Legislature(2015 - 2016)SENATE FINANCE 532

04/02/2015 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Presentation: Overview FY17 Operating Budget
+ SB 71 VACCINE CERTIFICATION FOR PHARMACISTS TELECONFERENCED
Heard & Held
+ SB 86 REFINED FUEL SURCHARGE; MOTOR FUEL TAX TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 72 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Moved SCS CSHB 72(FIN) Out of Committee
+= HB 73 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Moved SCS CSHB 73(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 2, 2015                                                                                            
                         2:05 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
2:05:58 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 2:05 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Peter Micciche, Vice-Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator   Cathy  Giessel,   Sponsor;  Scott   Watts,  Alaska                                                                    
Pharmacy  Association, Juneau;  Jason Tapley,  Self, Juneau;                                                                    
James Armstrong, Staff, Senator Pete Kelly.                                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Margaret  Soden,   Self,  Fairbanks;  Amber   Briggs,  Self,                                                                    
Soldotna;  Ryan Ruggles,  District  Pharmacy Manager,  Carrs                                                                    
Safeway,  Anchorage;  Barry  Christensen,  Co-Chair,  Alaska                                                                    
Pharmacists  Association  Legislative Committee,  Ketchikan;                                                                    
Erin Narus, Division of Health  Care Services, Department of                                                                    
Health and Social Services, Anchorage.                                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 71     VACCINE CERTIFICATION FOR PHARMACISTS                                                                                 
                                                                                                                                
          SB 71 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
SB 86     REFINED FUEL SURCHARGE; MOTOR FUEL TAX                                                                                
                                                                                                                                
          SB 86 was SCHEDULED but not HEARD.                                                                                    
                                                                                                                                
CSHB 72(FIN)                                                                                                                    
          APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          SCS CSHB 72(FIN) was REPORTED out of committee                                                                        
          with a "do pass" recommendation.                                                                                      
                                                                                                                                
CSHB 73(FIN)                                                                                                                    
          APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          SCS CSHB 73(FIN) was REPORTED out of committee                                                                        
          with a "do pass" recommendation.                                                                                      
                                                                                                                                
SENATE BILL NO. 71                                                                                                            
                                                                                                                                
     "An  Act  relating to  the  practice  of pharmacy;  and                                                                    
     relating to the administration  of vaccines and related                                                                    
     emergency medications."                                                                                                    
                                                                                                                                
2:06:27 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon discussed housekeeping.                                                                                      
                                                                                                                                
2:06:51 PM                                                                                                                    
                                                                                                                                
SENATOR CATHY GIESSEL, SPONSOR, provided a sponsor                                                                              
statement:                                                                                                                      
                                                                                                                                
     Currently,  Alaska pharmacists  require oversight  by a                                                                    
     medical doctor  or nurse practitioner to  oversee their                                                                    
     immunization  authority.  SB   71  will  give  already-                                                                    
     trained   and   certified  pharmacists   authority   to                                                                    
     immunize Alaska  adults and children without  having to                                                                    
     contract   with    often   hard-to-find   doctors/nurse                                                                    
     practitioners to oversee their immunization programs.                                                                      
                                                                                                                                
     This  bill  will  particularly  help  rural  pharmacies                                                                    
     increase  their  reach  to populations  who  often  see                                                                    
     their   pharmacist   more    often   than   a   medical                                                                    
     professional.  Consumers would  enjoy more  flexibility                                                                    
     with their schedules and cost  savings by being able to                                                                    
     access    their    local   pharmacist    for    crucial                                                                    
     immunizations.                                                                                                             
     SB  71  expands  authority for  Alaska  pharmacists  to                                                                    
     independently administer all  vaccines and would reduce                                                                    
     burdensome  collaborative practice  agreements. Studies                                                                    
     have  shown  that  states   in  which  pharmacists  are                                                                    
     granted  broad authority  to  administer vaccines  have                                                                    
     higher immunization rates.                                                                                                 
                                                                                                                                
     In  2013 Alaskan  pharmacists administered  over 13,000                                                                    
     flu vaccines  and this legislation  would significantly                                                                    
     improve  access to  additional vaccinations  and public                                                                    
     health as  a result. I  ask for your support  to expand                                                                    
     the   authority   of   pharmacists   to   independently                                                                    
     administer vaccinations.                                                                                                   
                                                                                                                                
Senator  Giessel  added that  SB  71  would provide  already                                                                    
trained,  and   certified,  pharmacists  the   authority  to                                                                    
immunize  Alaska  adults  and children,  without  having  to                                                                    
contract with  physicians or nurse practitioners  to oversee                                                                    
their programs.  She said that  since 2005,  all pharmacists                                                                    
had  been  trained in  immunization  procedures  as part  of                                                                    
their  education program,  pharmacists  who attended  school                                                                    
before  2005,  would be  required  to  take an  immunization                                                                    
training  program approved  by  the Board  of Pharmacy.  She                                                                    
highlighted the  details of the training.  She believed that                                                                    
the bill would be particularly  helpful in rural areas where                                                                    
the  populations encountered  their  pharmacists more  often                                                                    
that  their medical  providers. She  opined that  Alaska had                                                                    
the lowest  immunization rates in  the country;  studies had                                                                    
shown that in states where  pharmacists had the authority to                                                                    
administer medications  immunization rates were  higher. She                                                                    
stated  that   all  of  the   vaccinations  that   would  be                                                                    
administered  by  a  pharmacist  would be  reported  to  the                                                                    
statewide data program, VacTrack.                                                                                               
                                                                                                                                
2:09:50 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
2:10:29 PM                                                                                                                    
                                                                                                                                
SCOTT WATTS, ALASKA  PHARMACY ASSOCIATION, JUNEAU, testified                                                                    
in support of SB 71. He  related that Alaska was rated below                                                                    
the  national level  for immunizations.  He reiterated  that                                                                    
pharmacists were  trained in  immunizations and  were acting                                                                    
as  a  resource  for   the  public  concerning  immunization                                                                    
accessibility  and  travel   schedules.  He  commented  that                                                                    
increased vaccination rates would  help to lower health care                                                                    
costs  in the  state. He  commented on  the fiscal  note and                                                                    
observed that it was a  one-time cost, which would be easily                                                                    
off-set by the lower health care costs.                                                                                         
                                                                                                                                
2:12:18 PM                                                                                                                    
                                                                                                                                
Senator Olson expressed concern  about adequate training for                                                                    
adverse  reactions  to  vaccinations, such  as  anaphylactic                                                                    
shock.                                                                                                                          
                                                                                                                                
2:14:18 PM                                                                                                                    
                                                                                                                                
Mr.  Watts replied  that  protocol  existed for  epinephrine                                                                    
injections  to halt  anaphylactic reactions.  He added  that                                                                    
the pharmacists that administered  the vaccinations were CPR                                                                    
certified.                                                                                                                      
                                                                                                                                
Senator  Olson clarified  that pharmacists  did not  receive                                                                    
the same  training as physicians.  He said  that pharmacists                                                                    
were not trained in intubation.                                                                                                 
                                                                                                                                
2:15:26 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:15:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Olson reiterated that most  pharmacists did not have                                                                    
the  same training  as physicians  and were  not trained  on                                                                    
intubation.                                                                                                                     
                                                                                                                                
Mr. Watts responded that he had  not meant to imply that the                                                                    
two had the same training.                                                                                                      
                                                                                                                                
Senator  Olson  spoke  to the  state's  lagging  vaccination                                                                    
numbers.  He said  that there  existed  the perception  that                                                                    
vaccines  delivered  in  multiple  sequences  over  a  short                                                                    
period  of  time could  result  in  adverse reactions,  like                                                                    
Sudden  Infant Death  Syndrome and  Autism,  but noted  that                                                                    
those theories had largely been debunked.                                                                                       
                                                                                                                                
2:17:51 PM                                                                                                                    
                                                                                                                                
MARGARET  SODEN,   SELF,  FAIRBANKS   (via  teleconference),                                                                    
testified  in   support  of  the  bill.   She  related  that                                                                    
pharmacies  in   her  community   were  open   evenings  and                                                                    
weekends, unlike medical  offices; additionally, pharmacists                                                                    
interacted   with    patients   more   often    than   other                                                                    
practitioners  because they  returned to  the pharmacy  on a                                                                    
regular basis.  She felt that  the legislation  would result                                                                    
in more  pharmacies offering vaccinations, which  would lead                                                                    
to more Alaskans being immunized.                                                                                               
                                                                                                                                
2:19:46 PM                                                                                                                    
                                                                                                                                
AMBER   BRIGGS,   SELF,   SOLDOTNA   (via   teleconference),                                                                    
testified in  support of the  legislation. She  related that                                                                    
she   was   a   pharmacist   and   had   administered   many                                                                    
vaccinations. She believed  that not providing immunizations                                                                    
would result in  adverse economic impacts to  the state. She                                                                    
opined that  the rates of  emergency room visits due  to the                                                                    
H1N1  flu  virus increased  when  people  did not  vaccinate                                                                    
against the  flu. She concluded the  allowing pharmacists to                                                                    
independently   administer   vaccinations  would   help   to                                                                    
decrease healthcare costs in the state.                                                                                         
                                                                                                                                
2:22:09 PM                                                                                                                    
                                                                                                                                
RYAN  RUGGLES,  DISTRICT  PHARMACY MANAGER,  CARRS  SAFEWAY,                                                                    
ANCHORAGE (via teleconference), testified  in support of the                                                                    
legislation.  He   echoed  the  comments  of   the  previous                                                                    
testifiers. He  believed that the  bill offered  convent and                                                                    
economical access to vaccinations.  He noted that pharmacies                                                                    
across the state already administered vaccinations.                                                                             
                                                                                                                                
2:24:48 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  whether shots were administered  on site                                                                    
at Carrs Safeway.                                                                                                               
                                                                                                                                
Mr. Ruggles indicated that  all immunizations were available                                                                    
except for Yellow Fever.                                                                                                        
                                                                                                                                
Co-Chair MacKinnon  asked whether the store  contracted with                                                                    
a doctor.                                                                                                                       
                                                                                                                                
Mr. Ruggles replied  that the store contracted  with a nurse                                                                    
practitioner through a collaborative practice agreement.                                                                        
                                                                                                                                
Co-Chair MacKinnon queried the cost of the contract.                                                                            
Mr.   Ruggles  responded   that  contract   agreements  with                                                                    
providers  varied. He  could not  provide the  specific cost                                                                    
offhand,  but noted  that the  price could  vary drastically                                                                    
between providers.                                                                                                              
2:25:51 PM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon   informed   the   committee   that   a                                                                    
representative  of  the  Department  of  Health  and  Social                                                                    
Services was available online for questions.                                                                                    
                                                                                                                                
2:26:08 PM                                                                                                                    
                                                                                                                                
BARRY CHRISTENSEN, CO-CHAIR,  ALASKA PHARMACISTS ASSOCIATION                                                                    
LEGISLATIVE   COMMITTEE,  KETCHIKAN   (via  teleconference),                                                                    
spoke  in favor  of the  legislation. He  believed that  the                                                                    
bill  would  provide  improved access  to  vaccinations  and                                                                    
improve public  health. He felt  that the fiscal  note could                                                                    
be  justified  by  the  healthcare  savings  that  would  be                                                                    
realized  by the  lesser number  of hospitalizations  due to                                                                    
the flu virus. He related  that, according to the Center for                                                                    
Disease Control (CDC), for every  $1 spent on vaccinations -                                                                    
$10 in healthcare  costs were saved. He noted  the letter of                                                                    
support from  the National  Association of  Trade Drugstores                                                                    
in member packets (copy on file).                                                                                               
                                                                                                                                
2:28:26 PM                                                                                                                    
                                                                                                                                
JASON  TAPLEY, SELF,  JUNEAU, testified  in  support of  the                                                                    
bill. He felt that the  legislation would increase access to                                                                    
vaccinations  for those  with disabilities  or other  travel                                                                    
constraints.                                                                                                                    
                                                                                                                                
2:29:39 PM                                                                                                                    
                                                                                                                                
Senator Olson  asked Mr. Tapley  what kind of  resources and                                                                    
equipment were available to the  pharmacists where he worked                                                                    
that addressed adverse reactions to vaccinations.                                                                               
                                                                                                                                
Mr.  Tapley  replied that  most  pharmacists  were train  in                                                                    
basic life  support; most pharmacies were  stocked with epi-                                                                    
pens and  Benadryl, which  could be  used in  the short-term                                                                    
until an ambulance arrived.                                                                                                     
                                                                                                                                
2:31:05 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
2:31:22 PM                                                                                                                    
                                                                                                                                
Senator Giessel commented  that the collaborative agreements                                                                    
that were in  place currently had been in  place since 1989.                                                                    
She   asserted  that   healthcare  education   had  evolved,                                                                    
pharmacists were now  required to earn PHD  degrees and were                                                                    
highly educated. She contended  that intubation was a highly                                                                    
refined  skill requiring  repeated practice  and was  a rare                                                                    
necessity.                                                                                                                      
                                                                                                                                
2:32:45 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy queried the fiscal note.                                                                                       
                                                                                                                                
Senator  Giessel  spoke  to  the fiscal  note  1,  from  the                                                                    
Department    of   Commerce,    Community,   and    Economic                                                                    
Development. She  stated that the regulatory  costs would be                                                                    
covered by the licensing fees.  She continued to fiscal note                                                                    
2, from the Department of  Health and Social Services, which                                                                    
reflected  a  capital  budget  cost  of  $50  thousand.  She                                                                    
referred  to  the audit  that  had  been completed  for  the                                                                    
department which  documented the  system deficits  and known                                                                    
non-compliance instances  for many  sections of  the state's                                                                    
Medicaid  management information  services. She  argued that                                                                    
the system used  for enrollment in and  payment for Medicaid                                                                    
needed a complete renovation.                                                                                                   
                                                                                                                                
2:34:31 PM                                                                                                                    
                                                                                                                                
Senator Olson agreed with Senator  Giessel assessment of the                                                                    
immunizations needs of the state.                                                                                               
                                                                                                                                
2:35:03 PM                                                                                                                    
                                                                                                                                
Senator Bishop asked whether there  was data which reflected                                                                    
the number of cases of  adverse reactions to vaccinations in                                                                    
the state.                                                                                                                      
                                                                                                                                
Senator Giessel  commented that  the data  would need  to be                                                                    
gathered.                                                                                                                       
                                                                                                                                
2:36:01 PM                                                                                                                    
                                                                                                                                
Senator Olson asked  whether the sponsor had  heard from any                                                                    
of the Native Health organizations in rural Alaska.                                                                             
                                                                                                                                
Senator Giessel responded in the negative.                                                                                      
Senator  Olson asked  whether  the administration  supported                                                                    
the legislation.                                                                                                                
                                                                                                                                
Senator Giessel replied that she did not know.                                                                                  
Senator Olson asked  whether the sponsor had  heard from the                                                                    
Alaska  State  Medical  Association   of  the  Alaska  State                                                                    
Medical Board.                                                                                                                  
                                                                                                                                
Senator Giessel said that she  had not received any negative                                                                    
feedback from either organization.                                                                                              
                                                                                                                                
2:37:10 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  commented that there  was representation                                                                    
from the state of Alaska available to answer questions.                                                                         
                                                                                                                                
2:37:45 PM                                                                                                                    
                                                                                                                                
ERIN NARUS, DIVISION OF HEALTH  CARE SERVICES, DEPARTMENT OF                                                                    
HEALTH AND SOCIAL  SERVICES, ANCHORAGE (via teleconference),                                                                    
stated that  the department did  not have a position  on the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Senator  Olson   asked  whether  the  fiscal   notes  seemed                                                                    
accurate.                                                                                                                       
                                                                                                                                
Ms.  Narus replied  that the  request in  fiscal note  2 was                                                                    
necessary in order to comply with federal requirements.                                                                         
                                                                                                                                
SB  71  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
2:39:19 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:30:56 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon handed the gavel over to Co-Chair Kelly.                                                                     
                                                                                                                                
CS FOR HOUSE BILL NO. 72(FIN)                                                                                                 
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain programs and  capitalizing funds; and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 73(FIN)                                                                                                 
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
3:31:12 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon MOVED to ADOPT Amendment 24(copy on                                                                          
file).                                                                                                                          
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
3:31:39 PM                                                                                                                    
                                                                                                                                
JAMES ARMSTRONG, STAFF, SENATOR PETE KELLY, discussed                                                                           
Amendment 24:                                                                                                                   
                                                                                                                                
     Page 1, line 2, following "funds;":                                                                                      
          Insert "amending appropriations"                                                                                    
                                                                                                                                
          Delete all material and insert:                                                                                       
          "(c)    The    amount   necessary,    after    the                                                                    
     appropriation made in sec. 28(c),  ch. 16, SLA 2014, as                                                                    
     amended  by sec.  30 of  this  Act, when  added to  the                                                                    
     balance of the public  education fund (AS 14.17.300) on                                                                    
     June 30,  2015, estimated  to be $151,000,000,  to fund                                                                    
     the total  amount for the  fiscal year ending  June 30,                                                                    
     2016, of  state aid calculated under  the public school                                                                    
     funding formula  under AS  14.17.41 O(b)  multiplied by                                                                    
     0. 959,  is appropriated from  the general fund  to the                                                                    
     public education fund (AS 14.17 .300)."                                                                                    
                                                                                                                                
                                                                                                                                
     Page 79, following line 29:                                                                                                
          Insert a new bill section to read:                                                                                    
     "*Sec. 30. Section 28(c), ch.  16, SLA 2014, is amended                                                                  
     to read:                                                                                                                   
          (c) The sum of $1,002,568,100 [$1,202,568,100] is                                                                   
     appropriated  from  the  general  fund  to  the  public                                                                    
     education fund (AS 14.17.300)."                                                                                            
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
      Page 80, line 6:                                                                                                          
          Delete "Section 31"                                                                                                   
          Insert "Sections 30 and 32"                                                                                           
          Delete "takes"                                                                                                        
          Insert "take"                                                                                                         
                                                                                                                                
     Page 80, line 8:                                                                                                           
          Delete "secs. 32 and 33"                                                                                              
          Insert "secs. 33 and 34"                                                                                              
                                                                                                                                
Mr. Armstrong  said that the change  would prorate education                                                                    
at 95.9 percent.                                                                                                                
                                                                                                                                
3:32:59 PM                                                                                                                    
                                                                                                                                
Co-Chair Kelly  clarified that the mechanics  of the forward                                                                    
funding for education needed to  be reduced for FY 15, money                                                                    
was then moved  to the FY 16 account and  would be funded at                                                                    
a  percentage  level lower  than  had  been anticipated.  He                                                                    
asserted that the  $983 million would not be  a reduction to                                                                    
education, nor would the $151 million.                                                                                          
                                                                                                                                
3:33:41 PM                                                                                                                    
                                                                                                                                
Mr. Armstrong  specified that  the total  funding for  FY 16                                                                    
was 1,151.0.                                                                                                                    
                                                                                                                                
3:34:07 PM                                                                                                                    
                                                                                                                                
Senator  Olson  understood that  instead  of  the BSA  being                                                                    
fully funded,  there would  be a  diminished amount  of $151                                                                    
million.                                                                                                                        
                                                                                                                                
Mr. Armstrong clarified that the  BSA would be reduced in FY                                                                    
16 by  $49 million.  He explained  that the  amendment would                                                                    
result  in  the  absence  of  forward  funding;  the  public                                                                    
education  fund would  have no  money for  FY 17.  The money                                                                    
would go into the constitutional budget reserve (CBR).                                                                          
                                                                                                                                
Co-Chair Kelly  offered an "at  ease" so that  Mr. Armstrong                                                                    
could  answer  committee  members  question  concerning  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
3:35:28 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:37:50 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Kelly noted  that the  fiscal times  faced by  the                                                                    
state were  unprecedented and that "nothing  could be beyond                                                                    
scrutiny." He  gave assurances that the  committee wished to                                                                    
protect  the quality  of  education in  the  state, and  had                                                                    
taken  steps to  make  minimal reductions  in the  education                                                                    
budget. He warned that FY 17  would be "even more scary". He                                                                    
shared   that  oil   production  in   the  world   could  be                                                                    
increasing, which  would negatively affect the  price of oil                                                                    
and, subsequently,  the state  budget. He  said that  if the                                                                    
amendment did  not pass, the conference  committee would not                                                                    
be able to make necessary reductions to the budget.                                                                             
                                                                                                                                
Co-Chair  Kelly removed  his OBJECTION  to  the ADOPTION  of                                                                    
Amendment 1.                                                                                                                    
                                                                                                                                
3:39:49 PM                                                                                                                    
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
Co-Chair MacKinnon MOVED to ADOPT Amendment 25.                                                                                 
                                                                                                                                
Co-Chair Kelly OBJECTED for discussion.                                                                                         
                                                                                                                                
Mr. Armstrong explained Amendment 25:                                                                                           
                                                                                                                                
     Page 41, line 33:                                                                                                          
          Delete "30,074,300"                                                                                                 
          Insert "30,687,300"                                                                                                 
          Delete "30,024,300"                                                                                                 
          Insert "30,637,300"                                                                                                 
                                                                                                                                
                                                                                                                                
     Page 42, lines I 0 - 11:                                                                                                   
          Delete all material and insert:                                                                                       
               "ALLOCATIONS                                                                                                     
     Legislature State 2,352,000                                                                                                
     Facilities Rent -                                                                                                          
     Anchorage                                                                                                                  
     716 W. 4th Ave.                                                                                                            
     It is  the intent  of the  legislature that  the amount                                                                    
     appropriated in  this allocation be used  to make lease                                                                    
     payments  under the  Anchorage 716  W.  4th Ave.  lease                                                                    
     through January 2016.                                                                                                      
     Legislature State 3,837,600                                                                                                
     Facilities Rent -                                                                                                          
     Other than                                                                                                                 
     Anchorage                                                                                                                  
     716 W. 4th Ave."                                                                                                           
                                                                                                                                
                                                                                                                                
     Adjust fund sources and totals accordingly.                                                                                
                                                                                                                                
                                                                                                                                
     Lease for 716 W. 4th Ave. Narrative:                                                                                     
     In the  proposed FY  16 Legislature  Budget there  is a                                                                    
     $4,032,000   request   in    the   "Legislature   State                                                                    
     Facilities                                                                                                                 
     Rent  -Anchorage  LIO"  component  for  the  lease  and                                                                    
     expenses for 716 W. 4th  Ave., that houses legislators,                                                                    
     legislative  staff,  and  the ethics  office.  Of  that                                                                    
     amount,  $3,380,000   is  rent  and  $652,000   is  for                                                                    
     operating  expenses for  that  facility which  includes                                                                    
     utilities,   insurance,  taxes,   property  management,                                                                    
     janitorial, maintenance, security, etc.                                                                                    
                                                                                                                                
     This   proposed   amendment    creates   two   separate                                                                    
     allocations  instead  of  one  consolidated  allocation                                                                    
     dealing  with  rent  and  leasing:  an  allocation  for                                                                    
     "Legislature State  Facilities Rent  716 W.  4th Ave.,"                                                                    
     and  a  separate   allocation  for  "legislature  State                                                                    
     Facilities  Rent  other  than   716  W.  4th  Ave."  In                                                                    
     addition,  this  amendment  reduces  the  appropriation                                                                    
     request for 716 W. 4th  Ave. to $2,352,000. That amount                                                                    
     will cover  the period  of July 1,  2015 -  January 31,                                                                    
     2016,  for rent  of  $281,638 per  month and  operating                                                                    
     expenses  for that  time period.  The legislature  will                                                                    
     not  appropriate any  additional  lease payments  under                                                                    
     the lease for 716 W.  4th Ave. after termination of the                                                                    
     lease  on  January  31,   2016.  Additionally,  we  are                                                                    
     increasing  the "Legislature  State  Facilities Rent  -                                                                    
     Other Than 716 W. 4th  Ave." rent by $277,000, to cover                                                                    
     the remaining  five months of Anchorage  lease costs at                                                                    
     the state Robert B. Atwood Building.                                                                                       
                                                                                                                                
     With   the  adoption   of  this   amendment,  and   the                                                                    
     termination of  the lease  for 716 W.  4th Ave.,  and a                                                                    
     relocation  of  the Anchorage  legislative  information                                                                    
     office to  the Robert B. Atwood  Building after January                                                                    
     31, 2016,  there would be  a savings of  $1,403,000 for                                                                    
     FY 16. The savings per year  starting in FY 17 would be                                                                    
     $3,367,224. This  translates to $33,672,240  in savings                                                                    
     for a 10-year period.                                                                                                      
                                                                                                                                
Co-Chair Kelly REMOVED his OBJECTION to the ADOPTION of                                                                         
Amendment 25.                                                                                                                   
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
3:41:38 PM                                                                                                                    
                                                                                                                                
Co-Chair Kelly MOVED to ADOPT Amendment 26.                                                                                     
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
Co-Chair Kelly discussed Amendment 26:                                                                                          
                                                                                                                                
     Page 72, following line 22:                                                                                                
          Insert a new subsection to read:                                                                                      
          "(b) Federal designated program receipts under AS                                                                     
     47.07.060  for the  proposed expansion  of the  state's                                                                    
     Medicaid  program  may  not  be  accepted  or  expended                                                                    
     without    an   acceptable    reformation   plan    and                                                                    
     appropriation approved by the legislature.'                                                                                
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
Co-Chair  Kelly  stated  that  the  amendment  was  a  "self                                                                    
defense mechanism" to protect  the legislature. He said that                                                                    
Medicaid  expansion  would  continue to  be  discussed,  but                                                                    
assurances were needed that the  expansion would not be done                                                                    
unilaterally by one branch of government.                                                                                       
                                                                                                                                
3:42:43 PM                                                                                                                    
                                                                                                                                
Senator Olson  queried the effects of  Medicaid expansion on                                                                    
the state.                                                                                                                      
                                                                                                                                
Co-Chair   Kelly  related   that  the   governor's  Medicaid                                                                    
expansion bills  were actively  moving through  both bodies.                                                                    
He  stated that  the  amendment was  not  related to  either                                                                    
piece of legislation.                                                                                                           
                                                                                                                                
3:43:13 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon REMOVED her  OBJECTION to the ADOPTION of                                                                    
Amendment 26.                                                                                                                   
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
3:43:25 PM                                                                                                                    
                                                                                                                                
Co-Chair Kelly referred  to Amendments 17 and  18. He shared                                                                    
that  he and  the sponsor  of the  amendments had  agreed to                                                                    
take  up the  issues related  in the  amendments during  the                                                                    
coming conference committee on HB 72.                                                                                           
Senator Olson WITHDREW Amendment 17.                                                                                            
                                                                                                                                
3:44:04 PM                                                                                                                    
                                                                                                                                
Senator Olson WITHDREW Amendment 18.                                                                                            
                                                                                                                                
3:44:20 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:44:28 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Bishop  MOVED that unanimous  consent be  made under                                                                    
Uniform Rule 31A of the  Alaska State Legislature to rescind                                                                    
Amendments  7 and  7B, which  dealt with  monetary terms  of                                                                    
collective bargaining agreements.                                                                                               
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
Senator Bishop  spoke to his  motion. He shared  that during                                                                    
the FY  15 session he  had believed that  the administration                                                                    
and collective bargaining  units should negotiate contracts,                                                                    
and the legislature should only  vote on the monetary terms.                                                                    
He said  that the legislature  had the authority to  fund or                                                                    
not  to fund  the  monetary terms.  He  understood that  the                                                                    
state was  in financially precarious times.  He offered that                                                                    
bargaining  units  were  aware  of the  fiscal  climate.  He                                                                    
thought  that the  amendments would  "taint  the water"  for                                                                    
future contract negotiations.                                                                                                   
                                                                                                                                
3:48:29 PM                                                                                                                    
                                                                                                                                
Co-Chair Kelly stated that he could not support the motion.                                                                     
                                                                                                                                
3:49:13 PM                                                                                                                    
                                                                                                                                
Senator Olson related that he  had been surprised at reading                                                                    
the amendment the previous day.  He referred to the families                                                                    
of  employees  that  would  be   affected  by  the  proposed                                                                    
amendment and  opined that this would  upset their carefully                                                                    
laid financial plans. He offered support for the motion.                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Bishop, Olson                                                                                                         
OPPOSED: Dunleavy, Hoffman, Micciche, Kelly, MacKinnon                                                                          
                                                                                                                                
The MOTION FAILED (2/5).                                                                                                        
                                                                                                                                
3:51:50 PM                                                                                                                    
                                                                                                                                
Co-Chair  Kelly  thought that  there  was  value in  further                                                                    
discussing the  state's fiscal situation. He  mused that the                                                                    
current  fiscal climate  was unusual  and  was projected  to                                                                    
remain unstable. He  asserted that at this  point in history                                                                    
the committee needed to respond  in the best interest of the                                                                    
state. He relayed that he found  no joy in the cuts that had                                                                    
been made,  but believed that  they committee had  done well                                                                    
to not  impact families  with the  budget cuts.  He asserted                                                                    
that the positions  that had been cut  were mainly "phantom"                                                                    
positions.  He  said  that  the   committee  had  worked  to                                                                    
maintain grants  and had been attentive  to Medicaid, health                                                                    
and social  service, and education issues.  He stressed that                                                                    
the committee  had prioritized  the cuts  to have  the least                                                                    
impact on Alaskans. He spoke  of future conference committee                                                                    
discussions  and believed  that the  actions of  the finance                                                                    
committee  would  provide  leverage when  working  with  the                                                                    
other body. He expressed pride  for the operating budget and                                                                    
thanked all of the staff who had worked to craft the bill.                                                                      
                                                                                                                                
3:55:29 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon publicly  disclosed  her close  economic                                                                    
relationship   and  conflict   of  interest   regarding  her                                                                    
husband's  association   with  the   Construction  Education                                                                    
Foundation, which received money  from the state through the                                                                    
Department of Labor & Workforce Development.                                                                                    
                                                                                                                                
Co-Chair Kelly retorted that she  would still be required to                                                                    
vote on the bill.                                                                                                               
                                                                                                                                
3:56:10 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon opined  that the  budget cutes  had been                                                                    
difficult, but  had been the  fiscally responsible  thing to                                                                    
do for  the state.  She asserted that  reoccurring operating                                                                    
costs  needed to  be eliminated  in  order to  significantly                                                                    
decrease the hit to Alaska's  savings account. She furthered                                                                    
that the  state would  be drawing, prior  to June  30, 2015,                                                                    
$3.5 billion  and eliminating the statutory  budget reserve.                                                                    
In July 2016, the state  stood to draw another $3.5 billion,                                                                    
and a  vote would  be needed  to access  the funds  from the                                                                    
constitutional  budget reserve  (CBR).  She understood  that                                                                    
there were cuts  to the budget that were  unpopular, but the                                                                    
cuts  had been  made  in  an effort  to  share the  economic                                                                    
burden  across  the  state. She  hoped  that  the  potential                                                                    
gasline project would provide economic  relief to the state.                                                                    
She stated that the vote  to not honor state union contracts                                                                    
had been  "heart wrenching".  She said  that the  global oil                                                                    
market did  not inspire hope for  a rebound in price  in the                                                                    
foreseeable future. She extended thanks  to all of the staff                                                                    
that had worked on the budget.                                                                                                  
                                                                                                                                
3:59:51 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche offered  his  closing words  concerning                                                                    
the budget process for FY  16. He noted that the legislature                                                                    
had seen the budget shortfalls  coming several years ago and                                                                    
had prepared accordingly.  He lamented that the  cuts he had                                                                    
made to  the Department  of Health  and Social  Services and                                                                    
Department of Transportation  and Public Facilitates budgets                                                                    
had  been difficult.  He said  the state  was not  poor, but                                                                    
tough decisions  had to be made  and pain needed to  be felt                                                                    
by everyone.                                                                                                                    
                                                                                                                                
4:04:04 PM                                                                                                                    
                                                                                                                                
Senator Bishop  echoed the  comments of  Co-Chair MacKinnon.                                                                    
He asserted that  the state needed to stay in  a strong cash                                                                    
position  and  encouraged  the diversification  of  Alaska's                                                                    
economy by monetizing North Slope gas.                                                                                          
                                                                                                                                
4:05:14 PM                                                                                                                    
                                                                                                                                
Co-Chair Kelly  hoped that the capital  budget process would                                                                    
result in a $730 million cut across all FY 16 budgets.                                                                          
                                                                                                                                
4:06:24 PM                                                                                                                    
                                                                                                                                
Senator  Hoffman  thanked  the committee  for  keeping  cuts                                                                    
equal between  both urban  and rural  Alaska.   He commented                                                                    
that the initial  $750 million cut would be  the easiest cut                                                                    
yet made; if  the state cut another $750  million each year,                                                                    
for the next  4 years, the state would still  face a deficit                                                                    
if  the  price   of  oil  remained  low.   He  stressed  the                                                                    
seriousness  of  the deficit  and  referred  to comments  by                                                                    
Legislative Finance Director David  Teal, "we cannot cut our                                                                    
way out  of this  budget deficit."  Sooner or  later revenue                                                                    
generating measures would need to be seriously considered.                                                                      
                                                                                                                                
4:08:23 PM                                                                                                                    
Senator  Dunleavy thanked  the  committee for  all of  their                                                                    
hard work.  He opined  that the collapse  in oil  prices had                                                                    
led  to  the state's  fiscal  crisis.  He worried  that  the                                                                    
recent deal  struck between  the U.S.  and Iran,  to prevent                                                                    
Iran from  acquiring a  nuclear weapon,  could lead  to more                                                                    
oil  production  for  Iran, which  would  hurt  the  Alaskan                                                                    
market.  He expressed  concern that  strategic oil  reserves                                                                    
across the world  were being filled to  capacity. He relayed                                                                    
that  when   oil  prices  dropped   in  1989,   the  state's                                                                    
government was  smaller. He thought that  the current fiscal                                                                    
climate  offered an  opportunity to  explore diversification                                                                    
of  the state's  portfolio.  He understood  that the  budget                                                                    
cuts would affect all Alaskans.                                                                                                 
                                                                                                                                
4:12:57 PM                                                                                                                    
                                                                                                                                
Senator  Olson mentioned  the possibility  of other  revenue                                                                    
sources for the state. He  understood that taxes made people                                                                    
uncomfortable, but  thought that they should  be considered.                                                                    
He echoed  Senator Hoffman's relief  that the cuts  had been                                                                    
equitable between rural and urban area of the state.                                                                            
                                                                                                                                
4:15:25 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  MOVED to REPORT CSHB  72(FIN) as amended                                                                    
out  of  committee   with  individual  recommendations,  and                                                                    
instructed  legislative  legal  and legislative  finance  to                                                                    
make the necessary technical and conforming changes.                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
4:15:54 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  MOVED to REPORT CSHB  73(FIN) as amended                                                                    
out  of  committee   with  individual  recommendations,  and                                                                    
instructed  legislative  legal  and legislative  finance  to                                                                    
make the necessary technical and conforming changes.                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSHB 72(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation.                                                                                                                 
                                                                                                                                
CSHB 73(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation.                                                                                                                 
                                                                                                                                
4:16:29 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:00:54 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon took back the gavel.                                                                                         
                                                                                                                                
5:00:57 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
5:01:03 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 5:01 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB71 Sectional Analysis.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Sponsor Statement.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support AK Pharmacists Assn.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support Bd of Pharmacy.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support Emails 3-19-15.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support Brown 3-13-15.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support Garrison.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support Island Pharmacy.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support NACDS.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support Ron's Apothecary 3-13-15.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support Safeway.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB71 Support Soden 3-23-15.pdf SFIN 4/2/2015 1:30:00 PM
SB 71
SB 86 Changes in SB 86 CS.pdf SFIN 4/2/2015 1:30:00 PM
SB 86
SB 86 CS LC Sectional.pdf SFIN 4/2/2015 1:30:00 PM
SB 86
SB 86 Supporting Documents - DEC Active Contaminated Sites.pdf SFIN 4/2/2015 1:30:00 PM
SB 86
SB 86 Supporting Documents - DEC All Products Spilled FY10-14.pdf SFIN 4/2/2015 1:30:00 PM
SB 86
SB 86 Supporting Documents - DEC All Products Spilled FY14.pdf SFIN 4/2/2015 1:30:00 PM
SB 86
HB 72 Amendment 25.pdf SFIN 4/2/2015 1:30:00 PM
HB 72
HB 72 Amendment 26.pdf SFIN 4/2/2015 1:30:00 PM
HB 72
HB 72 Amendment 24.pdf SFIN 4/2/2015 1:30:00 PM
HB 72
SB 86 - Work Draft version F.pdf SFIN 4/2/2015 1:30:00 PM
SB 86
SB 86 Fund Transfer SFC 4-2-15.pdf SFIN 4/2/2015 1:30:00 PM
SB 86