Legislature(2015 - 2016)SENATE FINANCE 532

04/14/2015 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 53 Presentation: Overview FY17 Operating Budget TELECONFERENCED
Heard & Held
+ HB 146 MUNICIPAL TAX EXEMPTION TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 82 ALCOHOL/SUBST ABUSE PROGRAM MITIGATION TELECONFERENCED
Moved SB 82 Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 14, 2015                                                                                            
                         9:17 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:17:35 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 9:17 a.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  Lesil  McGuire,  sponsor;  Senator  Cathy  Giessel,                                                                    
Sponsor;  Jane  Conway,  Staff  to  Senator  Cathy  Giessel;                                                                    
Senator  Cathy  Munoz,  sponsor;  Edra  Morledge,  Staff  to                                                                    
Senator Kevin  Meyer; Terry Harvey, Staff  to Representative                                                                    
Cathy Munoz.                                                                                                                    
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Laura  Sarcone, Co-Chair,  APRN Alliance,  Anchorage; Carrie                                                                    
Doyle, AK Clinical  Nurse Specialist Association, Anchorage;                                                                    
Gabe   Layman,   General   Counsel,  Cook   Inlet   Housing,                                                                    
Anchorage;  Chuck   Homan,  President,  Alaska   State  Home                                                                    
Building   Association,  Eagle   River;  Ron   Brown,  State                                                                    
Assessor,  Department of  Commerce,  Community and  Economic                                                                    
Development, Anchorage.                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 53     ADVANCED PRACTICE REGISTERED NURSES                                                                                   
                                                                                                                                
          SB 53 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 82     ALCOHOL/SUBST ABUSE PROGRAM MITIGATION                                                                                
                                                                                                                                
          SB 82 was REPORTED out of committee with a "do                                                                        
          pass" recommendation and with two previously                                                                          
          published fiscal notes: FN1 (DHS), FN2 (AJS).                                                                         
                                                                                                                                
CSHB 146(CRA)                                                                                                                   
          MUNICIPAL TAX EXEMPTION                                                                                               
                                                                                                                                
          CSHB 146(CRA) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
SENATE BILL NO. 82                                                                                                            
                                                                                                                                
     "An Act relating to mitigating factors at sentencing."                                                                     
                                                                                                                                
9:18:27 AM                                                                                                                    
                                                                                                                                
SENATOR LESIL MCGUIRE, SPONSOR,  hoped the legislation could                                                                    
work toward reducing prison costs in the state.                                                                                 
                                                                                                                                
Co-Chair  MacKinnon noted  that  public  testimony had  been                                                                    
held on April 13, 2015.                                                                                                         
                                                                                                                                
9:19:04 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  discussed Fiscal Note 1  (FN1) from the                                                                    
Department  of  Health  and   Social  Services  division  of                                                                    
Behavioral  Health for  the Alcohol  Safety Action  Program;                                                                    
the fiscal note was zero.                                                                                                       
                                                                                                                                
9:19:38 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche discussed FN2  from the Alaska Judiciary                                                                    
System  division  of  the  Alaska  Court  System  for  Trial                                                                    
Courts; the fiscal note was zero.                                                                                               
                                                                                                                                
9:20:16 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche MOVED  to report SB 82  out of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes. There being NO OBJECTION, it was so ordered.                                                                             
SB  82  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation  and  with   two  previously  published  zero                                                                    
fiscal notes: FN 1 (DHS), FN2 (AJS).                                                                                            
                                                                                                                                
9:20:35 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:22:25 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 53                                                                                                            
                                                                                                                                
     "An Act relating to advanced practice registered                                                                           
     nursing; relating to certified direct-entry midwifery;                                                                     
     and providing for an effective date."                                                                                      
                                                                                                                                
9:22:36 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:22:43 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon introduced SB 53.                                                                                            
                                                                                                                                
9:23:09 AM                                                                                                                    
                                                                                                                                
SENATOR CATHY GIESSEL, SPONSOR,  directed the committee to a                                                                    
chart  from the  Advanced Practice  Registered Nurse  (APRN)                                                                    
Alliance  (copy on  file). She  said that  over the  past 34                                                                    
years  that  the  state  had  authorized  the  practice  for                                                                    
advanced   nurse   practitioners  and   nurse   anesthetists                                                                    
additional  nursing  specialties  in  advance  practice  had                                                                    
evolved. She  said that the advanced  categories of Advanced                                                                    
Nurse Practitioner (ANP);  Nurse Anesthetist (NA); Certified                                                                    
Nurse Midwife  (CNM); and  Clinical Nurse  Specialist (CNS),                                                                    
had been brought under the  single title of APRN. She shared                                                                    
that 11  states had completed  the transition to  the single                                                                    
title and  13 were  working on  the transition.  She relayed                                                                    
that there were approximately 1000 APRN's in the state.                                                                         
                                                                                                                                
9:26:24 AM                                                                                                                    
                                                                                                                                
Senator Giessel  addressed the fiscal note,  which reflected                                                                    
a cost  of $7,500  in FY  16. She spoke  to the  analysis on                                                                    
Page 2:                                                                                                                         
     SB   53  was   requested  by   the  advanced   practice                                                                    
     registered  nurses (APRN)  in Alaska  through the  APRN                                                                    
     Alliance   to  reduce   confusion  about   titling  for                                                                    
     consumers and  payers. It brings Alaska  into alignment                                                                    
     with  the   APRN  Consensus  Model,  a   national  best                                                                    
     practices act.                                                                                                             
                                                                                                                                
     It is  anticipated that the  Board of  Nursing, Medical                                                                    
     Board, and Board of  Professional Counselors would each                                                                    
     need to  replace outdated terminology that  conforms to                                                                    
     this  statutory change.   The  division estimates  that                                                                    
     the cost to  each of these licensing  programs could be                                                                    
     up   to  $2.5   per   program   for  attorney   review,                                                                    
     regulations specialist  time, printing, and  postage to                                                                    
     affected licensees.  As required  by AS  08.01.065, the                                                                    
     cost  of  promulgating  regulations will  be  recovered                                                                    
     through license fee receipts.                                                                                              
                                                                                                                                
     If the  bill passes the  division will require  $7.5 to                                                                    
     cover legal  costs to amend regulations,  printing, and                                                                    
     postage.                                                                                                                   
                                                                                                                                
     Professional licensing programs  within the Division of                                                                    
     Corporations, Business  and Professional  Licensing are                                                                    
     funded by Receipt Supported  Services, fund source 1156                                                                    
     Rcpt  Svcs (DGF).  Licensing fees  for each  occupation                                                                    
     are  set  per  AS  08.01.065 so  the  total  amount  of                                                                    
     revenue    collected     approximately    equals    the                                                                    
     occupation's actual regulatory costs.                                                                                      
                                                                                                                                
9:27:08 AM                                                                                                                    
                                                                                                                                
JANE  CONWAY,  STAFF  TO  SENATOR  CATHY  GIESSEL,  gave  an                                                                    
overview  of  the  sectional summary  (copy  on  file).  She                                                                    
explained  that 12  sections  in the  bill  were related  to                                                                    
conforming amendments:                                                                                                          
                                                                                                                                
     Section  1  amends  AS  08.02.010  by  adding  advanced                                                                  
     practice registered  nurses to the list  of professions                                                                    
     required to  use their professional titles  or initials                                                                    
     on stationery, signs, or other advertising.                                                                                
                                                                                                                                
     Sections 2 - 4 are  conforming amendments that change a                                                                  
     statutory reference from  "advanced nurse practitioner"                                                                    
     to "advance  practice registered nurse" and  make other                                                                    
     related technical amendments.                                                                                              
     Section  5 amends  AS 08.68.1  OO(a) by  requiring that                                                                  
     the  Board  of   Nursing's  regulations  pertaining  to                                                                    
     advanced  practice   registered  nursing   include  the                                                                    
     practices  of advanced  practice registered  nurses who                                                                    
     practice  as certified  registered nurse  anesthetists,                                                                    
     certified clinical  nurse specialists,  certified nurse                                                                    
     practitioners,  or certified  nurse midwives  and makes                                                                    
     conforming amendments.                                                                                                     
                                                                                                                                
     Section  6  amends  AS  08.68.160  by  adding  advanced                                                                  
     practice  registered  nursing  to the  licenses  issued                                                                    
     under  AS  08.68  and changes  the  term  "professional                                                                    
     nursing" to "registered nursing."                                                                                          
                                                                                                                                
     Section 7  adds a new  subsection to AS  08.68.170 that                                                                  
     sets out  the qualifications  for an  advanced practice                                                                    
     registered nursing license.                                                                                                
                                                                                                                                
     Section 8 repeals and  reenacts AS 08.68.190 concerning                                                                  
     license  examinations  and  adds an  advanced  practice                                                                    
     registered   nursing  examination   to  the   licensing                                                                    
     examinations conducted under AS 08.68.                                                                                     
                                                                                                                                
     Section  9 is  a  conforming amendment  that changes  a                                                                  
     statutory reference from  "advanced nurse practitioner"                                                                    
     to "advance practice registered nurse."                                                                                    
                                                                                                                                
     Section 10  amends AS 08.68.220  by adding  a paragraph                                                                  
     requiring the Department of                                                                                                
     Commerce,  Community and  Economic  Development to  set                                                                    
     fees  related to  advanced practice  registered nursing                                                                    
     and deletes "vocational" nursing.                                                                                          
                                                                                                                                
     Section   11  amends   AS   08.68.230(a)  by   removing                                                                  
     "licensed   professional   nurse"   from   the   titles                                                                    
     authorized for persons licensed under AS 08.68.                                                                            
                                                                                                                                
     Section   12  amends   AS  08.68.230   by  adding   new                                                                  
     subsections   authorizing  the   use   of  the   titles                                                                    
     "advanced   practice   registered  nurse",   "certified                                                                    
     registered  nurse   anesthetist",  "certified  clinical                                                                    
     nurse specialist",  "certified nurse  practitioner", or                                                                    
    "certified nurse midwife" and associated initials.                                                                          
                                                                                                                                
     Section  13  amends  AS   08.68.265  to  acid  advanced                                                                  
     practice  registered nurses  to the  persons authorized                                                                    
     to supervise a practical nurse.                                                                                            
     Section 14  adds impersonation of an  advanced practice                                                                  
     registered nurse  as a grounds for  denial, suspension,                                                                    
     or revocation of a nursing license.                                                                                        
                                                                                                                                
     Section 15 requires institutions  that are applying for                                                                  
     accreditation  of  advanced practice  registered  nurse                                                                    
     training to  provide certain  information to  the Board                                                                    
     of Nursing.                                                                                                                
                                                                                                                                
     Section 16  adds impersonation of an  advanced practice                                                                  
     registered nurse  as a grounds for  denial, suspension,                                                                    
     or revocation of  a certificate to practice  as a nurse                                                                    
     aide.                                                                                                                      
                                                                                                                                
9:30:40 AM                                                                                                                    
                                                                                                                                
Ms. Conway continued:                                                                                                           
                                                                                                                                
     Sections  17  -  19 add  advanced  practice  registered                                                                  
     nursing  to  the  licenses issued  by  the  board,  and                                                                    
     change the  term "professional nursing"  to "registered                                                                    
     nursing" in                                                                                                                
     AS 08.68.360 - 08.68.390,  which declare the unlicensed                                                                    
     practice of  nursing a public nuisance  and provide for                                                                    
     injunctive relief.                                                                                                         
                                                                                                                                
     Section 20 adds advanced  practice registered nurses to                                                                  
     the licensees who may delegate certain nursing duties.                                                                     
                                                                                                                                
     Section  21 is  a conforming  amendment that  changes a                                                                  
     statutory reference from  "advanced nurse practitioner"                                                                    
     to  "advance practice  registered  nurse"  and makes  a                                                                    
     related technical change.                                                                                                  
                                                                                                                                
     Section 22  defines the  practice of  advanced practice                                                                  
     registered nursing.                                                                                                        
                                                                                                                                
9:30:59 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon asked whether the definition in Section                                                                      
22 was a new or existing definition.                                                                                            
                                                                                                                                
9:31:24 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:32:00 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon repeated her question.                                                                                       
                                                                                                                                
Senator Giessel related that the legislation corrected the                                                                      
title of advanced practice registered nurse. She noted that                                                                     
the scope of practice would remain the same.                                                                                    
                                                                                                                                
9:32:50 AM                                                                                                                    
                                                                                                                                
Ms. Conway continued with the sectional analysis:                                                                               
                                                                                                                                
     Sections 23 - 25  are conforming amendments that change                                                                  
     a    statutory   reference    from   "advanced    nurse                                                                    
     practitioner"  to "advance  practice registered  nurse"                                                                    
     and make other related technical amendments.                                                                               
                                                                                                                                
     Section 26 adds advanced  practice registered nurses to                                                                  
     persons who  are considered  justified in  conduct that                                                                    
     would  otherwise be  considered the  use of  force when                                                                    
     delivering emergency medical care.                                                                                         
                                                                                                                                
     Sections  27  and  28 are  conforming  amendments  that                                                                  
     change  a  statutory  reference  from  "advanced  nurse                                                                    
     practitioner" to "advance practice registered nurse."                                                                      
                                                                                                                              
     Section 29 adds advanced  practice registered nurses to                                                                  
     those licensees immune from civil  liability for an act                                                                    
     or omission  in delivering patient case  services while                                                                    
     escorting an  injured or sick  person whose life  is in                                                                    
     danger in a conveyance that is not an ambulance.                                                                           
                                                                                                                              
     Section  30 is  a conforming  amendment that  changes a                                                                  
     statutory reference from  "advanced nurse practitioner"                                                                    
     to "advance practice registered nurse."                                                                                    
                                                                                                                                
     Section 31 adds advanced  practice registered nurses to                                                                  
     those practitioners authorized to  draw blood for tests                                                                    
     of persons charged with sex offenses.                                                                                      
                                                                                                                                
     Sections  32  and  33 are  conforming  amendments  that                                                                  
     change  a  statutory  reference  from  "advanced  nurse                                                                    
     practitioner" to "advance practice registered nurse."                                                                      
                                                                                                                                
     Section  34 clarifies  that  nurse-midwives and  direct                                                                  
     entry midwives are certified.                                                                                              
                                                                                                                                
     Sections 35 - 38  are conforming amendments that change                                                                  
     a    statutory   reference    from   "advanced    nurse                                                                    
     practitioner"  to "advance  practice registered  nurse"                                                                    
     and make other related technical amendments.                                                                               
                                                                                                                                
     Section  39 changes  the term  "registered professional                                                                  
     nursing" to "registered nursing."                                                                                          
                                                                                                                              
     Section  40  clarifies   that  nurse-midwives  must  be                                                                  
     certified to be a provider under AS21.87.                                                                                  
                                                                                                                                
     Section  41 is  a conforming  amendment that  changes a                                                                  
     statutory reference from  "advanced nurse practitioner"                                                                    
     to "advance practice registered nurse."                                                                                    
                                                                                                                                
     Sections  42 -  43  clarifies  that nurse-midwives  are                                                                  
     certified and makes other technical amendments.                                                                            
                                                                                                                                
     Sections 44 - 46  are conforming amendments that change                                                                  
     a    statutory   reference    from   "advanced    nurse                                                                    
     practitioner" to "advance practice registered nurse."                                                                      
                                                                                                                                
     Section 47 adds advanced  practice registered nurses to                                                                  
     the  definition of  health care  provider in  statutory                                                                    
     provisions concerning prisons.                                                                                             
                                                                                                                                
     Section  48 is  a conforming  amendment that  changes a                                                                  
     statutory reference from  "advanced nurse practitioner"                                                                    
     to "advance practice registered nurse."                                                                                    
                                                                                                                                
     Section 49 adds advanced  practice registered nurses to                                                                  
     licensees  with particular  training who  may assess  a                                                                    
     child  with respect  to the  waiver  under a  statutory                                                                    
     provision concerning  home and community  based medical                                                                    
     assistance.                                                                                                                
                                                                                                                                
9:35:25 AM                                                                                                                    
                                                                                                                                
Ms. Conway continued to Section 50 of the sectional                                                                             
analysis:                                                                                                                       
                                                                                                                                
     Section  50 is  a conforming  amendment that  changes a                                                                  
     statutory reference from  "advanced nurse practitioner"                                                                    
     to  "advance practice  registered  nurse"  and makes  a                                                                    
     related technical change.                                                                                                  
                                                                                                                                
     Sections  51 adds  advanced practice  registered nurses                                                                  
     to  practitioners  who  are not  liable  for  providing                                                                    
     information  to the  Department  of  Health and  Social                                                                    
     Services  for  the  purpose of  providing  services  to                                                                    
     certain children and makes a related technical change.                                                                     
                                                                                                                                
9:35:52 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon asked for further explanation of Section                                                                     
51.                                                                                                                             
                                                                                                                                
Senator Giessel  elucidated that newborns were  assessed for                                                                    
hearing   loss;  the   section  clarified   that  not   only                                                                    
registered  nursed  could  administer  the  test,  but  also                                                                    
advance practice registered nurses.                                                                                             
                                                                                                                                
9:36:32 AM                                                                                                                    
                                                                                                                                
Ms. Conway continued with the sectional analysis:                                                                               
                                                                                                                                
     Sections  52  -  54 add  advanced  practice  registered                                                                  
     nurses  to   practitioners  who  may   under  statutory                                                                    
     provisions   concerning   mental   health   commitment,                                                                    
     determine if a person  may be administered psychotropic                                                                    
     medication  without  the   person's  consent,  and  add                                                                    
     advanced  practice  registered nurses  with  particular                                                                    
     training   to   the   definition   of   mental   health                                                                    
     professional for those statutory provisions.                                                                               
                                                                                                                                
9:37:00 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:37:52 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Ms. Conway continued with the sectional analysis:                                                                               
                                                                                                                                
     Sections  55 adds  advanced practice  registered nurses                                                                  
     to practitioners who may review  a health care plan for                                                                    
     an assisted living home resident.                                                                                          
                                                                                                                                
     Sections 56 - 59  are conforming amendments that change                                                                  
     a    statutory   reference    from   "advanced    nurse                                                                    
     practitioner" to "advance practice registered nurse."                                                                      
                                                                                                                                
     Section 60 repeals specific statutes.                                                                                    
                                                                                                                                
     Section 61 sets July 1, 2015, as the effective date                                                                      
     for the bill.                                                                                                              
                                                                                                                                
9:38:49 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche asked  why the  nurse anesthetists  had                                                                    
been outside of the supervised practical nurse structure.                                                                       
                                                                                                                                
Senator Giessel  explained that  a licensed  practical nurse                                                                    
had   a  two   year  degree;   certified  registered   nurse                                                                    
anesthetists had their own section  in nursing statue, which                                                                    
the bill would correct.                                                                                                         
                                                                                                                                
9:39:54 AM                                                                                                                    
                                                                                                                                
Senator Olson  interjected that nurse  anesthetists operated                                                                    
under the supervision of an anesthesiologist.                                                                                   
                                                                                                                                
9:40:18 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche repeated his question.                                                                                      
                                                                                                                                
Senator  Giessel contended  that it  had been  decades since                                                                    
nurse  anesthetists  had  been   under  the  supervision  of                                                                    
anesthesiologists.                                                                                                              
                                                                                                                                
9:41:03 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
LAURA  SARCONE,  CO-CHAIR,  APRN  ALLIANCE,  ANCHORAGE  (via                                                                    
teleconference), testified in support  of SB 53. She relayed                                                                    
that the APRN  consensus model was a  National Best Practice                                                                    
Act  that  put consumers,  employers,  APRNs,  the Board  of                                                                    
Nursing,  insurance companies  and  the  legislature on  the                                                                    
same   page  by   standardizing  licensing,   accreditation,                                                                    
certification  and educational  requirements for  APRNs. She                                                                    
said that  the APRN  Alliance had  reviewed the  fiscal note                                                                    
and was comfortable with the  cost, which would be recovered                                                                    
through licensing fees.                                                                                                         
                                                                                                                                
9:42:56 AM                                                                                                                    
                                                                                                                                
CARRIE  DOYLE,  AK  CLINICAL NURSE  SPECIALIST  ASSOCIATION,                                                                    
ANCHORAGE (via  teleconference), testified in support  of SB                                                                    
53. She  gave a  brief history of  the consensus  model. She                                                                    
stated   that  the   uniformity  would   expedite  insurance                                                                    
reimbursement   by  eliminating   confusion  about   service                                                                    
providers and would  allow APRN's from other  states to more                                                                    
easily  obtain Alaska  licensure.  She said  that under  the                                                                    
legislation,  advance nurse  practitioners and  anesthetists                                                                    
would  still provide  high quality,  safe, accessible  care,                                                                    
but under a new title.                                                                                                          
                                                                                                                                
9:44:40 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
9:45:02 AM                                                                                                                    
                                                                                                                                
Senator  Bishop felt  that anything  that could  be done  to                                                                    
expedite payments  to hospitals and medical  providers was a                                                                    
good idea. He asked whether  an individual would more easily                                                                    
find reciprocity  when seeking  nursing licensure  in Alaska                                                                    
under the legislation.                                                                                                          
                                                                                                                                
Senator Giessel answered in the affirmative.                                                                                    
                                                                                                                                
9:47:01 AM                                                                                                                    
                                                                                                                                
Senator Olson  asked about Section  29, he wondered  who was                                                                    
on  the current  list  of licensees  that  were immune  from                                                                    
civil liability.                                                                                                                
                                                                                                                                
Senator  Giessel  replied  registered  nurses  and  licensed                                                                    
practical nurses were on the list.                                                                                              
                                                                                                                                
Senator  Olson asked  whether health  corporations supported                                                                    
the legislation.                                                                                                                
                                                                                                                                
Senator  Giessel replied  that she  had not  heard from  any                                                                    
health corporations.                                                                                                            
                                                                                                                                
9:48:07 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy reminded the  sponsor of the state's fiscal                                                                    
situation. He requested justification  for the fiscal impact                                                                    
of the fiscal note attached to the bill.                                                                                        
                                                                                                                                
Senator  Giessel responded  that the  fiscal note  reflected                                                                    
that the  fiscal impact  of the  note would  be paid  for by                                                                    
licensees.                                                                                                                      
                                                                                                                                
Senator Dunleavy  understood that no general  funds would be                                                                    
used for the legislation.                                                                                                       
                                                                                                                                
Senator Giessel replied in the affirmative.                                                                                     
                                                                                                                                
9:49:12 AM                                                                                                                    
                                                                                                                                
SB  53  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 146(CRA)                                                                                                
                                                                                                                                
     "An Act relating to a municipal tax exemption for                                                                          
     certain subdivided property."                                                                                              
                                                                                                                                
9:49:37 AM                                                                                                                    
                                                                                                                                
SENATOR CATHY  MUNOZ, SPONSOR, explained  that HB  146 would                                                                    
give  municipalities the  option of  exempting the  increase                                                                    
value of  a new subdivision  until the lot started  to sell,                                                                    
or until  a certain  time period was  met. She  related that                                                                    
the legislation came as a result  of a request from the City                                                                    
and  Borough of  Juneau to  look  at ways  to encourage  new                                                                    
housing  development,  especially  affordable  housing.  She                                                                    
furthered that the  legislation would incentivize developers                                                                    
to   develop  lands   while  keeping   down  the   costs  of                                                                    
developments.   She   explained   that  currently   when   a                                                                    
subdivision  plot  map  was  finalized  and  certified,  the                                                                    
property assessment  rose considerably. She stated  that the                                                                    
legislation was  a tool that  would allow  municipalities in                                                                    
communities  with   housing  shortages  to  work   with  the                                                                    
developer  to exempt  a portion,  or all,  of the  increased                                                                    
valuation for a certain time period.                                                                                            
                                                                                                                                
9:51:41 AM                                                                                                                    
                                                                                                                                
EDRA MORLEDGE, STAFF TO SENATOR  KEVIN MEYER, explained that                                                                    
the  amendment  to the  bill  made  in the  Senate  Regional                                                                    
Affairs  Committee  would  allow  for  a  partial  or  total                                                                    
exemption,  or deferral  of  property  tax for  deteriorated                                                                    
properties.  The   amendment  clarified  that  the   8  unit                                                                    
requirement currently  in statute for the  rehabilitation of                                                                    
deteriorated  properties could  be required  at the  time of                                                                    
application for  the tax  exemption or  deferral, or  at the                                                                    
completion of  the project. The  amendment also  allowed for                                                                    
multiple  properties in  a designated  deteriorated property                                                                    
area to be  considered collectively for the  8 unit minimum.                                                                    
Finally, the  amendment made a technical  fix, inserting the                                                                    
word "not"  where it had  be omitted  prior on Page  2, line                                                                    
27.                                                                                                                             
                                                                                                                                
9:53:40 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
9:54:25 AM                                                                                                                    
                                                                                                                                
GABE LAYMAN, GENERAL COUNSEL,  COOK INLET HOUSING, ANCHORAGE                                                                    
(via teleconference),  testified in support of  the bill. He                                                                    
asserted  the legislation  would  empower municipalities  to                                                                    
offer certain  property tax incentives that  would encourage                                                                    
private developers to proceed  with developments in Alaska's                                                                    
challenging  real estate  market. He  spoke to  the positive                                                                    
impact  of the  provisions  in the  bill  that pertained  to                                                                    
optional   municipal  property   tax   incentives  for   the                                                                    
redevelopment of  deteriorated properties. He  believed that                                                                    
HB 146  would clarify  ambiguous provisions of  the existing                                                                    
state  statute, improving  its  usefulness.  He pointed  out                                                                    
that municipalities  would need to  opt into the  program in                                                                    
order to offer  the tool to developers. He  shared that once                                                                    
a  municipality  opted  in,   it  retained  the  ability  to                                                                    
evaluate project  applications on a  case by case  basis. He                                                                    
concluded  that  the   legislation  would  promote  economic                                                                    
development,  further  empower   municipalities  to  address                                                                    
blight  and deterioration  in  a  locally controlled  manner                                                                    
without costing the state any money.                                                                                            
                                                                                                                                
9:56:01 AM                                                                                                                    
                                                                                                                                
CHUCK   HOMAN,  PRESIDENT,   ALASKA   STATE  HOME   BUILDING                                                                    
ASSOCIATION, EAGLE RIVER  (via teleconference), testified in                                                                    
support  of the  bill. He  noted that  his organization  had                                                                    
sent a letter of support (copy on file).                                                                                        
                                                                                                                                
9:56:43 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
9:57:05 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  asked how  the  bill  might affect  the                                                                    
values  across   the  state  in  comparison   to  the  state                                                                    
treasury.                                                                                                                       
RON   BROWN,  STATE   ASSESSOR,   DEPARTMENT  OF   COMMERCE,                                                                    
COMMUNITY   AND   ECONOMIC   DEVELOPMENT,   ANCHORAGE   (via                                                                    
teleconference), stated  that there exemption  was optional.                                                                    
He  explained  that if  a  municipality  were to  adopt  the                                                                    
legislation there  would be  zero impact  to the  full value                                                                    
determination, as  an optional exemption the  property would                                                                    
be  appraised and  reported by  the  local municipality  and                                                                    
added back into the full value for the community.                                                                               
                                                                                                                                
Co-Chair MacKinnon  asked how  the foundation  formula would                                                                    
be effected by the legislation.                                                                                                 
                                                                                                                                
Mr. Brown  explained that for optional  exemptions, the full                                                                    
value of  determination and local school  contribution would                                                                    
be returned to the local community.                                                                                             
                                                                                                                                
9:59:10 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  asked if whether it  would positively or                                                                    
negatively affect the amount  of funding that municipalities                                                                    
would receive for schools.                                                                                                      
                                                                                                                                
Mr. Brown responded that the effect would be neutral.                                                                           
                                                                                                                                
Co-Chair MacKinnon thought that  the committee would need to                                                                    
hear from the Department of  Education on how the bill would                                                                    
affect the foundation formula.                                                                                                  
                                                                                                                                
10:00:03 AM                                                                                                                   
                                                                                                                                
TERRY HARVEY,  STAFF TO REPRESENTATIVE CATHY  MUNOZ, assured                                                                    
the  committee that  the  information  concerning the  bills                                                                    
effect on  formula funding for  education would  be provided                                                                    
to the committee.                                                                                                               
                                                                                                                                
CSHB 146(CRA)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
10:00:14 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon discussed housekeeping.                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:01:14 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
The meeting was adjourned at 10:01 a.m.                                                                                         

Document Name Date/Time Subjects
SB53 Backup States Adopting APRN Consensus Model.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Sectional Analysis vsn N.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Sponsor Statement vsn N.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support AaNA 3-9-2015.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support AARP 3-3-2015.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support AK Affiliate ACNM 2-23-15.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support AK Pharmacists 3-6-2015.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support ANPA 2-24-15.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support AKANA 2-22-15.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support APRN Alliance 2-22-15.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support ASHNHA 3-5-15.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support Bd of Nursing 3-9-2015.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support Dooley 3-6-2015.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support FASDx Services 2-26-2015.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support Hartz 2-26-15.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support Hiles 3-16-15.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support Myers 2-24-2015.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Support Rader 2-22-15.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
SB53 Title Change Chart.pdf SFIN 4/14/2015 9:00:00 AM
SB 53
HB 146 - SB87 AAHA Letter of Support.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 ADP Letter of Support.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 Anchorage Community Development Authority Letter of Support.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 Anchorage Community Land Trust Letter of Support.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 Anchorage Economic Development Corporation Letter of Support.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 CIHA Statement.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 Fairview BA Letter.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 Jack White Real Estate Letter of Support.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 Peach Investments Letter.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 Tacoma tax invest article.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 - SB87 Weidner Apartment Homes Letter of Support.pdf SFIN 4/14/2015 9:00:00 AM
HB 146
SB 87
HB 146 Statement Layman.pdf SFIN 4/14/2015 9:00:00 AM
HB 146