Legislature(2019 - 2020)SENATE FINANCE 532

05/06/2019 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 106 SCHOOL BOND DEBT REIMBURSEMENT TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 14 ASSAULT; SEX OFFENSES; SENT. AGGRAVATOR TELECONFERENCED
Moved SCS CSHB 14(FIN) Out of Committee
+= SB 91 NUYAKUK RIVER: HYDROELECTRIC SITE TELECONFERENCED
Moved CSSB 91(FIN) Out of Committee
                  SENATE FINANCE COMMITTEE                                                                                      
                         May 6, 2019                                                                                            
                          9:01 a.m.                                                                                             
                                                                                                                                
9:01:20 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  von  Imhof  called the  Senate  Finance  Committee                                                                    
meeting to order at 9:01 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Natasha von Imhof, Co-Chair                                                                                             
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Peter Micciche                                                                                                          
Senator Mike Shower                                                                                                             
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Donny Olson                                                                                                             
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Juli Lucky,  Staff, Senator Natasha von  Imhof; Sylvan Robb,                                                                    
Administrative    Services     Director,    Department    of                                                                    
Corrections,    Office    of    Management    and    Budget;                                                                    
Representative John Lincoln,  Sponsor; Representative Tammie                                                                    
Wilson, Sponsor; Nils  Andreasen, Executive Director, Alaska                                                                    
Municipal  League; Senator  Cathy Giessel;  Elwin Blackwell,                                                                    
School Finance  Manager, Department  of Education  and Early                                                                    
Development; Tim Mearig,  Facilities Director, Department of                                                                    
Education and Early Development.                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Jim Anderson, Anchorage School District, Anchorage.                                                                             
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 91     NUYAKUK RIVER: HYDROELECTRIC SITE                                                                                     
                                                                                                                                
          CSSB 91(FIN) was REPORTED out  of committee with a                                                                    
          "no  recommendation" recommendation  and with  one                                                                    
          previously  published   fiscal  impact   note:  FN                                                                    
          1(DNR).                                                                                                               
                                                                                                                                
                                                                                                                                
CSHB 14(FIN)                                                                                                                    
          ASSAULT; SEX OFFENSES; SENT. AGGRAVATOR                                                                               
                                                                                                                                
          SCS  CSHB 14(FIN)  was REPORTED  out of  committee                                                                    
          with a  "do pass" recommendation and  with one new                                                                    
          fiscal impact from  the Department of Corrections;                                                                    
          one new zero fiscal  note from the Alaska Judicial                                                                    
          System; one  new Statement  of Zero  Fiscal Impact                                                                    
          for the Department of  Health and Social Services,                                                                    
          the  Department  of  Law, and  the  Department  of                                                                    
          Public  Safety;   and  two   previously  published                                                                    
          indeterminate fiscal notes: FN 8(ADM), FN 9(ADM).                                                                     
                                                                                                                                
HB 106    SCHOOL BOND DEBT REIMBURSEMENT                                                                                        
                                                                                                                                
          HB  106  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 14(FIN)                                                                                                 
                                                                                                                                
     "An  Act  relating  to assault  in  the  first  degree;                                                                    
     relating  to  harassment;  relating  to  sex  offenses;                                                                    
     relating to  the definition of  'dangerous instrument';                                                                    
     providing for  an aggravating factor at  sentencing for                                                                    
     strangulation   that    results   in   unconsciousness;                                                                    
     relating  to the  duties of  the prosecuting  attorney;                                                                    
     and relating to victim notifications."                                                                                     
                                                                                                                                
9:02:00 AM                                                                                                                    
                                                                                                                                
Co-Chair von Imhof relayed that the committee had heard the                                                                     
Senate version of the bill (SB 14) on May 11, 2019; and SB                                                                      
14 was heard on May 4, 2019.                                                                                                    
                                                                                                                                
9:02:54 AM                                                                                                                    
                                                                                                                                
JULI LUCKY, STAFF, SENATOR NATASHA VON IMHOF, spoke to the                                                                      
changes in the committee substitute (CS). She discussed the                                                                     
Explanation of Changes document (copy on file):                                                                                 
     The  word  "ejaculate"  is  replaced  with  "semen"  to                                                                    
     better conform  to current statute and  legal precedent                                                                    
     and that term  is defined. [P3, Line 6 and  new ?5: P3,                                                                    
     Lines 17-19]                                                                                                               
                                                                                                                                
     The  rest  of the  changes  relate  to granting  credit                                                                    
     against a  sentence for time  spent in treatment  or on                                                                    
     electronic monitoring (EM),  which necessitates a title                                                                    
     change  and  conforming  changes to  the  applicability                                                                    
     language in section 11. [New ?6 & ?7]                                                                                      
                                                                                                                                
     Current  AS  12.55.027(g)  allows offenders  guilty  of                                                                    
     certain serious  crimes to  receive limited  credit for                                                                    
     time  spent on  Electronic Monitoring  (EM). SCS  HB 14                                                                    
     (FIN)  prohibits  credit  for EM  for  those  specified                                                                    
     crimes but  clarifies that credit  can be  granted when                                                                    
     the  defendant   is  on   EM  while   participating  in                                                                    
     residential treatment.  Sex offenders are  removed from                                                                    
     this  list and  cannot  get credit  for  time spent  in                                                                    
     treatment OR on EM. [P3, Line 21  P4, Line 4]                                                                              
                                                                                                                                
     Further  clarifies in  (j) that  judges will  determine                                                                    
   whether the sentence meets the declaration of purpose                                                                        
     criteria listed in AS  12.55.005 before granting credit                                                                    
     and in  (k) that time  cannot be "double counted"  if a                                                                    
     defendant  was on  EM while  receiving treatment.  [P4,                                                                    
     Lines 5-11].                                                                                                               
                                                                                                                                
9:05:53 AM                                                                                                                    
                                                                                                                                
Ms.  Lucky stated  that  the  language in  (j)  and (k)  was                                                                    
clarifying  language  meant  to  provide  direction  to  the                                                                    
court. She relayed  that a title change  resolution would be                                                                    
needed if the  CS were adopted by the committee,  as well as                                                                    
applicability  changes in  Section  11. She  added that  the                                                                    
adoption of the CS would change the fiscal notes.                                                                               
                                                                                                                                
9:07:24 AM                                                                                                                    
                                                                                                                                
Co-Chair von Imhof solicited comments from the committee.                                                                       
                                                                                                                                
Senator   Micciche   understood   that  the   bill   defined                                                                    
strangulation to  the point of  unconsciousness as  a crime,                                                                    
as well  as other changes.  He shared that he  supported the                                                                    
electronic monitoring language.                                                                                                 
                                                                                                                                
9:09:24 AM                                                                                                                    
Senator  Hoffman  directed  attention  to  the  most  recent                                                                    
adoption of  Section K, which specified  that the electronic                                                                    
monitoring and  treatment programs  did not  have to  be run                                                                    
simultaneously. He asked whether the  intent of the bill was                                                                    
to allow for the credits to be claimed simultaneously.                                                                          
                                                                                                                                
Ms. Lucky stated that the intent  of the section was that if                                                                    
a person  was under  electronic monitoring and  in treatment                                                                    
simultaneously,  credit could  not  be given  for both.  She                                                                    
stressed that the  issue had been debated  rigorously and it                                                                    
had  been  decided  that  if   a  person  had  a  period  of                                                                    
electronic  monitoring  while  not  in  treatment,  or  vice                                                                    
versa,  they could  request credit  for  what was  available                                                                    
under the law. She noted that  some crimes did not allow for                                                                    
electronic monitoring credit. She  said that if the offender                                                                    
was  in  treatment  on  the  same day  as  they  were  under                                                                    
electronic monitoring, they  could not count it  as two days                                                                    
of credit.                                                                                                                      
                                                                                                                                
9:11:29 AM                                                                                                                    
                                                                                                                                
Senator Micciche reminded that  the combination would be for                                                                    
other  crimes and  not the  crimes on  the list  of "serious                                                                    
crimes" as  defined in  the CS.  For serious  crimes, credit                                                                    
could only be given for time spent in treatment.                                                                                
                                                                                                                                
9:12:25 AM                                                                                                                    
                                                                                                                                
Ms.   Lucky   reviewed  FN   8   from   the  Department   of                                                                    
Administration,   OMB    Component   43.   The    note   was                                                                    
indeterminate because the Office  of Public Assistance could                                                                    
not speak to how many new cases  it might take on in the out                                                                    
years.                                                                                                                          
                                                                                                                                
Ms. Lucky  reviewed FN 9 from  Department of Administration,                                                                    
OMB   Component  1631.   She   noted  that   the  note   was                                                                    
indeterminate for the same reasons as FN 8.                                                                                     
                                                                                                                                
Ms. Lucky reviewed a Statement  of Zero Fiscal Impact, which                                                                    
replaced  all  the  individual  zero  fiscal  notes  in  the                                                                    
packet, these  notes reflect that  no changes  in regulation                                                                    
and/or  costs  will  be absorbed  by  the  departments.  The                                                                    
departments  included the  Department of  Health and  Social                                                                    
Services,  Department  of  Law,  and  Department  of  Public                                                                    
Safety.                                                                                                                         
                                                                                                                                
Ms. Lucky  addressed a new  fiscal note from  the Judiciary,                                                                    
OMB Component 768. She noted  that the note was not included                                                                    
in the  consolidated zero notes  as it  was not part  of the                                                                    
executive branch.                                                                                                               
                                                                                                                                
Ms.  Lucky   addressed  a  new   fiscal  impact   note  from                                                                    
Department of  Corrections, OMB Component 1381.  She relayed                                                                    
that the department would address the note.                                                                                     
                                                                                                                                
9:15:16 AM                                                                                                                    
                                                                                                                                
SYLVAN  ROBB, ADMINISTRATIVE  SERVICES DIRECTOR,  DEPARTMENT                                                                    
OF CORRECTIONS,  OFFICE OF MANAGEMENT AND  BUDGET, addressed                                                                    
the  new   fiscal  impact  note   from  the   Department  of                                                                    
Corrections. She  noted that  the fiscal  note was  a draft.                                                                    
The changes to  the note from the  previously published note                                                                    
related to credit for electronic  monitoring. The removal of                                                                    
credit  for electronic  monitoring would  result in  several                                                                    
individuals   spending  additional   time  in   correctional                                                                    
facilities. She said that the  department projected that the                                                                    
change  would  impact  363 defendants  that  had  previously                                                                    
received credit  for EM, and  those individuals  would spend                                                                    
an  additional 36.6  days in  incarceration, increasing  the                                                                    
daily  population by  35.5 inmates.  She furthered  that the                                                                    
cost for  the inmates  had been  calculated at  the marginal                                                                    
rate of $44.98  per day. She stated that  after talking with                                                                    
the Deputy Director of Health and Rehabilitation Services                                                                       
and  the  Director  of  Probation,  Parole,  and  Pre-Trial,                                                                    
failed to  result in data  on how many  individuals attended                                                                    
residential  treatment  pre-trial.   A  projected  estimate,                                                                    
without actual data,  was that 10 percent  would receive the                                                                    
credit,  which would  bring the  projected  increase to  the                                                                    
daily population down from 35.5 to 32.                                                                                          
                                                                                                                                
9:18:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHN  LINCOLN, SPONSOR,  thought the  CS made                                                                    
the bill  stronger and better, particularly  with regards to                                                                    
electronic monitoring. He thanked  the committee for working                                                                    
on the bill.                                                                                                                    
                                                                                                                                
9:19:02 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman was  appreciative of the thanks  and of the                                                                    
work between the house and the  senate. He noted that it was                                                                    
the sponsor's birthday.                                                                                                         
                                                                                                                                
Representative Lincoln acknowledged  Senator Micciche's work                                                                    
on  the bill.  He  appreciated the  collaborative nature  of                                                                    
their working relationship.                                                                                                     
                                                                                                                                
9:20:29 AM                                                                                                                    
                                                                                                                                
Senator   Micciche  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for CSHB  14, Work  Draft 31-LS0182\H  (Radford,                                                                    
5/5/19). There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
Co-Chair von Imhof noted that  there were invited testifiers                                                                    
online to answer questions.                                                                                                     
                                                                                                                                
9:21:31 AM                                                                                                                    
                                                                                                                                
Senator Micciche offered brief  a brief closing statement on                                                                    
the legislation.                                                                                                                
                                                                                                                                
Senator Micciche  MOVED to  report SCS  CSHB 14(FIN)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB  14(FIN) was REPORTED  out of committee with  a "do                                                                    
pass"  recommendation and  with one  new fiscal  impact from                                                                    
the  Department of  Corrections;  one new  zero fiscal  note                                                                    
from the Alaska  Judicial System; one new  Statement of Zero                                                                    
Fiscal  Impact  for  the Department  of  Health  and  Social                                                                    
Services,  the  Department of  Law,  and  the Department  of                                                                    
Public  Safety; and  two previously  published indeterminate                                                                    
fiscal notes: FN 8(ADM), FN 9(ADM).                                                                                             
                                                                                                                                
SENATE BILL NO. 91                                                                                                            
                                                                                                                                
     "An Act relating to the  development and operation of a                                                                    
     hydroelectric   site  at   the  Nuyakuk   River  Falls;                                                                    
     providing for the amendment of  the management plan for                                                                    
     the  Wood-Tikchik  State  Park; and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:23:45 AM                                                                                                                    
                                                                                                                                
Co-Chair  von   Imhof  relayed  that   the  bill   had  been                                                                    
previously  heard on  April 30,  2019. Public  testimony had                                                                    
been taken and was closed.                                                                                                      
                                                                                                                                
9:24:30 AM                                                                                                                    
                                                                                                                                
Ms. Lucky  discussed the proposed  changes to the  bill. She                                                                    
emphasized that the intent of  the bill had not changed. She                                                                    
spoke to an Explanation of Changes document (copy on file):                                                                     
                                                                                                                                
     AS 41.21.161  Establishes the Wood-Tikchik  State Park;                                                                    
     AS  41.21.167  lists  incompatible uses  and  specifies                                                                    
     certain uses  that are allowed  (or "not  considered an                                                                    
     incompatible use").                                                                                                        
                                                                                                                                
     The  previous  version  of SB91  simply  added  Nuyakuk                                                                    
     River  Falls to  existing  section  (c), which  allowed                                                                    
     development and  operation of a hydroelectric  site and                                                                    
     Lake Elva or Grant Lake.                                                                                                   
                                                                                                                                
     The proposed  CS puts this  project in its  own section                                                                    
     (e)  and defines  specific  conditions  for this  site,                                                                    
     listed on  page 1, lines  8-11, in order to  respond to                                                                    
     local concerns about this project.                                                                                         
                                                                                                                                
Ms. Lucky stated  that the conditions for  the site included                                                                    
in the new subsection were as follows:                                                                                          
                                                                                                                                
     (e) The  development and  operation of  a hydroelectric                                                                    
     site at the Nuyakuk River  Falls is a compatible use if                                                                    
     the development and operation                                                                                              
          (1) does not include a dam that fully spans a                                                                         
          river;                                                                                                                
          (2) maintains at least 70 percent of the daily                                                                        
          upstream water flow of an affected river along                                                                        
          the natural course of the river; and                                                                                  
          (3) after July 1, 2024, is licenses by the                                                                            
          Federal Energy Regulatory Commission                                                                                  
                                                                                                                                
9:26:42 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman thanked  Co-Chair  von  Imhof's office  for                                                                    
accommodating the  conditions. He supported adoption  of the                                                                    
CS.                                                                                                                             
                                                                                                                                
Co-Chair   Stedman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for  SB  91, Work  Draft  31-LS0520\S  (Wallace,                                                                    
Fisher,  5/4/19).  There  being  NO  OBJECTION,  it  was  so                                                                    
ordered.                                                                                                                        
                                                                                                                                
CSSB  91(FIN)  was REPORTED  out  of  committee with  a  "no                                                                    
recommendation"  recommendation  and   with  one  previously                                                                    
published fiscal impact note: FN 1(DNR).                                                                                        
                                                                                                                                
HOUSE BILL NO. 106                                                                                                            
                                                                                                                                
     "An Act relating to school bond debt reimbursement."                                                                       
                                                                                                                                
9:28:29 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:29:34 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
REPRESENTATIVE TAMMIE WILSON,  SPONSOR, explained that House                                                                    
Bill 106  would extend the  termination date for  the school                                                                    
bond debt                                                                                                                       
                                                                                                                                
Co-Chair  von Imhof  explained that  currently  there was  a                                                                    
moratorium on  school bond debt reimbursement  through 2020,                                                                    
the bill would extend it an additional 5 years.                                                                                 
                                                                                                                                
9:31:08 AM                                                                                                                    
                                                                                                                                
9:31:19 AM                                                                                                                    
                                                                                                                                
Co-Chair von Imhof OPENED public testimony.                                                                                     
                                                                                                                                
9:31:35 AM                                                                                                                    
                                                                                                                                
JIM  ANDERSON,  ANCHORAGE  SCHOOL DISTRICT,  ANCHORAGE  (via                                                                    
teleconference),  spoke  in  opposition   to  the  bill.  He                                                                    
explained that  the current house  budget already  cut prior                                                                    
year bond  debt reimbursement  by 50  percent going  back 20                                                                    
years.  He  said  that  adding   the  additional  burden  on                                                                    
receiving  no debt  assistance through  2025  would put  the                                                                    
onus  on Anchorage  taxpayers. He  stated that  shifting the                                                                    
states  responsibility  for bond  debt did not  decrease the                                                                    
requirement but  shifted it to those  living in incorporated                                                                    
areas.   He  stressed   that   supporting  education   meant                                                                    
supporting the operation of school,  the people in them, and                                                                    
their capital needs.                                                                                                            
                                                                                                                                
9:33:06 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  understood  that  the  bill  would  be  a                                                                    
moratorium  on adding  new  reimbursement requirements  onto                                                                    
the state going forward. He  did not think the bill impacted                                                                    
the accumulated school  construction already undertaken. The                                                                    
state would still annually consider  how much debt the state                                                                    
would be  reimbursing. He wanted  to clarify for  the public                                                                    
that  the bill  would block  new projects  from being  added                                                                    
until an alternative policy could be crafted.                                                                                   
                                                                                                                                
Co-Chair  von  Imhof  affirmed  that  Co-Chair  Stedman  was                                                                    
correct, and  the bill  was a  look forward  and not  a look                                                                    
back. She  asked whether the  Anchorage School  District had                                                                    
done  an  excess  capacity analysis  on  its  60  elementary                                                                    
schools.                                                                                                                        
                                                                                                                                
9:34:24 AM                                                                                                                    
                                                                                                                                
Mr. Anderson answered in the  affirmative and specified that                                                                    
the school board  had been briefed in the fall.  It had been                                                                    
recommended  that the  Mount Spur  school should  be closed,                                                                    
and  some programs  should be  merged. He  related that  the                                                                    
recommendation  had   been  based  on  the   city  planners                                                                     
assessments on  sum population growth in  certain areas over                                                                    
the next 20  years. He said that the analysis  would be done                                                                    
annually in the future. He  thought that closing schools was                                                                    
an  emotional   issue  but   believed  that   if  membership                                                                    
continued to decrease more schools would be closed.                                                                             
                                                                                                                                
Co-Chair von Imhof recalled that  the body passed a bill the                                                                    
previous  year  allowing  for school  closures  and  holding                                                                    
harmless  the revenue  for a  step-down of  four years.  The                                                                    
intent had  been to encourage schools  to have conversations                                                                    
about  capturing capacity  in schools.  She thought  that if                                                                    
emotions ran  high and  people did not  want to  close their                                                                    
local schools    that was a choice that board  would have to                                                                    
make,  and  the   cost  would  be  passed   onto  the  local                                                                    
taxpayers.  She asserted  that the  control  was within  the                                                                    
school district to make the  decision whether to maintain 60                                                                    
elementary schools, 8 middle schools and 8 high schools.                                                                        
                                                                                                                                
9:36:57 AM                                                                                                                    
                                                                                                                                
Senator Micciche looked at the  table on the document titled                                                                    
"State Portion Reimbursement  Principal and Interest," (copy                                                                    
on file).  He was  curious about  the proportion  related to                                                                    
major  maintenance versus  new  school  construction of  the                                                                    
$800 million  in bond debt.  He noted the  disparity between                                                                    
organized and unorganized boroughs.                                                                                             
                                                                                                                                
9:38:35 AM                                                                                                                    
                                                                                                                                
NILS   ANDREASEN,  EXECUTIVE   DIRECTOR,  ALASKA   MUNICIPAL                                                                    
LEAGUE, relayed  that the Department of  Education and Early                                                                    
Developments   (DEED) 6-year  plan  showed  $464 million  in                                                                    
needs  for FY20;  $189 million  in  needs for  FY21; and  an                                                                    
average over the  next 6 years of $231 million.  For the 355                                                                    
projects listed the  total in upgrades was  $1.4 billion. He                                                                    
said that  the requests  that had  been submitted  by school                                                                    
districts did not  account for the full scope  of need, only                                                                    
priorities  relative  to  each  budget year,  and  were  not                                                                    
included in  the states   deferred maintenance  numbers. For                                                                    
the  school construction  program  DEED  showed the  average                                                                    
need  between  FY15  and  FY20 was  $234  million,  with  an                                                                    
average of $230 million paid  over those years. He furthered                                                                    
that the  number of  schools funded by  the $190  million in                                                                    
FY20   was   approximately   6,   the   school   bond   debt                                                                    
reimbursement  for  that same  year  of  under $100  million                                                                    
accounted for  nearly 30 schools.  He stressed  that without                                                                    
the reimbursement those districts able  to bond for the debt                                                                    
would  have  to  compete  with   REA  school  districts  for                                                                    
funding,  or other  municipal school  districts that  lacked                                                                    
the tax base  to bond for a greater share  of debt. He asked                                                                    
how the  state identified the  unaversive need and  what was                                                                    
the plan to address the  need. He believed that the proposed                                                                    
moratorium   did  not   meet   the  states    constitutional                                                                    
obligations.  He  thought  that  the  5-year  extension  was                                                                    
nothing  but a  recognition that  the state  did not  have a                                                                    
plan to  address new school  construction. He  believed that                                                                    
the legislature could seek other  options that would benefit                                                                    
both the state and municipal districts.                                                                                         
                                                                                                                                
9:42:34 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
9:42:42 AM                                                                                                                    
                                                                                                                                
Co-Chair von Imhof CLOSED public testimony.                                                                                     
                                                                                                                                
9:43:21 AM                                                                                                                    
                                                                                                                                
Senator  Micciche thought  the  state could  not afford  new                                                                    
schools and  he would  likely support  a moratorium  of some                                                                    
kind. He  asked what percentage of  the debt had to  do with                                                                    
new schools, and how much had  to do with maintenance of old                                                                    
schools.                                                                                                                        
                                                                                                                                
ELWIN  BLACKWELL,  SCHOOL  FINANCE  MANAGER,  DEPARTMENT  OF                                                                    
EDUCATION  AND EARLY  DEVELOPMENT,  said that  he would  get                                                                    
back to the committee with the information.                                                                                     
                                                                                                                                
9:45:23 AM                                                                                                                    
                                                                                                                                
Senator  Micciche   guessed  that  there  needed   to  be  a                                                                    
separation  of new  construction  and  major maintenance  of                                                                    
existing schools when it came to bond debt reimbursement.                                                                       
                                                                                                                                
9:46:10 AM                                                                                                                    
                                                                                                                                
Co-Chair von  Imhof asked whether  DEED travelled  the state                                                                    
to  inspect  the  condition  of schools  and  how  well  the                                                                    
buildings were being maintained.  She wondered whether there                                                                    
were degrees of differences with regard to maintenance.                                                                         
                                                                                                                                
TIM  MEARIG, FACILITIES  DIRECTOR,  DEPARTMENT OF  EDUCATION                                                                    
AND EARLY DEVELOPMENT, stated that  statute provided for the                                                                    
department  to  have  an  ongoing  inspection  process  with                                                                    
districts  to ensure  that minimum  standards  of care  were                                                                    
met. The  division had an  individual that travelled  to ten                                                                    
school districts  per year to  evaluate the  compliance with                                                                    
facility  and maintenance  practices and  retain eligibility                                                                    
for bond reimbursement  and grants. He had not  seen a great                                                                    
deal of disparity in the  condition of buildings of the same                                                                    
age.   He   admitted   that  older   buildings   were   more                                                                    
challenging.                                                                                                                    
                                                                                                                                
9:48:51 AM                                                                                                                    
                                                                                                                                
Co-Chair von  Imhof assumed that  the department had  a list                                                                    
of  all  the  buildings  and  a  matrix  through  which  the                                                                    
buildings were prioritized based on age and condition.                                                                          
                                                                                                                                
Mr.  Mearig   stated  that   the  state   did  not   have  a                                                                    
comprehensive facility  evaluation tool or  requirement. The                                                                    
state  required  a district  to  have  an understanding  and                                                                    
condition  of  facilities.  He  said  that  in  the  Capital                                                                    
Renewal portion  of the Minimum Standards  each district was                                                                    
required to  understand the age  and capital needs  of their                                                                    
facilities that were over 1000 square feet.                                                                                     
                                                                                                                                
9:50:23 AM                                                                                                                    
Co-Chair von  Imhof believed  the state  built a  school for                                                                    
Healy  Lake; after  which the  population  dropped, and  the                                                                    
school was not opened.                                                                                                          
                                                                                                                                
Mr. Mearig replied  that he did not  have enough information                                                                    
to comment on the school at Healy Lake.                                                                                         
                                                                                                                                
Co-Chair von Imhof requested  further information on whether                                                                    
the  state  was paying  to  maintain,  heat, or  insure  the                                                                    
building, and whether there was a plan for the building.                                                                        
                                                                                                                                
9:51:06 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman wanted to know  how many schools were close                                                                    
to the minimum count of  10 students. He agreed with Senator                                                                    
Micciche's  request for  a  breakdown  of the  reimbursement                                                                    
requests.  He wanted  to  add  a request  for  a per  capita                                                                    
numeric. He used  examples of the debt carried  by Sitka and                                                                    
Ketchikan. He  asserted that his region  needed students and                                                                    
not  new  schools,  but  the Mat-Su  was  the  opposite.  He                                                                    
reminded   that   K-12   education  was   a   constitutional                                                                    
requirement.                                                                                                                    
                                                                                                                                
9:54:33 AM                                                                                                                    
                                                                                                                                
Senator Shower  appreciated the comments from  the co-chairs                                                                    
and supported  the concept of  the bill. He agreed  that the                                                                    
Mat-Su was growing. He had  spoken to several individuals in                                                                    
the  educational   system.  He  discussed   his  educational                                                                    
background  in the  State of  Florida. He  thought that  the                                                                    
committee needed more data in order to make decisions.                                                                          
                                                                                                                                
9:56:22 AM                                                                                                                    
                                                                                                                                
Senator Bishop remarked that the  committee had had the same                                                                    
conversation thirty  years previously. He  mentioned Rampart                                                                    
School was  closed for  a period of  ten years,  after which                                                                    
population grew  and the school  reopened. He  asserted that                                                                    
there was nothing static about the equation.                                                                                    
                                                                                                                                
9:57:30 AM                                                                                                                    
                                                                                                                                
Co-Chair von Imhof  thought it was important to  use data to                                                                    
drive policy  decisions. She suggested  that if  DEED wanted                                                                    
assistance   from  the   committee,  more   data  would   be                                                                    
necessary. She asserted that  school maintenance data should                                                                    
be entered into a database. She  thought the age of a school                                                                    
building  was irrelevant.  She  thought  some schools  fared                                                                    
better  than  others  over  time due  to  weather  or  other                                                                    
factors.  She  reiterated  the  need  for  DEED  to  provide                                                                    
further information.                                                                                                            
                                                                                                                                
9:59:36 AM                                                                                                                    
                                                                                                                                
Senator Bishop addressed FN 1 from Debt Service, OMB                                                                            
Component 153. The note had zero fiscal impact.                                                                                 
                                                                                                                                
Co-Chair von Imhof set the bill aside.                                                                                          
                                                                                                                                
HB 106 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
10:00:27 AM                                                                                                                   
RECESSED                                                                                                                        
                                                                                                                                
2:35:24 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
2:35:36 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:35 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB106 ver A Sponsor Statement 3.26 (1).pdf HFIN 4/1/2019 1:30:00 PM
SFIN 5/6/2019 9:00:00 AM
HB 106
HB106 ver A Back Up Information - School Debt Spreadsheet 4.17.19.pdf SFIN 5/6/2019 9:00:00 AM
SFIN 2/14/2020 9:00:00 AM
HB 106
SB 91 CS SB 91 (FIN) v. S work draft.pdf SFIN 5/6/2019 9:00:00 AM
SB 91
SB 91 CS SB 91 (FIN) v. S Explanation.pdf HRES 5/8/2019 1:00:00 PM
HRES 5/10/2019 1:00:00 PM
SFIN 5/6/2019 9:00:00 AM
SB 91
HB 14 SCS CSHB 14 (FIN) v. H Statutory References.pdf SFIN 5/6/2019 9:00:00 AM
HB 14
HB 14 SCS CSHB 14 (FIN) v. H.pdf SFIN 5/6/2019 9:00:00 AM
HB 14
HB 14 SCS CSHB 14 (FIN) v. H Explanation.pdf SFIN 5/6/2019 9:00:00 AM
HB 14