                                                                                
BRODIE   ANDERSON,  STAFF,   REPRESENTATIVE  REGGIE   JOULE,                                                                    
explained  that the  bill would  allow  communities to  move                                                                    
forward using  naturally occurring asbestos gravel  when the                                                                    
aggregate material proved  to be the only  option. He stated                                                                    
that communities  could request  that certain land  could be                                                                    
designated  a  naturally  occurring  delineation  zone,  and                                                                    
within  that zone  aggregate  material  that contained  more                                                                    
than .25  by mass volume naturally  occurring asbestos would                                                                    
be  allowed to  be used  a construction  material. He  added                                                                    
that in communities where no  one could step forward to make                                                                    
the  request, the  state could  create  a zone  in order  to                                                                    
complete projects. He furthered  that within the delineation                                                                    
zone  contractors  would  be  required  to  submit  a  site-                                                                    
specific plan that described how  the material would be used                                                                    
and how  public safety would  be ensured. He added  that the                                                                    
bill would  define an  analytical threshold  where naturally                                                                    
occurring  asbestos began  in gravel;  .25  by mass  volume,                                                                    
material below that level would be considered aggregate.                                                                        
                                                                                                                                
9:23:47 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  discussed the fiscal notes  in the packet.                                                                    
He noted that public testimony had previously been heard.                                                                       
                                                                                                                                
9:24:27 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  MOVED to report  SCS CSHB 258(FIN)  out of                                                                    
committee with individual  recommendations, the accompanying                                                                    
fiscal  notes, and  with a  legislative  findings Letter  of                                                                    
Intent  from the  Senate Finance  Committee. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
9:24:55 AM                                                                                                                    
                                                                                                                                
SCS CSHB 258 was REPORTED out  of committee with a "do pass"                                                                    
recommendation and  with a previously published  zero fiscal                                                                    
note: FN1(DLWD),  a previously published fiscal  impact note                                                                    
FN3(DHSS),   a  previously   published  zero   fiscal  note:                                                                    
FN4(DOL),  a  previously  published zero  fiscal  note:  FN5                                                                    
(DNR), a previously published  fiscal impact note: FN6(DEC),                                                                    
and a previously published fiscal impact note: FN7(DOT).                                                                        
                                                                                                                                
CS FOR HOUSE BILL NO. 298(FIN)                                                                                                
                                                                                                                                
     "An Act exempting quarry rock, sand and gravel, and                                                                        
     marketable earth mining operations from the mining                                                                         
    license tax; and providing for an effective date."                                                                          
                                                                                                                                
9:25:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL  SEATON, explained  that the  bill would                                                                    
exempt  the   mining  license  tax  from   sand  and  gravel                                                                    
operations.                                                                                                                     
                                                                                                                                
9:25:35 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
9:25:45 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to report  CSHB  298(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
9:25:54 AM                                                                                                                    
                                                                                                                                
CSHB  298(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation  and with  a previously  published zero                                                                    
fiscal  note: FN1(DNR),  and a  previously published  fiscal                                                                    
impact note: FN3(DOR).                                                                                                          
                                                                                                                                
CS FOR HOUSE BILL NO. 302(FIN) am                                                                                             
                                                                                                                                
     "An  Act requiring  each campus  of  the University  of                                                                    
     Alaska  to apply  to be  included  on the  contribution                                                                    
     list for  contributions from permanent  fund dividends;                                                                    
     requiring a  university to pay  an application  fee for                                                                    
     each campus separately listed  on the contribution list                                                                    
     for  contributions from  permanent fund  dividends; and                                                                    
     repealing  certain  audit   requirements  for  entities                                                                    
     receiving    contributions    from    permanent    fund                                                                    
     dividends."                                                                                                                
                                                                                                                                
9:26:13 AM                                                                                                                    
REPRESENTATIVE PAUL  SEATON, explained  that the  bill would                                                                    
eliminate  the audit  provision from  the Pick,  Click, Give                                                                    
program for Permanent Fund Dividend contributions.                                                                              
                                                                                                                                
9:26:47 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
9:26:55 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  MOVED to  report CSHB  302(FIN) am  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB 302(FIN)  am was REPORTED  out of committee with  a "do                                                                    
pass" recommendation  and with  a previously  published zero                                                                    
fiscal note: FN1(DOR).                                                                                                          
                                                                                                                                
HOUSE BILL NO. 60                                                                                                             
                                                                                                                                
     "An Act relating to aquatic farm permitting involving                                                                      
     geoducks and to geoduck seed transfers between                                                                             
     certified hatcheries and aquatic farms."                                                                                   
                                                                                                                                
9:27:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL  SEATON, explained that  the legislation                                                                    
would allow  for geoduck farming  in and around the  Gulf of                                                                    
Alaska.                                                                                                                         
                                                                                                                                
9:27:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
9:28:10 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  HB 60  out of  committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
HB  60  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation  and  with   two  previously  published  zero                                                                    
fiscal notes: FN3(DNR) and FN4(DFG).                                                                                            
                                                                                                                                
HOUSE BILL NO. 360                                                                                                            
                                                                                                                                
     "An  Act enacting  the  Interstate  Mining Compact  and                                                                    
     relating  to the  compact; relating  to the  Interstate                                                                    
     Mining  Commission;  and  providing  for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:29:06 AM                                                                                                                    
                                                                                                                                
NANCY MANLY, STAFF, REPRESENTATIVE  BOB LYNN, explained that                                                                    
HB 360 would authorize the  state to join and participate in                                                                    
the  Interstate Mining  Compact Commission.  She added  that                                                                    
the commission was a coalition of 24 mining states.                                                                             
                                                                                                                                
9:29:43 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  discussed the  fiscal note in  the packet.                                                                    
He noted that public testimony had been previously taken.                                                                       
                                                                                                                                
9:29:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  MOVED to  report HB  360 out  of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
9:30:10 AM                                                                                                                    
                                                                                                                                
HB  360 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with   a  previously  published  fiscal                                                                    
impact note: FN2 (HFIN/DNR).                                                                                                    
                                                                                                                                
HOUSE BILL NO. 366                                                                                                            
                                                                                                                                
     "An Act  establishing an  Alaska intrastate  mutual aid                                                                    
     system  and  relating  to  the  duties  of  the  Alaska                                                                    
     division of homeland  security and emergency management                                                                    
     and the  duties of the Alaska  State Emergency Response                                                                    
     Commission."                                                                                                               
                                                                                                                                
9:30:50 AM                                                                                                                    
                                                                                                                                
MICHAEL PASCHALL, STAFF,  REPRESENTATIVE ERIC FEIGE, renewed                                                                    
the ethics  disclosures that he  had established  during the                                                                    
first hearing  of the  bill [April  12, 2012].  He explained                                                                    
that the  legislation would  establish an  intrastate mutual                                                                    
aid  compact  between   political  subdivisions  within  the                                                                    
state.                                                                                                                          
                                                                                                                                
9:31:10 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  MOVED to  report HB  366 out  of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
9:31:22 AM                                                                                                                    
                                                                                                                                
HB  366 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation and  with a previously published  zero fiscal                                                                    
note: FN1(DMVA)                                                                                                                 
                                                                                                                                
CS FOR HOUSE BILL NO. 21(FIN)                                                                                                 
                                                                                                                                
     "An Act relating to the membership of the Statewide                                                                        
     Suicide Prevention Council."                                                                                               
                                                                                                                                
9:32:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ANNA   FAIRCLOUGH,   explained   that   the                                                                    
legislation  would add  one  member as  well  as a  military                                                                    
presence  on  the  Alaska Suicide  Prevention  Council.  She                                                                    
furthered  that  the bill  provided  the  flexibility for  a                                                                    
youth member to serve until the age of 24.                                                                                      
                                                                                                                                
Co-Chair Stedman discussed the fiscal note in the packet.                                                                       
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  report  CSHB  21(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB 21(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation and  with a new  fiscal impact note  from the                                                                    
Department of Health and Social Services.                                                                                       
                                                                                                                                
SENATE BILL NO. 217                                                                                                           
                                                                                                                                
     "An Act establishing procedures and guidelines for                                                                         
     auditing pharmacy records; and providing for an                                                                            
     effective date."                                                                                                           
                                                                                                                                
9:33:50 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute  for  SB  217, Work  Draft  27-LS1411\I  (Martin,                                                                    
4/10/12).                                                                                                                       
                                                                                                                                
9:33:59 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
9:34:05 AM                                                                                                                    
                                                                                                                                
SENATOR DENNIS  EGAN, explained that SB  217 would establish                                                                    
procedures and guidelines for  auditing pharmacy records and                                                                    
holding all  pharmacies to equal  standards. He  stated that                                                                    
the legislation  had been introduced  by the request  of the                                                                    
Alaska Pharmacists Association.                                                                                                 
                                                                                                                                
9:34:53 AM                                                                                                                    
                                                                                                                                
DANA OWEN, STAFF, SENATOR DENNIS  EGAN, detailed the changes                                                                    
in version I of the legislation.                                                                                                
                                                                                                                                
9:35:28 AM                                                                                                                    
                                                                                                                                
Mr. Owen. explained that on Page  1, line 8, the word "such"                                                                    
had been  added in  replacement of the  word "those".  A new                                                                    
paragraph had been added to Page 2, line 6:                                                                                     
     (3)  an  insurer,  managed care  company,  hospital  or                                                                    
     medical  service  corporation,  third-party  payor,  or                                                                    
     pharmacy  benefits manager  may  not  conduct an  audit                                                                    
     within 90 days  after an audit in which  no errors were                                                                    
     found;  in  this paragraph,  "error"  does  not mean  a                                                                    
     clerical error, record  keeping error, or typographical                                                                    
     error  unless  the auditor  finds  proof  of intent  to                                                                    
     commit fraud;                                                                                                              
                                                                                                                                
Mr. Owen  continued with  the changes. Page  2, line  24 had                                                                    
been changed to  the following to clarify the  intent of the                                                                    
original bill:                                                                                                                  
                                                                                                                                
     (9) calculations  of overpayment by an  auditor may not                                                                    
     include dispensing  fees unless a prescription  was not                                                                    
     dispensed,   a   physician  denied   authorization   to                                                                    
     dispense the  prescription, or the  dispensing violated                                                                    
     a term of a contract;                                                                                                      
                                                                                                                                
Mr. Owen  explained that  Page 2, lines  31 through  Page 3,                                                                    
line 4 replaced a paragraph from the original bill:                                                                             
                                                                                                                                
     (11)  to the  extent that  an audit  finds clerical  or                                                                    
     record  keeping  errors  in   a  required  document  or                                                                    
     record, the  pharmacy may not be  subject to recoupment                                                                    
     unless there is proof of  intent to commit fraud or the                                                                    
     clerical  or record  keeping  error  results in  actual                                                                    
     financial  harm to  an insurer,  managed care  company,                                                                    
     hospital or medical services corporation, third-party                                                                      
     payor, pharmacy benefits manager, or a customer;                                                                           
                                                                                                                                
Mr. Owen stated  that Page 3, line 7  reflected the addition                                                                    
of the words,  "from the date of completion of  the audit to                                                                    
the delivery  date of the  preliminary audit  report, unless                                                                    
an  auditor finds  proof  of intent  to  commit fraud";  the                                                                    
language  applied to  the interest  that accrued  during the                                                                    
time an  audit was  being carried out.  Paragraph 19  of the                                                                    
same  page was  a  new paragraph  that  stated that  patient                                                                    
information  accessed   in  the  course  of   an  audit  was                                                                    
confidential and  could not be used  for marketing purposes.                                                                    
He stated  that the  effective date  of the  legislation had                                                                    
been changed to January 1, 2013.                                                                                                
                                                                                                                                
9:38:16 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  REMOVED  his OBJECTION.  There  being  NO                                                                    
FURTHER OBJECTION, Work Draft 27-LS1411\I was ADOPTED.                                                                          
9:38:46 AM                                                                                                                    
                                                                                                                                
Mr. Owen remarked  that SB 217 sought to  achieve fair audit                                                                    
standards that allowed for  adequate auditing of pharmacies;                                                                    
while  reigning   in  unfair,   and  often   abusive,  audit                                                                    
practices.  He stated  that it  was important  to understand                                                                    
that Alaska's  pharmacies were presented  "take it  or leave                                                                    
it"   contracts   by   pharmacy  benefit   managers   (PBM).                                                                    
Pharmacies  must take  the contracts  if they  wanted to  be                                                                    
paid by their customer's  medical plans for the prescription                                                                    
drugs  that  the  pharmacies dispensed.  He  furthered  that                                                                    
contract terms  could, and often were,  changed unilaterally                                                                    
by the PBM  arbitrarily. He stated that it  was not possible                                                                    
for small  independent pharmacies to negotiate  better audit                                                                    
terms.  Among the  most  abusive practices  was  the use  of                                                                    
extrapolation to determine how much  a PBM may have overpaid                                                                    
a  pharmacy;  meaning  that  if  an  audit  found  that  the                                                                    
prescription  of  a certain  drug  was  overbilled, the  PBM                                                                    
could assert  that every  similar prescription  was likewise                                                                    
overbilled,  and  then  calculate without  examining  actual                                                                    
dispensing   records  how   many   such  prescriptions   the                                                                    
Pharmacist  was   likely  to   have  filled  and   use  that                                                                    
calculated  number   to  determine   the  amount   that  was                                                                    
recoverable. Mr. Owen relayed  that auditors could, and did,                                                                    
take typographical  errors as  errors of  fact and  proof of                                                                    
fraud.  Dispensing   fees  (amounts  paid  over   and  above                                                                    
reimbursement  costs of  drugs) could  and were  taken back,                                                                    
even in cases where a  prescription was legitimate, the drug                                                                    
dispensed  as  prescribed,  and   only  the  amount  of  the                                                                    
reimbursed cost was at issue.                                                                                                   
                                                                                                                                
Mr. Owen explained that the  bill would also place limits on                                                                    
when an audit  could be performed, the  frequency of audits,                                                                    
the length of  time an audit could look back,  the time that                                                                    
elapsed between  audit completion  and a  preliminary report                                                                    
was given to the pharmacy and  the length of time to deliver                                                                    
a final  report. None of  the standards were yet  written in                                                                    
statute.  Finally,  the  bill  would  keep  patient  records                                                                    
required  during an  audit confidential.  This would  ensure                                                                    
that PBM  knowledge of individual patient  prescription drug                                                                    
usage could  not be shared  with the arm of  the corporation                                                                    
that retailed the  drugs, and prevented the  retail arm from                                                                    
contacting  individuals  with  offers  that  undercut  local                                                                    
pharmacies.  He  noted that  the  bill  was based  on  model                                                                    
legislation that had  been adopted in 18 states,  3 of which                                                                    
had enacted the  laws during the time-period  of the current                                                                    
the legislative session: Utah, Kentucky, and Indiana.                                                                           
                                                                                                                                
9:42:16 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
Co-Chair Stedman OPENED public testimony.                                                                                       
                                                                                                                                
9:42:31 AM                                                                                                                    
                                                                                                                                
JIM PUCKETT, DIRECTOR, DIVISION  OF RETIREMENT AND BENEFITS,                                                                    
DEPARTMENT   OF   ADMINISTRATION,   expressed   concern   in                                                                    
recognition of the  department's fiduciary responsibilities.                                                                    
He  pointed  out  to  the  committee  Page  2,  line  6.  He                                                                    
expressed  that the  department had  reservations concerning                                                                    
the  responsibility of  the  burden of  proof  to show  that                                                                    
there had  been intent to  commit fraud. He stated  that the                                                                    
language was thought  by the department to  be overly broad,                                                                    
and   that   the   responsibility  should   lie   with   law                                                                    
enforcement. He furthered that the  department did not agree                                                                    
that the  legislation should  limit the  timeframe specified                                                                    
in  an  existing agreement  with  two  business parties,  as                                                                    
written on  Page 2, line  4. He suggested adding:  "Unless a                                                                    
longer time  period is specified  in a contract  between the                                                                    
pharmacist  and the  insurer, manager  company, hospital  or                                                                    
medical service corporation,  third-party payor, or pharmacy                                                                    
benefit manager." He directed attention  to Page 2, line 31,                                                                    
and expressed  departmental concerns that the  language was,                                                                    
again, overly  broad. He  said that the  proof of  intent to                                                                    
commit fraud  was an  unreasonable burden  for an  audit. He                                                                    
continued  to Page  3 line  7. He  said that  the department                                                                    
believed  that there  was a  time  value of  money that  was                                                                    
universally   understood;  that   removing  interest   would                                                                    
unnecessarily  reduce  a   normal  consequence  for  errors,                                                                    
overcharging, stealing, or committing  fraud. He stated that                                                                    
the department  believed that the  language on Page  3, line                                                                    
10  was too  broad  because it  required  the department  to                                                                    
accept any record, documented phone  calls, or other written                                                                    
electronic  record  as  proof   that  the  prescription  was                                                                    
delivered  as  ordered by  the  prescriber.  He shared  that                                                                    
computers   and   phone   logs    could   be   altered,   or                                                                    
counterfeited, and  did not believe it  was unreasonable for                                                                    
the department  to require  specific business  practices. He                                                                    
relayed that the  department wished to add a  phrase to Page                                                                    
3,  line  29 that  would  state,  "or  any contractor  of  a                                                                    
governmental agency."  He suggested that the  effective date                                                                    
be changed  in the  interest of  the time  it would  take to                                                                    
review contracts.                                                                                                               
                                                                                                                                
9:47:26 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  asked if Department of  Administration had                                                                    
participated in the drafting of the bill.                                                                                       
                                                                                                                                
9:47:50 AM                                                                                                                    
                                                                                                                                
Mr.  Puckett   responded  that  the   administration  wanted                                                                    
language  added  to  the  bill   in  order  to  address  the                                                                    
aforementioned concerns.                                                                                                        
                                                                                                                                
9:48:01 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:48:50 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:48:52 AM                                                                                                                    
                                                                                                                                
Senator Egan  queried why  the administration  was proposing                                                                    
changes so  late in  the process.  Mr. Puckett  replied that                                                                    
many  of  the  changes  had been  recommended  during  prior                                                                    
hearings  on  the bill.  Senator  Egan  furthered that  some                                                                    
changes had been discussed in  committee, but that the ideas                                                                    
offered presently  had not been  discussed. He  wondered why                                                                    
the department  had suddenly taken issue  with the effective                                                                    
date of the bill.                                                                                                               
                                                                                                                                
9:49:37 AM                                                                                                                    
                                                                                                                                
Senator Egan queried why it  took the administration so long                                                                    
to figure out a course of action.                                                                                               
                                                                                                                                
9:49:56 AM                                                                                                                    
                                                                                                                                
Mr. Puckett  replied that the  recommended changes  would be                                                                    
better  for the  pharmacies  and the  administrators of  the                                                                    
health plans.  He said  that the  administration appreciated                                                                    
the changes that  were made to the effective  date, but that                                                                    
more  changes were  needed to  meet  recommendations of  the                                                                    
department.                                                                                                                     
                                                                                                                                
9:50:14 AM                                                                                                                    
                                                                                                                                
Senator  Egan  commented  that major  and  minor  pharmacies                                                                    
throughout  the state  had provided  testimony and  ideas to                                                                    
improve  the  legislation.  He  was  disappointed  that  the                                                                    
administration had  taken so long  to present  the suggested                                                                    
changes.                                                                                                                        
                                                                                                                                
9:50:45 AM                                                                                                                    
                                                                                                                                
Senator McGuire  wondered if  the language  in the  bill was                                                                    
similar to legislation that had come out of other states.                                                                       
                                                                                                                                
Senator  Egan replied  that similar  legislation from  other                                                                    
states had  been studied while  crafting the bill.  He noted                                                                    
that the legislation  had been curtailed to  needs that were                                                                    
unique to Alaska.                                                                                                               
                                                                                                                                
9:51:31 AM                                                                                                                    
                                                                                                                                
Senator  McGuire  thought  that the  bill  required  further                                                                    
changes. She understood  that audits could be  taxing to the                                                                    
smaller pharmacies. She  noted that the hearing  was late in                                                                    
the legislative process,  but hoped that the   bill could be                                                                    
held for further review.                                                                                                        
                                                                                                                                
Co-Chair Stedman assured the committee  that, this being the                                                                    
first hearing of the bill, it  was unlikely that it would be                                                                    
moved out of committee at this time.                                                                                            
                                                                                                                                
9:52:11 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:53:23 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Stedman  stated that that  Senator Egan  would work                                                                    
with the administration on its concerns regarding SB 217.                                                                       
                                                                                                                                
SB  217  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 286(FIN)                                                                                                
                                                                                                                                
     "An Act providing  for and relating to  the issuance of                                                                    
     general obligation bonds for  the purpose of paying the                                                                    
     cost  of state  transportation projects;  and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
9:56:35 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute  for  HB  286, Work  Draft  27-GH2769\D  (Kirsch,                                                                    
4/12/12)                                                                                                                        
                                                                                                                                
9:56:44 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
9:56:50 AM                                                                                                                    
                                                                                                                                
WESTON EILER,  STAFF, SENATOR  BERT STEDMAN,  explained that                                                                    
the  new  committee  substitute  reflected  grammatical  and                                                                    
formatting changes.  He directed  attention to Page  2, line                                                                    
8,  which  listed  the projects  reordered  in  alphabetical                                                                    
order  and made  conforming changes  to the  project titles.                                                                    
The projects and  the amounts remained the  same. The second                                                                    
change was found on Page 3,  line 5; again the projects were                                                                    
reordered for  formatting, but no  changes were made  in the                                                                    
projects or the project amounts.                                                                                                
                                                                                                                                
Co-Chair  Stedman  REMOVED  his OBJECTION.  There  being  NO                                                                    
FURTHER OBJECTION, Work Draft 27-GH2769\D was ADOPTED.                                                                          
                                                                                                                                
9:58:05 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman explained  that the  legislation had  been                                                                    
worked   on  by   both  bodies   and  had   been  originally                                                                    
recommended  by the  administration. He  furthered that  the                                                                    
committee,  in  conjunction  with  the  administration,  was                                                                    
working to move the bill forward.                                                                                               
                                                                                                                                
Co-Chair Stedman discussed the fiscal note in the packet.                                                                       
                                                                                                                                
CSHB 286(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 282(FIN)                                                                                                
                                                                                                                                
     "An  Act  relating   to  applying  military  education,                                                                    
     training, and service  credit to occupational licensing                                                                    
     and  certain  postsecondary  education  and  employment                                                                    
     training  requirements;   providing  for   a  temporary                                                                    
     occupational  license  for qualified  military  service                                                                    
     members; and providing for an effective date."                                                                             
                                                                                                                                
9:59:07 AM                                                                                                                    
                                                                                                                                
AARON SCHROEDER,  STAFF, REPRESENTATIVE BILL  THOMAS, shared                                                                    
that  the goal  of the  legislation was  to make  separating                                                                    
service member  transitions quick and effective.  He relayed                                                                    
that Alaska  had seen approximately 1200  separating service                                                                    
members in  the past  two years, many  of which  had already                                                                    
received quality  training through  the military  that could                                                                    
transfer  to  licensed  civilian professions.  He  explained                                                                    
that  the  bill  requested   the  Division  of  Professional                                                                    
Licensing,  University  of  Alaska, and  the  Department  of                                                                    
Labor  to  evaluate  military training  and  education,  and                                                                    
assign   credit  where   credit   was  appropriate   without                                                                    
compromising current standards.                                                                                                 
                                                                                                                                
10:00:10 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
Co-Chair Stedman OPENED public testimony.                                                                                       
                                                                                                                                
10:00:44 AM                                                                                                                   
                                                                                                                                
MARK   SAN-SOUCI,  REGIONAL   STATE  LIAISON   OFFICE,  U.S.                                                                    
DEPARTMENT  OF  DEFENSE,  WASHINGTON  (via  teleconference),                                                                    
testified  in  support   of  HB  282.  He   noted  that  the                                                                    
legislation was  the companion to  SB 150, which  the senate                                                                    
had passed on February 1,  2012. He stated that 1286 service                                                                    
members retired and came back to  the state in FY11, and the                                                                    
department  believed that  1 million  service members  would                                                                    
separate and go back to the states within the next 5 years.                                                                     
                                                                                                                                
10:01:54 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman CLOSED public testimony.                                                                                       
                                                                                                                                
CSHB 282(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 301(FIN)                                                                                                
                                                                                                                                
     "An  Act  relating  to enforcement  of  boating  safety                                                                    
     statutes;  amending  the  termination date  of  certain                                                                    
     statutes   relating   to   the  use,   operation,   and                                                                    
     regulation of  boats, a uniform state  waterway marking                                                                    
     system, and civil liability  for boat owners; providing                                                                    
     for an  effective date by  amending the  effective date                                                                    
     of secs. 3,  5, 7, 9, 11,  14, 16, 18, 20,  23, 26, and                                                                    
     27, ch. 28, SLA 2000,  as amended; and providing for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
ASTRID  LIEVANO,   STAFF,  REPRESENTATIVE   ALAN  AUSTERMAN,                                                                    
explained that the legislation would  repeal the sunset date                                                                    
on the  Alaska Boating Safety  Program. She stated  that the                                                                    
program  currently had  2 sunset  dates; the  first repealed                                                                    
the Boating Safety  Act in the event that the  state did not                                                                    
receive anticipated  federal funds, the second  repealed the                                                                    
program on  July 1,  2013. She relayed  that the  Kids Don't                                                                    
Float loaner lifejacket program was part of the program.                                                                        
                                                                                                                                
10:03:10 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
CSHB 301(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 204                                                                                                            
                                                                                                                                
     "An  Act  relating  to   the  State  Procurement  Code,                                                                    
     including the  use of small procurement  provisions for                                                                    
     certain  amounts of  leased space,  the requirement  of                                                                    
     Alaska  business license  proof for  Alaska bidder  and                                                                    
     other  procurement  preferences,  the  registration  of                                                                    
     construction   contract  bidders   and  offerors,   the                                                                    
     establishment and  maintenance of lists of  persons who                                                                    
     want  to provide  supplies or  services  to the  state,                                                                    
     state    agencies,    and   state    instrumentalities,                                                                    
     electronic bids and  proposals, small procurements, and                                                                    
     writings; and providing for an effective date."                                                                            
                                                                                                                                
REPRESENTATIVE ANNA FAIRCLOUGH, explained  that HB 204 would                                                                    
clarify the  Alaska business license requirement  for Alaska                                                                    
bidder's  preferences   for  competitive  sealed   bids  and                                                                    
proposals. It would increase the  dollar threshold for small                                                                    
procurements for  supply services and  professional services                                                                    
from $50  thousand to $100 thousand,  for construction; $100                                                                    
thousand to $200 thousand, and  for square lease space; 3000                                                                    
to 7000  square feet.  She furthered  that the  bill allowed                                                                    
for  electronic  bids  and   signatures  and  eliminated  an                                                                    
outdated  vendors  list. She  stated  that  he changes  were                                                                    
necessary in  order to prevent  failures in  the procurement                                                                    
process  and  to  assist Alaskan  bidders,  particularly  in                                                                    
rural areas.                                                                                                                    
                                                                                                                                
10:04:43 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
HB  204  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 205                                                                                                            
                                                                                                                                
     "An   Act  relating   to   state   and  public   entity                                                                    
     procurement,  including  the  State  Procurement  Code,                                                                    
     procurement preferences, and  contract awards; relating                                                                    
     to the  meaning of  'Alaska bidder'; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
10:05:19 AM                                                                                                                   
                                                                                                                                
Representative  Fairclough  explained   that  HB  205  would                                                                    
streamline the  procurement process, would  eliminate seldom                                                                    
used  employers  with disabilities  preference,  consolidate                                                                    
all procurement  preferences under one statute,  and clarify                                                                    
which preferences were cumulative and  those that may not be                                                                    
combined.                                                                                                                       
                                                                                                                                
10:05:55 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
HB  205  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 252(FIN)                                                                                                
                                                                                                                                
          "An Act exempting certain small businesses from                                                                       
          the corporate income tax; and providing for an                                                                        
          effective date."                                                                                                      
                                                                                                                                
10:06:31 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MIA COSTELLO,  testified that the legislation                                                                    
would exempt  certain small  qualifying businesses  from the                                                                    
states corporate  income tax until the  business reached $50                                                                    
million in  gross aggregate assets,  or after 10  years. She                                                                    
explained  that   the  definition  of  a   small  qualifying                                                                    
business could  found in  federal law.  She stated  that the                                                                    
hope was to attract businesses  that did not currently exist                                                                    
in  the  state.  The   businesses  would  eventually  become                                                                    
corporate tax payers.                                                                                                           
                                                                                                                                
10:07:32 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  asked  for   a  clarification  about  who                                                                    
qualified for the exemption.                                                                                                    
                                                                                                                                
Representative    Costello    responded   that    qualifying                                                                    
industries included:                                                                                                            
                                                                                                                                
   · Software development                                                                                                       
   · Bio-tech                                                                                                                   
   · Pharmaceuticals                                                                                                            
   · Tele-communications                                                                                                        
   · Super-conductors                                                                                                           
   · Business technologies and solutions                                                                                        
   · Media storage servers                                                                                                      
   · Video games                                                                                                                
                                                                                                                                
Co-Chair Stedman  understood that the legislation  was aimed                                                                    
at a targeted group.                                                                                                            
                                                                                                                                
Representative Costello replied in the affirmative.                                                                             
                                                                                                                                
10:08:09 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman discussed the fiscal notes in the packet.                                                                      
                                                                                                                                
Co-Chair Stedman OPENED public testimony.                                                                                       
                                                                                                                                
10:08:39 AM                                                                                                                   
                                                                                                                                
TYLER   ARNOLD,   CEO,   SIMPLY   SOCIAL,   Anchorage   (via                                                                    
teleconference), testified  in support of HB  252. He shared                                                                    
that he was a 19  year-old entrepreneur raised in Anchorage.                                                                    
He opined  that the state  had one of the  highest corporate                                                                    
tax  rates in  the  country. He  felt  that the  legislation                                                                    
would   help    to   strengthen   his    business's   global                                                                    
competitiveness.                                                                                                                
                                                                                                                                
Co-Chair Stedman CLOSED public testimony.                                                                                       
                                                                                                                                
CSHB 252(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
10:10:58 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:12:15 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 121(STA)                                                                                               
                                                                                                                                
     "An Act relating  to  new defined benefit  tiers in the                                                                    
     public employees'  retirement system and  the teachers'                                                                    
     retirement  system;  providing   certain  employees  an                                                                    
     opportunity to  choose between the defined  benefit and                                                                    
     defined  contribution plans  of  the public  employees'                                                                    
     retirement system and  the teachers' retirement system;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
Co-Chair  Hoffman  MOVED  to   report  SB  121(STA)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Co-Chair Stedman read the fiscal notes in the packet.                                                                           
                                                                                                                                
There being NO OBJECTION, CSSB  121(STA) was REPORTED out of                                                                    
committee  with  a  "do  pass"  recommendation  and  with  a                                                                    
previously  published fiscal  impact note:  FN2(DOR), a  new                                                                    
fiscal impact  note from  the Department  of Administration,                                                                    
and a new  indeterminate fiscal note from  the Department of                                                                    
Administration.                                                                                                                 
                                                                                                                                
10:13:23 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:13:56 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE CONCURRENT RESOLUTION NO. 23(FIN)                                                                                
                                                                                                                                
     Establishing and  relating to the Alaska  Arctic Policy                                                                    
     Commission.                                                                                                                
                                                                                                                                
CSHCR 23(FIN) was SCHEDULED but not HEARD.                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 276(FIN)                                                                                                
                                                                                                                                
     "An Act providing for a  credit against the oil and gas                                                                    
     production  tax  for   costs  incurred  for  conducting                                                                    
     seismic  exploration   and  drilling  certain   oil  or                                                                    
     natural  gas  exploration   wells  in  certain  basins;                                                                    
     relating  to the  determination of  the production  tax                                                                    
     value  of oil  and gas  production; and  relating to  a                                                                    
     special tax  rate for new  oil or gas  production south                                                                    
     of 68 degrees North latitude."                                                                                             
                                                                                                                                
CSHB 276(FIN) was SCHEDULED but not HEARD.                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
10:14:20 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:14 AM.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 217 Examples of Abusive Auditing Practices in Alaska, Alaska Pharmacists Association 021012.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
SB 217 Examples of State Audit Laws, Alaska Pharmacists Association, 020512.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
SB 217 lttr supporting Fred Meyer FM 040412.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
SB 217 lttr supporting, Alaska Pharmacists Association, 020312.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
SB 217 Model Audit Guidelines for Pharmacy Claims by the Academy of Managed Care Pharmacy, January 2012.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
SB 217 Sectional Analysis v B.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
SB 217 Summary of Changes, original to v B.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
SB 217 Survey of Community Pharmacies, National Community Pharmacists Association.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
SB 217 testimony opposing, Eric Douglas, CVS Caremark.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
HB 282 Kenai Written Testimony Packet.pdf SFIN 4/13/2012 9:00:00 AM
HB 282
HB 282_Sponser Statement.pdf SFIN 4/13/2012 9:00:00 AM
HB 282
HB 282_SupportingDoc2.pdf SFIN 4/13/2012 9:00:00 AM
HB 282
HB 301 - Alaska Boating Safety Program - Funding History.pdf SFIN 4/13/2012 9:00:00 AM
HB 301
HB301 - Sponsor Statement.pdf SFIN 4/13/2012 9:00:00 AM
HB 301
HB 204 Sectional Analysis.pdf SFIN 4/13/2012 9:00:00 AM
HB 204
HB 204 Sponsor Statement.pdf SFIN 4/13/2012 9:00:00 AM
HB 204
Alaska Chamber Support HB 205.pdf SFIN 4/13/2012 9:00:00 AM
HB 205
HB 205 Sponsor Statement.pdf SFIN 4/13/2012 9:00:00 AM
HB 205
HB 252 - Reference Information - 26 USC 1202.pdf SFIN 4/13/2012 9:00:00 AM
HB 252
Backup NenYF-BasinLocmap.pdf SFIN 4/13/2012 9:00:00 AM
HB 276
Explanation of changes version E to version K 4.9.12.pdf SFIN 4/13/2012 9:00:00 AM
HB 276
HB276 Oil Basin Map Final 3.20.12.pdf SFIN 4/13/2012 9:00:00 AM
HB 276
No Nenana Drilling Cost Report 010312.pdf SFIN 4/13/2012 9:00:00 AM
HB 276
Sponsor Statement revised 4.9.12.pdf SFIN 4/13/2012 9:00:00 AM
HB 276
HB 131 Version I.pdf SFIN 4/13/2012 9:00:00 AM
HB 131
HB 246 Version E.pdf SFIN 4/13/2012 9:00:00 AM
HB 246
HB 258 Version Q.pdf SFIN 4/13/2012 9:00:00 AM
HB 258
SB 217 blank v I 041012.PDF SFIN 4/13/2012 9:00:00 AM
SB 217
SB 217 Brown, Fred Testimony.pdf SFIN 4/13/2012 9:00:00 AM
SB 217
SCSCSHCR23(FIN)-4-13-12.pdf SFIN 4/13/2012 9:00:00 AM
HCR 23
HB 286 Version D.pdf SFIN 4/13/2012 9:00:00 AM
HB 286