Legislature(2015 - 2016)SENATE FINANCE 532

04/15/2015 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Presentation: Overview FY17 Operating Budget
+= SB 53 ADVANCED PRACTICE REGISTERED NURSES TELECONFERENCED
Moved SB 53 Out of Committee
+= SB 46 MUNI BOND BANK LOANS TO REG HEALTH ORGS TELECONFERENCED
Moved CSSB 46(FIN) Out of Committee
+= HB 140 LEG. APPROVAL: AK RAILROAD REVENUE BONDS TELECONFERENCED
Moved HB 140 Out of Committee
+= HB 158 REFINED FUEL SURCHARGE;MOTOR FUEL TAX TELECONFERENCED
Moved SCS CSHB 158(FIN) Out of Committee
+= HB 161 MEDICAID: USED DURABLE MEDICAL EQUIPMENT TELECONFERENCED
Moved CSHB 161(HSS) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 15, 2015                                                                                            
                         9:01 a.m.                                                                                              
                                                                                                                                
9:01:44 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair MacKinnon called the Senate Finance Committee                                                                          
meeting to order at 9:01 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Peter Micciche, Vice-Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Cathy  Giessel, Sponsor; Erin Shine,  Staff, Senator                                                                    
Anna MacKinnon;  Deven Mitchell, Executive  Director, Alaska                                                                    
Municipal  Bond  Bank   Authority,  Department  of  Revenue;                                                                    
Representative   Steve  Thompson,   Sponsor;  Representative                                                                    
Cathy Munoz, Sponsor; Representative Lynn Gattis, Sponsor.                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 46     MUNI BOND BANK LOANS TO REG HEALTH ORGS                                                                               
                                                                                                                                
          CSSB 46(FIN) was REPORTED out  of committee with a                                                                    
          "do  pass" recommendation  and with  one new  zero                                                                    
          fiscal note  from the  Department of  Revenue; and                                                                    
          one  new   indeterminate  fiscal  note   from  the                                                                    
         Department of Health and Social Services.                                                                              
                                                                                                                                
SB 53     ADVANCED PRACTICE REGISTERED NURSES                                                                                   
                                                                                                                                
          SB 53 was REPORTED out of committee with a "do                                                                        
          pass" recommendation and with one new fiscal                                                                          
          impact note  from the Department of  Education and                                                                    
          Early Development.                                                                                                    
                                                                                                                                
HB 140    LEG. APPROVAL: AK RAILROAD REVENUE BONDS                                                                              
                                                                                                                                
          HB 140  was REPORTED out  of committee with  a "do                                                                    
          pass"  recommendation  and   with  one  previously                                                                    
          published zero fiscal note: FN1 (CED).                                                                                
                                                                                                                                
CSHB 158(FIN)                                                                                                                   
          REFINED FUEL SURCHARGE;MOTOR FUEL TAX                                                                                 
                                                                                                                                
          SCS CSHB  158(FIN) was  REPORTED out  of committee                                                                    
          with   a  "do   pass"   recommendation  and   with                                                                    
          attached letter  of intent; one new  fiscal impact                                                                    
          note from  the Senate  Finance Committee;  one new                                                                    
          zero impact  note from the Department  of Revenue;                                                                    
          and  one previously  published  zero impact  note:                                                                    
          FN1 (DEC).                                                                                                            
                                                                                                                                
CSHB 161(HSS)                                                                                                                   
         MEDICAID:  USED DURABLE MEDICAL EQUIPMENT                                                                              
                                                                                                                                
          CSHB 161(HSS)  was REPORTED out of  committee with                                                                    
          a   "do   pass"   recommendation  and   with   one                                                                    
          previously published zero impact note: FN 1(DHS).                                                                     
                                                                                                                                
SENATE BILL NO. 53                                                                                                            
                                                                                                                                
     "An Act relating to advanced practice registered                                                                           
     nursing;   relating   to    certified   direct-   entry                                                                    
     midwifery; and providing for an effective date."                                                                           
                                                                                                                                
9:02:47 AM                                                                                                                    
                                                                                                                                
SENATOR  CATHY   GIESSEL,  SPONSOR,  stated  that   she  was                                                                    
available for questions.                                                                                                        
                                                                                                                                
Vice-Chair Micciche discussed the  attached fiscal note from                                                                    
the   Department  of   Commerce,   Community  and   Economic                                                                    
Development,  with   the  appropriation   for  Corporations,                                                                    
Business,  and Professional  Licensing.  The allocation  was                                                                    
corporations,  business,  and  professional  licensing.  The                                                                    
fiscal note  for FY 16 was  $7,500 with zero in  the ongoing                                                                    
years to FY 21.                                                                                                                 
                                                                                                                                
                                                                                                                                
Co-Chair  MacKinnon  announced  that  the  fiscal  note  was                                                                    
receipt  collection  authority  for  the  division.  Senator                                                                    
Giessel agreed.                                                                                                                 
                                                                                                                                
Vice-Chair Micciche MOVED  to REPORT SB 53  out of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB  53  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation and with one new  fiscal impact note from the                                                                    
Department of Education and Early Development.                                                                                  
                                                                                                                                
9:05:02 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:06:46 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 46                                                                                                            
                                                                                                                                
     "An  Act relating  to the  Alaska  Municipal Bond  Bank                                                                    
     Authority; authorizing  the Alaska Municipal  Bond Bank                                                                    
     Authority  to  issue  bonds or  notes  for  a  regional                                                                    
     health  organization; and  providing  for an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:06:57 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  MOVED to  ADOPT the  proposed committee                                                                    
substitute  for  SB  46, Work  Draft  29-LS0447\1  (Wallace,                                                                    
4/14/15). Co-Chair MacKinnon OBJECTED for discussion.                                                                           
                                                                                                                                
ERIN  SHINE, STAFF,  SENATOR ANNA  MACKINNON, explained  the                                                                    
committee   substitute    allowed   for    regional   health                                                                    
organizations to  utilize the municipal bond  bank to assist                                                                    
to  provide  health  care facilities  by  providing  capital                                                                    
funds  through   loans.  She   stated  that   the  committee                                                                    
substitute  lowered the  amount  from $250  million to  $205                                                                    
million  as  the  total  the bond  bank  could  finance  for                                                                    
regional  health  organizations.  The  committee  substitute                                                                    
also allowed  for the bond bank  to finance no more  than 49                                                                    
percent  of any  one project.  In addition,  the 49  percent                                                                    
financing was  contingent on  the balance  or 51  percent of                                                                    
the total project costs being  secured or delivered prior to                                                                    
bonding. The last change in  the committee substitute stated                                                                    
that no  single regional health organization  borrower could                                                                    
access  more than  50 percent  of the  $205 million  bonding                                                                    
authority. The  committee substitute also allowed  for joint                                                                    
action agencies  to utilize the  bond bank. She  added there                                                                    
were  also  some conforming  and  technical  changes in  the                                                                    
committee substitute.                                                                                                           
                                                                                                                                
Co-Chair  MacKinnon  remarked  that there  was  a  requested                                                                    
amendment  from Trey  Acteson  during  the public  testimony                                                                    
hearing to allow CEP out  of Petersburg, Ketchikan, and Swan                                                                    
Lake, therefore allowing the joint  action agency declared a                                                                    
political subdivision.  There was not clear  direction about                                                                    
whether they qualified for the bonds.                                                                                           
                                                                                                                                
9:09:46 AM                                                                                                                    
                                                                                                                                
DEVEN  MITCHELL, EXECUTIVE  DIRECTOR, ALASKA  MUNICIPAL BOND                                                                    
BANK AUTHORITY,  DEPARTMENT OF  REVENUE, explained  that the                                                                    
joint action  agencies were similar to  port authorities, in                                                                    
as  much  as  they  were  created  by  a  conglomeration  of                                                                    
municipalities  for delivering  energy  to the  communities.                                                                    
Therefore, the joint action agency  was similar to a current                                                                    
mandate within the bond bank.                                                                                                   
                                                                                                                                
Senator  Dunleavy wondered  if the  bill was  an appropriate                                                                    
method,  and   queried  any   concerns  that   Alaskans  may                                                                    
experience related  to the  legislation. Mr.  Mitchell asked                                                                    
if Senator Dunleavy  referred to the joint  action agency or                                                                    
the broader aspects of the bill.                                                                                                
                                                                                                                                
Senator  Dunleavy clarified  that  he was  referring to  the                                                                    
committee   substitute.  Mr.   Mitchell   stated  that   the                                                                    
suggested changes  would alleviate  some concerns  that were                                                                    
discussed  in  the  committee. The  addition  of  the  joint                                                                    
action agency  did not cause  any concern, because it  was a                                                                    
similar mission to  the current mission. He  stated that the                                                                    
bank already lent money to  the region for electric generate                                                                    
cost, and  was only a  portion of the  electrical generation                                                                    
provided  to the  region. The  regional health  organization                                                                    
lending was new  to the bond bank.  The committee substitute                                                                    
provided  some comfort,  because 51  percent of  the project                                                                    
was a  fund requirement  from other  sources, so  there were                                                                    
borrowing partners.  There were also partners  in evaluating                                                                    
credit, with less exposure on a per loan and project basis.                                                                     
                                                                                                                                
9:12:24 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy asked if the  bill would provide a low risk                                                                    
high   return  outcome.   Mr.   Mitchell   replied  in   the                                                                    
affirmative.  He  stated  that there  would  be  significant                                                                    
financial benefits to regional  health organizations for any                                                                    
portion  of  the  project financing  that  was  accomplished                                                                    
through the bond bank.                                                                                                          
                                                                                                                                
Senator Dunleavy  wondered if the  bill would be a  low risk                                                                    
high return for  the state itself. Mr.  Mitchell deferred to                                                                    
the  Department of  Health and  Social Services  (DHSS). The                                                                    
discussed project  would increase  the level of  health care                                                                    
to the  region, to the  extent that  the state paid  for the                                                                    
cost through  matching federal programs, the  costs would be                                                                    
reduced.                                                                                                                        
                                                                                                                                
Senator Dunleavy  asked if the  bill was low risk  or medium                                                                    
risk  specifically for  the  state.  Mr. Mitchell  responded                                                                    
that  it  must  be  low  risk. There  must  be  100  percent                                                                    
expectation of loan repayment.                                                                                                  
                                                                                                                                
Senator  Dunleavy   wondered  if   there  were   any  issues                                                                    
regarding the addition of the  energy entities. Mr. Mitchell                                                                    
replied in the negative.                                                                                                        
                                                                                                                                
Vice-Chair Micciche stressed that  the state was not issuing                                                                    
bonds, rather  the state was  issuing the  authorization for                                                                    
the bank  to issue a  bond. He requested a  short discussion                                                                    
regarding  due diligence  and risk  evaluation, in  order to                                                                    
assure  the public  that the  committee was  not authorizing                                                                    
the issuance of a specific  bond. He queried the process for                                                                    
issuing  bonds.  Mr. Mitchell  replied  that  the bond  bank                                                                    
program was a  loan program. The bank had a  long history of                                                                    
loans that  had 100 percent repayment.  The process required                                                                    
an  entity to  provide an  application; the  application was                                                                    
reviewed by the  bank staff; then reviewed by  a third party                                                                    
financial advisor;  resulting in  a loan  recommendation. He                                                                    
explained  that there  were  often  scenarios that  outlined                                                                    
credit enhancements  through the  loan structure,  to ensure                                                                    
loan  repayment.  The bank  would  then  provide a  positive                                                                    
recommendation to the board, and  the board must approve the                                                                    
loan.  He  stated  that  the board  approved  more  than  90                                                                    
percent  of   the  loan  recommendations,  but   only  after                                                                    
significant discussion.  He shared  that there  was occasion                                                                    
where  the  board  suggested additional  work  prior  to  an                                                                    
entered  loan. The  bank often  refined  the structure,  and                                                                    
returned to  the board at a  later date. He stated  that the                                                                    
bank tried  not to deny  an application, but  rather suggest                                                                    
appropriate alternatives.                                                                                                       
                                                                                                                                
Vice-Chair  Micciche  queried  the   state's  input  in  the                                                                    
decision  making  process.  Mr. Mitchell  replied  that  the                                                                    
state's involvement  depended on  the specific  partners. He                                                                    
remarked that  the bank did  not have a title  interest, but                                                                    
rather  a  pledge  of  revenue  generation  related  to  the                                                                    
actions of an enterprise.                                                                                                       
                                                                                                                                
9:23:06 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon REMOVED  her objection.  There being  NO                                                                    
further OBJECTION, Work Draft 29-LS0447\1 was ADOPTED.                                                                          
                                                                                                                                
Co-Chair  MacKinnon  wondered  if the  committee  substitute                                                                    
provided  an  acceptable  solution   to  provide  Bethel  an                                                                    
opportunity  to  follow through  on  a  process while  still                                                                    
protecting  the  state.  Senator Hoffman  replied  that  the                                                                    
committee  substitute accomplished  the proposed  goals, and                                                                    
would  broaden the  liability, and  reduces the  exposure by                                                                    
the state. He  remarked that the corporation  felt that they                                                                    
could accomplish their original  goal. He stated that Bethel                                                                    
had  some of  the highest  cost  of living  with the  lowest                                                                    
health care in  the state, which encompassed  an area nearly                                                                    
the size of the state  of Washington. The loan would provide                                                                    
funds  for  a major  health  care  facility in  the  region;                                                                    
provide   increased  health   care  services,   which  would                                                                    
eventually improve  the health  care in the  region; provide                                                                    
an additional 200 jobs; the  jobs would then spur additional                                                                    
housing  to the  region. He  felt that  the legislation  was                                                                    
beneficial to both the state and the Yukon-Kuskokwim Delta.                                                                     
                                                                                                                                
Senator Dunleavy  wondered if there  would be a  fiscal note                                                                    
discussion. Co-Chair MacKinnon replied in the affirmative.                                                                      
                                                                                                                                
9:26:40 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon looked  at the  original version  of the                                                                    
legislation and  noted that there  were some  anticipated GF                                                                    
dollars. She wondered  if the bank needed  an additional $20                                                                    
million  of  GF for  the  reserve  accounts to  balance  the                                                                    
bonds. Mr.  Mitchell responded  that the  discussion related                                                                    
to  the previous  size, and  the  reserve requirement  would                                                                    
diminish. He  remarked that the  bank had a  reserve account                                                                    
to buy an assuredy policy  for the purpose of purchasing the                                                                    
increased  reserve requirement.  The  cost  would then  pass                                                                    
through to the Regional Health Organization.                                                                                    
                                                                                                                                
Co-Chair MacKinnon  wondered what  the bond bank  would need                                                                    
from  the  state, if  the  request  was moved  forward.  Mr.                                                                    
Mitchell  responded that  the reserve  requirement would  be                                                                    
diminished by the downsizing of the authority.                                                                                  
                                                                                                                                
Senator  Dunleavy asked  why access  to  the municipal  bond                                                                    
bank to  joint action agencies  was in the best  interest of                                                                    
the  state, when  they already  have the  power of  a public                                                                    
facilities.  Mr. Mitchell  responded that  there were  often                                                                    
many different alternatives to entities.  He stated that the                                                                    
organization had an alternative,  but the bond bank provided                                                                    
a lower  cost alternative. He  stated that there was  a time                                                                    
when the  bank could not  fund municipal requests  for power                                                                    
generation. Those  statutes were amended first  to allow the                                                                    
bond  bank the  authority for  diesel power  generation, and                                                                    
subsequently hydroelectric power generation.                                                                                    
                                                                                                                                
9:31:38 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy he  wondered if  the state's  credit would                                                                    
back the  project to  a level where  revenue bonds  could be                                                                    
used. Mr.  Mitchell replied  that the  full faith  in credit                                                                    
would not be pledged, rather  the state would pledge a moral                                                                    
obligation.                                                                                                                     
                                                                                                                                
Senator Dunleavy wondered  if the ceiling for  the bond bank                                                                    
was aggregate  or single project. Mr.  Mitchell replied that                                                                    
the  limit was  $1.5  billion for  municipal  loans, and  an                                                                    
additional  $87.5  million  for power/heating  projects.  He                                                                    
stated  that  the  bill would  provide  an  additional  $205                                                                    
million authority. The $1.5 billion  for the general program                                                                    
had  approximately  $40 million  paid  off  bonds per  year,                                                                    
which resulted in a $40 million cap retirement per year.                                                                        
                                                                                                                                
Senator  Dunleavy   queried  the   number  allowed   in  the                                                                    
legislation.  Mr.   Mitchell  replied  that   the  committee                                                                    
substitute  provided $205  million for  the Regional  Health                                                                    
Organization lending.                                                                                                           
                                                                                                                                
Co-Chair  MacKinnon  furthered  that  the  maximum  for  the                                                                    
legislation  was approximately  $100 million.  She explained                                                                    
that  the  $205 million  was  set  to allow  other  regional                                                                    
corporations  to  have  funding  available  under  the  same                                                                    
circumstances. She  shared that it  was better to  have more                                                                    
than one candidate in the pool. Mr. Mitchell agreed.                                                                            
                                                                                                                                
Senator Dunleavy looked at page  7, lines 23 through 25. Co-                                                                    
Chair  MacKinnon  shared  that  no one  single  project  can                                                                    
maximize  the use  of  over  50 percent  of  the funds.  Mr.                                                                    
Mitchell agreed                                                                                                                 
                                                                                                                                
9:36:11 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche looked  at page 7, lines  23 through 25,                                                                    
and  noted that  the  paragraph on  the  limitation did  not                                                                    
apply  to  bonds or  notes  issued  to  fund or  refund.  He                                                                    
wondered  if that  section meant  that the  bond bank  could                                                                    
refinance debt  in addition to  the $205 million,  which was                                                                    
not  originally  issued  by  the  bond  bank.  Mr.  Mitchell                                                                    
replied  that the  language mirrored  language in  Section C                                                                    
for the main program of the  bond bank. The inclusion of the                                                                    
language   was  not   intended  for   an  extra   limit  for                                                                    
refinancing opportunities. It was  intended to allow for the                                                                    
mismatch  between a  potential refinancing,  and the  paying                                                                    
off  of  outstanding  bonds. There  could  be  a  multi-year                                                                    
differential between  when a bond  was refinanced,  and when                                                                    
it was ultimately paid off.                                                                                                     
                                                                                                                                
Vice-Chair Micciche  remarked that the corporation  had some                                                                    
substantial funds in a permanent  fund, and wondered if that                                                                    
was a consideration in the  due diligence in evaluation. Mr.                                                                    
Mitchell responded that the balance  sheet of the entity was                                                                    
involved in the consideration of  the loan, but those assets                                                                    
were  only  pledged as  a  revenue  source. The  corporation                                                                    
could  choose to  not offer  the assets  as collateral.  The                                                                    
bank was  more interested  in the  ongoing viability  of the                                                                    
organization, and its ability to  cover the debt in addition                                                                    
to its current operation.                                                                                                       
                                                                                                                                
Vice-Chair Micciche surmised that  a health care facility in                                                                    
Anchorage  would remain  marketable.  He felt  that a  large                                                                    
health care facility may not  have a large revenue stream in                                                                    
a  smaller community  like Bethel.  He wondered  if location                                                                    
was  considered  when  determining the  loan.  Mr.  Mitchell                                                                    
replied that the  value of assets did not  typically go into                                                                    
the analysis, as much as  the title interest in the building                                                                    
as security for the loan.                                                                                                       
                                                                                                                                
Co-Chair MacKinnon  remarked that the funding  was available                                                                    
for only regional health corporations  or any private health                                                                    
corporations. Mr.  Mitchell replied that the  funds would be                                                                    
intended  for regional  health  corporations  as defined  in                                                                    
statute.                                                                                                                        
                                                                                                                                
9:41:12 AM                                                                                                                    
                                                                                                                                
Senator  Bishop  assumed that  the  utility  would pass  the                                                                    
savings  as lower  rates  to the  consumers  because of  the                                                                    
lower cost of borrowing. Mr. Mitchell agreed.                                                                                   
                                                                                                                                
Vice-Chair Micciche addressed the fiscal notes.                                                                                 
                                                                                                                                
9:44:00 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:45:29 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:45:33 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  commented that  the fiscal  note needed                                                                    
to be updated.                                                                                                                  
                                                                                                                                
Vice-Chair Micciche looked at  the indeterminate fiscal note                                                                    
from Department of Health and Social Services.                                                                                  
                                                                                                                                
Co-Chair  MacKinnon  queried  the expected  changes  in  the                                                                    
forthcoming  fiscal  note.  Mr. Mitchell  replied  that  the                                                                    
fiscal  note services  line would  be diminished  similar to                                                                    
the size of the issuance authority.                                                                                             
                                                                                                                                
Co-Chair  MacKinnon  queried  costs related  to  adding  the                                                                    
joint agencies.  Mr. Mitchell did  not anticipate  any added                                                                    
costs.                                                                                                                          
                                                                                                                                
9:48:58 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:50:52 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:51:00 AM                                                                                                                    
                                                                                                                                
Senator Hoffman commented that the  legislation was a unique                                                                    
opportunity  to finance  and improve  health  care in  rural                                                                    
areas of the state.                                                                                                             
                                                                                                                                
                                                                                                                                
Senator  Bishop   echoed  Senator  Hoffman's   comments.  He                                                                    
supported the committee  substitute, and felt that  it was a                                                                    
reasonable compromise.                                                                                                          
                                                                                                                                
Senator  Olson remarked  that he  had practiced  medicine in                                                                    
the rural  offices, and shared  that there was a  great lack                                                                    
of facilities in some villages.                                                                                                 
                                                                                                                                
Vice-Chair  Micciche MOVED  to  REPORT CSSB  46(FIN) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 46(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation and  with one new  zero fiscal note  from the                                                                    
Department  of Revenue;  and  one  new indeterminate  fiscal                                                                    
note from the Department of Health and Social Services.                                                                         
                                                                                                                                
9:54:52 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:56:49 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 140                                                                                                            
                                                                                                                                
     "An Act authorizing the  Alaska Railroad Corporation to                                                                    
     issue  revenue  bonds  to   finance  a  positive  train                                                                    
     control   rail  transportation   safety  project   that                                                                    
     qualifies  for  federal  financial  participation;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:57:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STEVE  THOMPSON,  SPONSOR,  highlighted  the                                                                    
basic  aspects of  the legislation.  He stated  that HB  140                                                                    
will  authorize the  Alaska Railroad  Corporation (ARRC)  to                                                                    
issue  up  to $37  million  in  tax-exempt bonds  backed  by                                                                    
Federal Transit Administration  (FTA) formula funds received                                                                    
annually  by ARRC.  Bond proceeds  will be  used to  finance                                                                    
Positive Train  Control (PTC): a safety  program mandated by                                                                    
the  federal  government  without any  correlating  funding,                                                                    
which is estimated to cost ARRC approximately $158 million.                                                                     
                                                                                                                                
Vice-Chair Micciche commented that  PTC was an irresponsible                                                                    
unfunded federal mandate, counter  to all reasonable metrics                                                                    
related  to  any  substantive  reduction  to  public  safety                                                                    
risks.                                                                                                                          
                                                                                                                                
Vice-Chair  Micciche  looked  at the  attached  zero  impact                                                                    
note.                                                                                                                           
                                                                                                                                
Vice-Chair Micciche MOVED to REPORT  HB 140 out of committee                                                                    
with  individual recommendations  and the  accompanying zero                                                                    
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
HB  140 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with   one  previously  published  zero                                                                    
fiscal note: FN1 (CED).                                                                                                         
                                                                                                                                
10:01:07 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:03:56 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 158(FIN)                                                                                                
                                                                                                                                
     "An Act relating to a refined fuel surcharge; relating                                                                     
     to the motor fuel tax; relating to a qualified dealer                                                                      
     license; and providing for an effective date."                                                                             
                                                                                                                                
10:04:19 AM                                                                                                                   
                                                                                                                                
Vice-Chair Micciche  MOVED to  ADOPT the  proposed committee                                                                    
substitute,  for   CSHB  158(FIN),  Work   Draft  29-LS060\F                                                                    
(Nauman,   4/14/15).   Co-Chair   MacKinnon   OBJECTED   for                                                                    
discussion.                                                                                                                     
                                                                                                                                
ERIN SHINE,  STAFF, SENATOR ANNA MACKINNON,  stated that the                                                                    
committee substitute  corrected a drafting error  related to                                                                    
the labeling of the bill.                                                                                                       
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
further OBJECTION, the Work Draft 29-LS060\F was ADOPTED.                                                                       
                                                                                                                                
REPRESENTATIVE CATHY  MUNOZ, SPONSOR, thanked  the committee                                                                    
for considering  the legislation.  She was  comfortable with                                                                    
the change in the surcharge  amount and the letter of intent                                                                    
language.                                                                                                                       
                                                                                                                                
Vice-Chair Micciche looked at the fiscal notes.                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  clarified  the  fiscal  note  component                                                                    
numbers.                                                                                                                        
                                                                                                                                
Vice-Chair  Micciche MOVED  to REPORT  SCS CSHB  158 out  of                                                                    
committee with  individual recommendations,  attached letter                                                                    
of intent, and the accompanying fiscal notes.                                                                                   
                                                                                                                                
SCS CSHB 158(FIN)  was REPORTED out of committee  with a "do                                                                    
pass" recommendation  and with   attached letter  of intent;                                                                    
one  new   fiscal  impact  note  from   the  Senate  Finance                                                                    
Committee; one new  zero impact note from  the Department of                                                                    
Revenue; and one previously published  zero impact note: FN1                                                                    
(DEC).                                                                                                                          
                                                                                                                                
10:08:45 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:10:39 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 161(HSS)                                                                                                
                                                                                                                                
     "An Act relating to the purchase of durable medical                                                                        
     equipment under Medicaid; and providing for an                                                                             
     effective date."                                                                                                           
                                                                                                                                
10:11:27 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  LYNN  GATTIS,  SPONSOR, explained  that  the                                                                    
bill  was  a   cost  saving  measure  for   the  state.  The                                                                    
legislation   allowed  for   DHSS   to   purchase  used   or                                                                    
refurbished durable medical equipment.                                                                                          
                                                                                                                                
Vice-Chair Micciche addressed the zero fiscal note.                                                                             
                                                                                                                                
Vice-Chair  Micciche MOVED  to REPORT  CSHB 161(HSS)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  161 was  REPORTED out  of committee  with a  "do pass"                                                                    
recommendation  and  with   one  previously  published  zero                                                                    
impact note: FN1 (DHS).                                                                                                         
                                                                                                                                
10:13:08 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:14:46 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed the following meeting's                                                                            
agenda.                                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:15:33 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:15 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 158 - Alper to MacKinnon re HB158-SB86 4-09-15.pdf SFIN 4/15/2015 9:00:00 AM
HB 158
SB 86