Legislature(2007 - 2008)SENATE FINANCE 532
04/11/2008 09:00 AM Senate FINANCE
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 366 | TELECONFERENCED | |
| + | SB 160 | TELECONFERENCED | |
| + | HB 65 | TELECONFERENCED | |
| += | HB 50 | TELECONFERENCED | |
| += | HB 332 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 2 | TELECONFERENCED | |
| += | HB 226 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 11, 2008
9:22 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 9:22:29 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
None
ALSO PRESENT
Senator Hollis French; David Gray, Staff, Senator Donny
Olson; Guy Bell, Assistant Commissioner and Director,
Division of Administrative Services, Department of Labor and
Workforce Development; Representative Mark Neuman; Pat
Pitney, Vice President, Budget and Planning, University of
Alaska; Rynnieva Moss, Staff, Representative John Coghill;
Clark Bishop, Commissioner, Department of Labor and
Workforce Development; Marcia Pickering, Deputy Compact
Administrator, Social Services Program Coordinator, Office
of Children's Services (OCS), Department of Health and
Social Services; Representative Harry Crawford; Jerry
Burnett, Director, Division of Administrative Services,
Department of Revenue; Representative Bryce Edgmon; Eddy
Jeans, Director, Education Support Services, Department of
Education and Early Development; Representative David
Guttenburg; Darwin Peterson, Staff, Senator Bert Stedman;
Karen Lister, Staff, Representative John Coghill; Miles
Baker, Staff, Senator Bert Stedman; Marie Darlin, AARP,
Capital City Task Force; Clyde (Ed) Sniffen, Jr., Assistant
Attorney General, Department of Law;
PRESENT VIA TELECONFERENCE
Maurice Bailey, President, Vietnam Veterans of America,
MatSu
SUMMARY
SB 160 "An Act establishing an Alaska health care program
to ensure insurance coverage for essential health
services for all residents of the state;
establishing the Alaska Health Care Board to
define essential health care services, to certify
health care plans that provide essential health
care services, and to administer the Alaska health
care program and the Alaska health care fund;
establishing the Alaska health care clearinghouse
to administer the Alaska health care program under
the direction of the Alaska Health Care Board;
establishing eligibility standards and premium
assistance for persons with low income;
establishing standards for accountable health care
plans; creating the Alaska health care fund;
providing for review of actions and reporting
requirements related to the health care program;
and providing for an effective date."
SB 160 was heard and HELD in Committee for further
consideration.
CSHB 65(FIN)
"An Act relating to breaches of security involving
personal information, credit report and credit
score security freezes, protection of social
security numbers, care of records, disposal of
records, identity theft, credit cards, and debit
cards, and to the jurisdiction of the office of
administrative hearings; amending Rules 60 and 82,
Alaska Rules of Civil Procedure; and providing for
an effective date."
SCS CSHB 65(FIN) was REPORTED from Committee with
"no recommendation" and with indeterminate fiscal
note #3 by the Office of the Governor and fiscal
note #5 by the Department of Administration.
HB 366 am
"An Act relating to an exemption from public
disclosure of certain appropriations from the
dividend fund; relating to execution upon
permanent fund dividends by civilian process
servers using electronic procedures; amending Rule
89, Alaska Rules of Civil Procedure; and providing
for an effective date."
HB 366 am was REPORTED from Committee with "no
recommendation" and with a new indeterminate
fiscal note from the Department of Corrections and
a previously published zero fiscal note from the
Department of Revenue.
HB 2 "An Act relating to the vocational education
account and appropriations from that account; and
providing for an effective date."
SCS HB 2(FIN) was REPORTED out of Committee with a
"do pass" recommendation and with a previously
published zero fiscal note by the Department of
Administration, and with new forthcoming fiscal
notes by the Department of Labor and Workforce
Development, the Department of Education and Early
Development, and the University.
CSHB 226(FIN)
"An Act extending the termination of the state
training and employment program; requiring a
review of the program; and providing for an
effective date."
SCS CSHB 226(FIN) was REPORTED from Committee with
a "no recommendation" and with two new fiscal
notes by the Department of Labor and Workforce
Development.
CSHB 50(JUD)
"An Act relating to the Interstate Compact for the
Placement of Children; establishing an interstate
commission for the placement of children; amending
Rules 4 and 24(b), Alaska Rules of Civil
Procedure; and providing for an effective date."
CSHB 50(FUD) was REPORTED from Committee with "no
recommendation" and with previously published zero
fiscal note #1 by the Department of Administration
and fiscal note #2 by the Department of Health and
Social Services.
CSHB 332(FIN)(title am)
"An Act defining an elementary school to include
certain pre-elementary programs and relating to
counting pre-elementary students in a school's
average daily membership."
CSHB 332(FIN)(title am) was REPORTED out of
Committee with a "do pass" recommendation and with
zero fiscal note #1 by the Department of Education
and Early Development.
CSHB 314(FIN) am
"An Act providing for and relating to the issuance
of general obligation bonds for the purpose of
paying the cost of state transportation projects;
and providing for an effective date."
SCS CSHB 314 (FIN) was REPORTED from Committee
with a "do pass" recommendation and fiscal note #1
by the Office of the Governor and fiscal note #2
by the Department of Revenue.
CSHB 44(FIN)
"An Act relating to information from veterans on
the permanent fund dividend application form."
CSHB 44(FIN) was heard and HELD in Committee for
further consideration.
SENATE BILL NO. 160
"An Act establishing an Alaska health care program to
ensure insurance coverage for essential health services
for all residents of the state; establishing the Alaska
Health Care Board to define essential health care
services, to certify health care plans that provide
essential health care services, and to administer the
Alaska health care program and the Alaska health care
fund; establishing the Alaska health care clearinghouse
to administer the Alaska health care program under the
direction of the Alaska Health Care Board; establishing
eligibility standards and premium assistance for
persons with low income; establishing standards for
accountable health care plans; creating the Alaska
health care fund; providing for review of actions and
reporting requirements related to the health care
program; and providing for an effective date."
SENATOR HOLLIS FRENCH, Sponsor, introduced SB 160. He
stated that Starbucks pays more for health insurance than
they pay for coffee. General Motors pays more for health
insurance than it does for steel. The reason the bill is
before the Committee is because Corporate American has
decided that there needs to be something done to reduce the
cost of health insurance before it drives businesses out of
business.
Senator French explained that the genesis of the bill began
when Mitt Romney became governor of Massachusetts and faced
the loss of millions of dollars in "dish funds", funds that
the federal government pays to cover hospitals for the costs
of the uninsured. Governor Romney formulated a new,
consumer-driven approach to address health insurance.
Senator French termed SB 160 a consumer-driven bill that
allows individuals to make choices about their health
insurance. It is that market force that will help keep
health insurance costs down.
Senator French reported that there are 100,000 Alaskans
without health insurance. Over 50 percent have jobs. This
bill would use federal, state, and employer money to make
the cost of health insurance affordable.
Senator French drew attention to the controversial aspects
of the bill. The first is "individual mandate". There is a
call in the bill for every single citizen to acquire health
insurance. This is necessary to spread out the risk, which
will lead to lower costs. The upside is "guaranteed issue":
everyone who applies is guaranteed coverage in the form of a
voucher.
9:29:19 AM
Senator French dispelled the myths about the bill. It does
not require those currently insured to change policies. It
should bring policy costs down by up to 15 percent, which is
about equal to the amount those who are insured have to pay
for those who are not insured. He gave an example of the
uninsured receiving care at emergency rooms resulting in a
loss of revenue to hospitals. It was estimated that in 2007
Providence Hospital spent $90 million on the uninsured.
Senator French reported on what the bill would not do:
create more doctors in Alaska or deal with Medicare
reimbursement rates. He opined that eventually there would
be a solution to the problem of the uninsured. He requested
the Committee take a hard look at the bill, which he termed
a work in progress. He stressed the importance of policy
decisions that will be made by the Senate Finance Committee.
9:32:37 AM
Senator French referred to a chart entitled "Alaska Health
Care: The Framework For Change" (copy on file.) There is an
Alaska Health Care Board, which certifies private health
care plans. There is a fund that holds vouchers, similar to
the federal plan, based on a sliding scale. He described
the various plans based on income level. Certified private
health insurance plans are made available for purchase using
vouchers.
9:34:41 AM
Senator French addressed the fiscal notes. The
Administration expects the plan to cost $333 million in FY
2010. Senator French thought that figure to be wildly
overstated. He pointed out on page 2 of fiscal note #1, it
says that "the estimated cost for insurance premiums is
$11,000 per person per year, based on the State of Alaska
employee insurance plan." He pointed out several errors in
that assumption. No one is paying $11,000 per person; that
amount will cover a family of four. The fiscal note
incorporates Indian Health Service recipients. The bill
does not mandate that those individuals join the plan.
Also, the fiscal note does not take into account that there
is an enormous amount of money being paid for uncompensated
care, which causes an increase in health insurance premiums
of about 15 percent.
9:37:13 AM
Senator Thomas asked if there is a minimum requirement of
services and if the Alaska Health Care Board would set up
the policies to be selected by the uninsured. Senator
French said those requirements are found on page 7 of the
bill in Section 231.54.250, essential health care services.
It does not set the level of the deductible or the
copayment.
Senator Olson asked if the program was all-inclusive.
Senator French said it was comprehensive, just like a
regular health insurance policy. Senator Olson asked if
Providence Hospital was in favor of the bill. Senator
French said they were and he referred to a letter of
support. He further explained that hospitals like the idea
of health insurance for all. Insurance companies are also
in favor of such a plan.
9:40:03 AM
Senator Huggins requested information about Massachusetts'
universal health care plan. Senator French explained that
over a year ago, Massachusetts instituted universal health
insurance using the mechanism of the state income tax to
require insurance. They started with a base of 600,000
uninsured and lowered that number by one third. They are
spending about $900 million a year. He said a comparable
cost to Alaska for a similar program would be about $150
million. Other states are considering similar plans.
Senator French mentioned a difficulty with that plan. Now
it is more difficult to see a primary care physician.
Senator Huggins referred to Canada's plan and the difficulty
of getting into see a doctor.
SB 160 was heard and HELD in Committee for further
consideration.
AT-EASE: 9:42:43 AM
RECONVENED: 9:46:53 AM
HOUSE BILL NO. 2
"An Act relating to the vocational education account
and appropriations from that account; and providing for
an effective date."
Senator Olson MOVED to ADOPT SCS HB 2(FIN), labeled 25-
LS006\K, Mischel, 4/10/08, as the work draft before the
Committee.
Co-Chair Stedman OBJECTED for discussion purposes.
DAVID GRAY, STAFF, SENATOR DONNY OLSON, explained that SCS
HB 2(FIN) combines two bills, the original HB 2, which is
Section 3 of the bill, and SB 124, which made distributions
of funds for various vocational technical training programs
throughout the state. SB 124 unanimously passed the Senate
and had 15 co-sponsors. The SCS is an attempt to try to
enact the essential parts of SB 124.
Mr. Gray explained that Section 1 increases the percentage
of the contribution to technical training education funds.
Section 2 puts the allocations in affect for a 5-year time
period. Page 2 of the bill lists the various allocations.
The University of Alaska allocation has been increased. Mr.
Gray noted an error in the Galena Project allocation. He
said that it should be 4 percent, not 3 percent. He listed
the allocations for the various categories in HB 2, as
compared to what they used to be in SB 124. Missing from
124 is an allocation of 15.5 percent to the Alaska Works
Partnership.
9:52:07 AM
Mr. Gray addressed a new feature in subsections (e) and (f)
- an expenditure and performance report to the department
and to the legislature.
Mr. Gray reported that Section 4 is a repeal of uncodified
law.
9:53:06 AM
Co-Chair Stedman MOVED to ADOPT a Conceptual Amendment:
On page 2, line 7, change 3 percent to 4 percent.
There being NO OBJECTION, it was so ordered.
Co-Chair Stedman mentioned the zero fiscal note from the
Department of Administration.
9:53:58 AM
GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, said there would be a third fiscal note once
the bill is adopted by the Committee. One from the
University of Alaska, one from the Department of Education
and Early Development, and one from the Department of Labor
and Workforce Development.
9:55:26 AM
REPRESENTATIVE MARK NEUMAN, Sponsor, explained that HB 2
started out as a proposal to create a vocational education
account within the general fund. It was a way to allow
private industry to help vocational education. It does
require the Department of Education and Early Development
and the Department of Labor and Workforce Development to
target programs that need vocational education funds. He
spoke in favor of the changes in the new SCS.
9:56:33 AM
Senator Huggins asked about the UAA allocation of 45 percent
on page 2 of the bill. He wondered which programs it
funded. He Representative Neuman did not know. It was an
amendment with the addition of SB 124.
PAT PITNEY, VICE PRESIDENT, BUDGET AND PLANNING, UNIVERSITY
OF ALASKA, addressed the distribution of the funding which
goes to all campuses.
Senator Huggins asked about MatSu's allotment. Ms. Pitney
reported that it varies from year to year. The funds are
primarily for workforce startup or equipment. She offered
to provide more information.
9:59:57 AM
Representative Neuman commented that there needs to be more
money funded for vocational education. He spoke in favor of
jobs for Alaskans. He strongly advocated for the passage of
HB 2.
Co-Chair Hoffman MOVED to REPORT SCS HB 2(FIN), as amended,
out of Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS HB 2(FIN) was REPORTED out of Committee with a "do pass"
recommendation and with a previously published zero fiscal
note by the Department of Administration, and with new
forthcoming fiscal notes by the Department of Labor and
Workforce Development, the Department of Education and Early
Development, and the University.
10:02:31 AM
CS FOR HOUSE BILL NO. 226(FIN)
"An Act extending the termination of the state training
and employment program; requiring a review of the
program; and providing for an effective date."
Co-Chair Hoffman MOVED to ADOPT SCS CSHB 226(FIN), labeled
25-LS0778\L, Wayne, 4/9/08, as the work draft before the
Committee. Co-Chair Stedman OBJECTED.
Co-Chair Stedman commented that version L reduces the sunset
date to 2010 and requires the department to post its report
on the Alaska Online Public Notice System.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
10:04:08 AM
RYNNIEVA MOSS, STAFF, REPRESENTATIVE JOHN COGHILL, explained
that job training and employment are very important. The
sponsor feels that this program is the best way to get that
accomplished. The current commissioner has inherited a
program that needs improvements and has appointed a task
force to address some of the problems that face the State
Training and Employment Program (STEP). She voiced
appreciation for the extension of the program through 2010.
Co-Chair Stedman noted two fiscal notes from the Department
of Labor and Workforce Development. The one from business
services is for $5,678,100 - the amount of the FY 09
operating budget for the program. The other is from
unemployment insurance for $356,900 - STEP's share of
unemployment insurance tax collection cost required by
federal law.
10:05:31 AM
CLARK BISHOP, COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, thanked everyone for their work on
the bill.
Senator Thomas asked who requested the sunset date extension
of two years. Mr. Bishop replied that the bill came out of
the Senate Labor and Commerce Committee with a date of 2018.
The department requested and would prefer 10 years for
continuity reasons. Senator Thomas asked if there was a
recommendation by the auditors. Mr. Bishop said he didn't
think so.
Co-Chair Hoffman MOVED to REPORT SCS CSHB 226(FIN) out of
Committee with individual recommendations and accompanying
fiscal notes. There being NO OBJECTION, it was so ordered.
SCS CSHB 226(FIN) was REPORTED out of Committee with "no
recommendation" and with two new fiscal notes by the
Department of Labor and Workforce Development.
AT-EASE: 10:09:13 AM
RECONVENED: 10:13:31 AM
Co-Chair Stedman MOVED to RESCIND the action to move SCS
CSHB 226(FIN) from Committee. There being NO OBJECTION, it
was so ordered.
Co-Chair Stedman noted that more work was needed on the
bill.
AT-EASE: 10:15:06 AM
RECONVENED: 10:15:34 AM
CS FOR HOUSE BILL NO. 50(JUD)
"An Act relating to the Interstate Compact for the
Placement of Children; establishing an interstate
commission for the placement of children; amending
Rules 4 and 24(b), Alaska Rules of Civil Procedure; and
providing for an effective date."
RYNNIEVA MOSS, STAFF, REPRESENTATIVE JOHN COGHILL, explained
that the Interstate Compact for the Placement of Children
has several problems. States have been joining forces to
compose a new compact that has accountability and allows the
states to agree on regulations of conformity that will
result in children being placed in foster care a shorter
length of time before being placed with relatives and
friends in other states. She shared Representative
Coghill's story behind deciding to come forth with the
legislation in order to help children.
Ms. Moss reported that under this legislation, work studies
would be completed in sixty days, rather than three months
to a year, as happens now.
10:18:23 AM
MARCIA PICKERING, DEPUTY COMPACT ADMINISTRATOR, SOCIAL
SERVICES PROGRAM COORDINATOR, OFFICE OF CHILDREN'S SERVICES
(OCS), DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained
the requirements of the new Compact, which are intended to
return uniformity to the process, establish accountability,
and ensure safe and timely placements of children in foster
care to homes in other states. The Compact should shorten
the time spent in foster care to two months because there
will be an opportunity to request an assessment vs. a full-
blown home study. The assessment will allow for provisional
approval from another state more quickly.
Ms. Pickering explained that the provisions in the new
Compact will help address the frustrations the state,
judges, and others have had. It will provide for
administrative rule-making and enforcement. In the past
there has not been any accountability in enforcement. It
will also provide for supervision services for children
already placed. It will provide for uniform data collection
and information sharing and require oversight by an in-state
advisory committee made up of administration, judiciary, and
legislative participants.
10:20:31 AM
Co-Chair Hoffman asked how the bill relates to the Indian
Child Welfare Act. Ms. Pickering shared her understanding
of the purpose of the placement responsibilities of the Act.
The Compact will help facilitate the placements recommended
by the Act. Co-Chair Hoffman asked if it conflicted with
the Indian Child Welfare Act's intention to place children
with a native family. Ms. Pickering said it did not.
10:22:09 AM
Senator Elton referred to page 27, Section 6, where the
Governor is replaced with the Commissioner of the Department
of Health and Social Services. He questioned the
constitutionality of that change. Ms. Moss said that the
Department of Law was involved in drafting the language.
She related the history of analyzing the language in the old
Compact. The Governor's office, Attorney General's office,
as well as private attorneys, have been involved in drafting
this legislation.
Senator Elton wondered if "the Governor may delegate" would
be better. Ms. Moss referred to statutes that transfer
authority to the commissioner to be on the commission and to
be involved in promulgating regulations for states to use as
guidelines for placement of children. She predicted it
would be labor intensive for the first several years. It
would be consistent with other laws.
Senator Elton assumed it would not restrict an acting
commissioner. Ms. Moss thought an acting commissioner was
considered to be the commissioner. Senator Elton requested
the bill be set aside to answer that question.
10:25:51 AM
Senator Thomas stated support for the bill. He asked how
many children the bill would affect. Ms. Pickering said
there were about 150 children placed outside the state.
About 38 of those are in relative foster care, about 50 are
in residential programs, and the rest are with parents,
relatives, and adoption placement.
CSHB 50 (JUD) was heard and HELD in Committee for further
consideration.
AT-EASE: 10:28:01 AM
RECONVENED: 10:32:30 AM
HOUSE BILL NO. 366 am
"An Act relating to an exemption from public disclosure
of certain appropriations from the dividend fund;
relating to execution upon permanent fund dividends by
civilian process servers using electronic procedures;
amending Rule 89, Alaska Rules of Civil Procedure; and
providing for an effective date."
REPRESENTATIVE HARRY CRAWFORD, Sponsor, explained that a
number of years ago the law was changed so that incarcerated
felons and multiple misdemeanants could not collect a
Permanent Fund Dividend. Unfortunately, it prevented their
children who were owed child support from receiving it.
This bill ensures that those children will not lose out on
their child support. Most children of incarcerated parents
have a child support order that is $50 per month. The
majority of the time the parents' only assets are the PFD's.
The bill also provides for electronic delivery of writs by
the Department of Revenue.
10:35:58 AM
Co-Chair Stedman asked if the bill would direct the PFD of a
parent that is incarcerated to the child. Representative
Crawford explained that it would require the Department of
Revenue to estimate the amount of the child's PFD and allow
the child to receive child support payments. The bill is
subject to appropriation by the legislature.
Senator Thomas wondered about the order of dispersal of the
PFD for incarceration costs to the Department of Correction
and the Department of Public Safety. He wondered how much
would be left over for child support payments.
Representative Crawford replied that the bill simply puts
the children back on the list to be able to receive
payments. It does not make an appropriation.
Representative Crawford reported that this year it was
estimated that there would be about $16 million for
incarceration costs. He said there were about 5,000
children, of which about 2,000 would be eligible. He
thought that there would be money left over.
10:39:07 AM
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, reported on currently
calculated PFD felon funds. There were about 10,188 people
who did not qualify for their dividend as a result of
incarceration, which represented about $16,800 in the FY 09
budget.
AT-EASE: 10:39:57 AM
RECONVENED: 10:40:47 AM
Mr. Burnett continued to explain that currently the money is
all appropriated to the Department of Corrections and to the
Department of Public Safety's Council on Domestic Violence
and Sexual Assault. With the passage of the bill, PFD felon
funds would potentially be available for grants to children
of incarcerated parents.
Mr. Burnett reported that next year when the FY 2010 budget
is compiled, the Department of Revenue would estimate how
many children are not in foster care or are wards of the
state and whose parents would have received a PFD absent
their incarceration, and bring a budget request for that
amount. He guessed that next year's felon funds would be
about $21 million to $22 million. He said that half of the
felons who are incarcerated have child support orders. It
is estimated that next year less than 2,000 children would
be eligible for the support, which would require about $4
million to replace garnished dividends.
Co-Chair Stedman said the fiscal notes show zero. Mr.
Burnett said they were zero because the effect of the bill
only allows the appropriations from the PFD felon fund to be
made. The fiscal notes do not show appropriations.
10:43:52 AM
Senator Thomas asked if the legislature would appropriate
money for purposes of child support. He wondered how much
would be available after the other appropriations are made.
Mr. Burnett explained that the monies can be spent for
anything on the list without disclosure on the PFD as a
reduction to peoples' dividends. The bill allows for a
specific appropriation request for a child support grant
program. He related that the appropriation request could be
made in several ways. He gave an example of how it could be
done.
10:45:47 AM
Mr. Crawford explained that the bill allows child support
payments to be back on the list. No one expected to pay for
items in the felon's fund to come off of the backs of
children. It was an unintended consequence.
Senator Olson asked if the incarcerated person has access to
the money. Representative Crawford said they did not.
Senator Thomas said he was supportive of the bill.
Representative Crawford explained that child support orders
are number one in line for garnished wages in all other
instances.
Co-Chair Stedman noted that the fiscal notes need to be
cleared up.
HB 366 was heard and HELD in Committee for further
consideration.
10:49:06 AM
CS FOR HOUSE BILL NO. 332(FIN)(title am)
"An Act defining an elementary school to include
certain pre-elementary programs and relating to
counting pre-elementary students in a school's average
daily membership."
REPRESENTATIVE BRYCE EDGMON, Sponsor, explained that the
bill would allow pre-elementary school programs such as Head
Start to be eligible for federal E-Rates, a subsidy that
flows from the Universal Service Administrative Company
(USAC) funds. It would not impact the average daily
membership. It would transfer about $14 million to $20
million a year in federal funds to Alaska. It would allow
Head Start to receive federal funds unencumbered by state
matching funds. He gave the Bristol Bay Native Head Start
program as an example.
Senator Olson asked where the $15 - $20 million goes now.
Representative Edgmon said it goes to K-12 facilities which
must qualify to receive the funds. Senator Olson asked if
the department is in favor of the bill. Representative
Edgmon said they were.
10:52:38 AM
EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT, testified in support of
the bill. He noted previous efforts to get this approach
reauthorized in legislation.
10:53:17 AM
Senator Huggins asked if there was a preference for pre-
elementary programs over elementary programs regarding this
federal funding. Mr. Jeans explained that there was no
competition because it is a national program. Senator
Huggins asked if the pre-school program has to be on-site at
an elementary school. Mr. Jeans did not think so. Senator
Huggins asked for a definition of a recognized pre-
elementary program. Mr. Jeans did not know.
Senator Thomas clarified that the bill does not change what
exists today regarding student count numbers. Mr. Jeans
agreed.
10:55:27 AM
Senator Elton MOVED to REPORT CSHB 332(FIN)(title am) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 332(FIN)(title am) was REPORTED out of Committee with a
"do pass" recommendation and with zero fiscal note #1 by
Department of Education and Early Development.
AT-EASE: 10:55:58 AM
RECONVENED: 3:43:37 PM
HOUSE BILL NO. 366 am
"An Act relating to an exemption from public disclosure
of certain appropriations from the dividend fund;
relating to execution upon permanent fund dividends by
civilian process servers using electronic procedures;
amending Rule 89, Alaska Rules of Civil Procedure; and
providing for an effective date."
Co-Chair Stedman referred to the revised Department of
Corrections fiscal note which has been changed from a zero
note to an indeterminate note. He referred to the second
paragraph on the fiscal note which states, "In FY 2009
approximately $9.1 million of the $31 million Inmate Health
Care budget is PFD Criminal Funds. If in the future the
legislature chooses to reduce the current level of PFD
Criminal Funds appropriated to the Department of
Corrections, a General Fund appropriation equal to the
reduction would be requested to maintain inmate health care
services." It would be up to the legislature to decide what
would be appropriated annually.
3:45:31 PM
Representative Crawford estimated the amount of felon funds
for the coming year to be $21 to $22 million. The amount
for inmate care will increase, but there should be more than
enough funds to handle the child support request. That
amount can't be known until the number of children are
accounted for. He maintained that it could be about $4
million and there should be enough available.
3:46:38 PM
Senator Elton MOVED to REPORT HB 366 am from Committee with
individual recommendations and accompanying fiscal notes.
There being NO OBJECTION, it was so ordered.
HB 366 am was REPORTED from Committee with "no
recommendation" and with a new indeterminate fiscal note
from the Department of Corrections and a previously
published zero fiscal note from the Department of Revenue.
3:47:35 PM
CS FOR HOUSE BILL NO. 50(JUD)
"An Act relating to the Interstate Compact for the
Placement of Children; establishing an interstate
commission for the placement of children; amending
Rules 4 and 24(b), Alaska Rules of Civil Procedure; and
providing for an effective date."
Co-Chair Stedman remarked that the bill was held because of
Senator Elton's concerns. He referred to a legal memo that
addresses those concerns (copy on file.)
Senator Elton agreed that his questions were answered.
Senator Thomas MOVED to REPORT CSHB 50(JUD) from Committee
with individual recommendations and accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
CSHB 50(JUD) was REPORTED from Committee with "no
recommendation" and with previously published zero fiscal
note #1 by the Department of Administration and fiscal note
#2 by the Department of Health and Social Services.
AT EASE: 3:48:49 PM
RECONVENED: 3:55:58 PM
CS FOR HOUSE BILL NO. 226(FIN)
"An Act extending the termination of the state training
and employment program; requiring a review of the
program; and providing for an effective date."
Co-Chair Stedman reported that this was the second hearing
on HB 226. There was a need to clear up some issues.
Senator Elton MOVED to REPORT SCS CSHB 226(FIN) from
Committee with individual recommendations and the
accompanying fiscal note.
AT EASE: 3:56:32 PM
RECONVENED: 3:56:46 PM
There being NO OBJECTION, it was so ordered.
SCS CSHB 226(FIN) was REPORTED from Committee with "no
recommendation" and with two new fiscal notes by the
Department of Labor and Workforce Development.
AT EASE: 3:57:07 PM
RECONVENED: 4:29:37 PM
CS FOR HOUSE BILL NO. 44(FIN)
"An Act relating to information from veterans on the
permanent fund dividend application form."
4:30:08 PM
REPRESENTATIVE DAVID GUTTENBURG, Sponsor, presented an
overview of bill. This bill would instruct the Permanent
Fund to put a question on the dividend application to find
out if the applicant is a veteran. This list of veterans
would go to the Department of Military and Veterans Affairs
and to a service organization for outreach for the purpose
of informing veterans about earned benefits. This
information could not be used for anything political.
Representative Guttenberg explained that about $2 billion a
year in benefits is provided for veterans, but only 20
percent actually receive benefits. The bill would allow
service groups to reach out and notify veterans of eligible
benefits.
4:32:13 PM
Senator Thomas inquired if there would be an explanation on
the form. Representative Guttenberg said there would be
information included on the form saying that disclosure is
voluntary and an opportunity to sign up for benefits.
4:33:17 PM
Senator Huggins asked what Military and Veterans Affairs
would do with the information. Representative Guttenberg
replied that congressionally chartered veterans
organizations would send mailings out to veterans.
Senator Huggins stated that DMVA presently gets 214's. He
asked what they can do with those. Representative
Guttenberg said that the reason the PFD is the vehicle is
because it has the most current address. He did not know
about the 214's.
4:34:26 PM
Senator Elton, speaking as a vet, said he did not want junk
mail or lots of unwanted mail. He wondered if there were
restrictions to prevent the organizations from selling the
list. Representative Guttenberg said that was a topic of
discussion in the House. The department and the
organizations have confidentiality rules in place. It would
be a violation of the law to sell the lists.
Senator Elton concluded that there are provisions that would
prevent the organizations from selling the list.
Representative Guttenberg said that was his understanding
also.
4:36:05 PM
MAURICE BAILEY, PRESIDENT, VIETNAM VETERANS OF AMERICA,
MATSU, testified in support of the bill. He spoke of
organizing an Aviation Outreach Program to find veterans in
Alaska in order to get health care and other benefit
information to them. The program also supplies American
flags to villages for burial services. Most of the veterans
do not know how to get the forms they need because they are
not tracked after active duty. He shared a personal story.
4:40:49 PM
Senator Huggins commented on military organizations such as
Veteran Service Officers who provide information to
veterans. He said he was proud of these organizations for
reaching out to veterans.
Representative Guttenberg agreed with Senator Huggins. He
pointed out that a lot of people get lost in the system. He
shared a personal story about his father who was a veteran.
4:43:05 PM
Senator Elton spoke of his experience with the G.I. Bill
paying for his schooling. He liked the idea that it would
be voluntary to use the Permanent Fund to find out about
benefits. He said he would not like it if it was required.
4:44:08 PM
CSHB 44(FIN) was heard and HELD in Committee for further
consideration.
AT EASE: 4:44:21 PM
RECONVENED: 4:46:09 PM
CS FOR HOUSE BILL NO. 65(FIN)
"An Act relating to breaches of security involving
personal information, credit report and credit score
security freezes, protection of social security
numbers, care of records, disposal of records, identity
theft, credit cards, and debit cards, and to the
jurisdiction of the office of administrative hearings;
amending Rules 60 and 82, Alaska Rules of Civil
Procedure; and providing for an effective date."
Senator Olson MOVED to ADOPT SCS HB 65(FIN), labeled 25-
LS0311\F, Bannister, 4/10/08, as the working document.
There being NO OBJECTION, it was so ordered.
4:47:27 PM
DARWIN PETERSON, STAFF, SENATOR BERT STEDMAN, reviewed the
changes to the new SCS. On page 2, line 19, the word "and"
was changed to "or". On page 3, line 25, the words "to
state residents" were added for clarification. On page 5,
line 31, language was deleted that was added as an amendment
in the previous committee that referred to radio frequency
devices. Page 8, line 28, through page 9, line 18, is the
section of the bill that describes the exceptions for the
fifteen minute time limit on removing a security freeze.
Mr. Peterson continued to explain that on page 11, lines 21-
24, changes were made to the amount that a consumer credit
reporting agency may charge a consumer for lifting a freeze.
Previous language stated that if a consumer makes more than
two requests, then the company may charge $2. That language
was problematic. On page 13, lines 17-18, language was
inserted to conform to the previous exceptions for the
fifteen minute time limit. On page 16, line 8-9, the
language was added referring to AS 21.36.460 and AS
21.39.035.
Mr. Peterson turned to page 19, lines 1-4, a new subsection
that refers to exceptions for accessing a person's social
security number, and lines 8-12, which defines "insurer".
On page 28, line 7, the words "or expiration date" were
added after "credit card number". On page 29, lines 8-14,
a new definition for credit report, cross referencing
federal code, was inserted. On page 30, line 22, the
effective date was changed from January 1, 2009, to July 1,
2009, to conform with the start of the next fiscal year.
4:51:41 PM
Senator Elton referred to the change made on page 11, line
21, about the charge to consumers. He asked how many
agencies a consumer would need to contact to establish a
freeze. Darwin Peterson deferred to Karen Lister.
KAREN LISTER, STAFF, REPRESENTATIVE JOHN COGHILL, reported
that it would be three credit reporting agencies.
Senator Elton assumed that the cost would be $15, not $5.
Ms. Lister agreed.
4:53:08 PM
Ms. Lister presented an overview of the bill and listed the
7 articles that deal with all areas of personal information
and the rights and protections the consumer has and can
expect from individuals that handle their personal
information:
Breach of Security Involving Personal Information
Credit Report and Credit Score Security Freeze
Protection of Social Security Number
Disposal of Records
Factual Declaration of Innocence after Identity Theft;
Right to File Police Report Regarding Identity Theft
Truncation of Card Information
General Provisions
4:58:03 PM
Senator Thomas inquired who currently has access to personal
information. Ms. Lister replied that the Fair Credit
Reporting Act provides guidelines that control access and
disclosure of that information. Those guidelines are
referenced many times in the bill. Credit reporting
agencies are subject to those requirements.
5:00:02 PM
Senator Olson asked, if the bill passes, if doctors will
still be able to use Social Security numbers for reporting
purposes. Ms. Lister said they would. She referenced that
information in the bill.
Senator Olson found that information on page 20, lines 29-
31.
5:00:42 PM
Senator Huggins asked how long of a delay there would be
before the person is informed if their security file is
lost. Ms. Lister deferred to the Attorney General's Office
to report on the "allowable delay" term.
Co-Chair Stedman noted that an amendment was forthcoming.
AT EASE: 5:02:07 PM
RECONVENED: 5:03:52 PM
Co-Chair Stedman MOVED to ADOPT Amendment #1:
Page 1, line 3, following "debit cards,":
Insert "disclosure of the names and addresses of
permanent fund dividend applicants,"
Page 2, following line 1:
Insert a new bill section to read:
"* Sec. 2. AS 43.23.017 is amended by adding a new
subsection to read:
(b) Notwithstanding (a) of this section, the
department may release the names and addresses of
permanent fund dividend applicants to a legislator of
this state and to the legislator's office staff."
Renumber the following bill sections accordingly.
Page 30, line 6:
Delete "sec. 3"
Insert "sec. 4"
Page 30, line 10:
Delete "sec. 3"
Insert "sec. 4"
Page 30, line 19:
Delete "sec. 3"
Insert "sec. 4"
Page 30, line 21:
Delete "Section 6"
Insert "Section 7"
Page 30, line 22:
Delete "secs. 7 and 8"
Insert "secs. 8 and 9"
Co-Chair Stedman OBJECTED.
5:04:13 PM
MILES BAKER, STAFF, SENATOR BERT STEDMAN, presented an
overview of the amendment. The amendment would insert an
addition to AS 43.23.017, which is the section in statute
regarding who has access to the names and addresses of
Permanent Fund Dividend applicants. Prior to 2004,
legislative offices had access to that data. In 2004
legislation was passed which had the unintended effect of
eliminating legislative access. Currently, local, state,
and federal government agencies can access the PFD list, but
legislative offices cannot. The amendment would allow
legislators and their staff would have access to the list.
Co-Chair Stedman WITHDREW his OBJECTION.
Senator Elton OBJECTED. He inquired if there were any
restrictions on legislative use of that information.
5:07:17 PM
Mr. Baker related that the department could not release
confidential information and he assumed that legislative
offices would do the same. The issue was not specifically
addressed in the amendment.
Senator Elton said he was comfortable with having access for
official purposes. He thought it should be restricted to
only official purposes.
Mr. Baker reported that he had discussed this with Legal
Services and the original suggestion included the wording
"legislative offices for official business". That was the
intent of the amendment, but in discussions with Legal
Services it was decided that Amendment 1 contained the best
description. He related the history of the discussion of
the wording.
5:10:59 PM
Senator Elton MOVED to ADOPT a conceptual amendment: on line
10, before the period, add the words "for official use."
Co-Chair Stedman agreed with that friendly amendment.
Senator Elton WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment #1 was adopted, as amended.
Co-Chair Stedman MOVED to ADOPT a conceptual amendment, on
page 4, line 1, insert "credit" after "consumer". This was
recommendation by Legal Services.
There being NO OBJECTION, it was so ordered.
5:13:27 PM
MARIE DARLIN, AARP, CAPITAL CITY TASK FORCE, testified in
support of the bill. She related that the subject of this
bill has been a concern of AARP's for a long time. It has
been thoroughly reviewed and discussed since last year.
AARP believes that HB 65 will be one of the most
comprehensive identity theft bills in the U.S. She referred
to a letter of support by AARP (copy on file.) She asked
for the Committee's support of the bill.
5:16:26 PM
Co-Chair Stedman referred to a letter from legal services
dealing with interstate commence. He inquired if the bill
creates a problem with interstate commerce.
Ms. Lister replied that she does not see a problem, but
would like to have a legal explanation.
CLYDE (ED) SNIFFEN, JR., ASSISTANT ATTORNEY GENERAL,
DEPARTMENT OF LAW, reported that this kind of legislation
has been passed in 42 states and is not a concern.
5:18:24 PM
Co-Chair Hoffman MOVED to REPORT SCS CSHB 65(FIN) from
Committee with individual recommendations and accompanying
fiscal notes.
Co-Chair Stedman OBJECTED. He reviewed the two fiscal
notes.
Co-Chair Stedman WITHDREW his OBJECTION.
SCS CSHB 65(FIN) was REPORTED from Committee with "no
recommendation" and with indeterminate fiscal note #3 by the
Office of the Governor and fiscal note #5 by the Department
of Administration.
AT EASE: 5:19:32 PM
RECONVENED: 5:27:44 PM
CS FOR HOUSE BILL NO. 314(FIN) am
"An Act providing for and relating to the issuance of
general obligation bonds for the purpose of paying the
cost of state transportation projects; and providing
for an effective date."
Co-Chair Hoffman MOVED to ADOPT SCS CSHB 314(FIN), labeled
25-GH2041\O, Cook, 4/11/08, as the working document before
the Committee. There being NO OBJECTION, work draft 25-
GH2041\O was adopted.
5:28:41 PM
MILES BAKER, STAFF, SENATOR BERT STEDMAN, went over the
changes in the new Senate Committee Substitute. On page 2,
line 14, the Sawmill project was moved over from the capital
budget. The next five projects are Senate additions. Page
3, lines 1-19, are all House projects. On line 13 there was
a name change to Craig-Klawock Highway. On line 16,
"Gateway Borough" was removed for clarification. On line
18, "Matanuska Susitna Borough" was removed. Page 4, lines
1-8, are Senate additions. The total bond bill in the House
was $220.6 million, of which $6.6 million was deleted for
two projects. The Senate added $101,050,000 for a total of
$315,050,000.
5:32:18 PM
Co-Chair Hoffman MOVED to REPORT SCS CSHB 314 (FIN) from
Committee with individual recommendations and accompanying
fiscal notes. There being NO OBJECTION, it was so ordered.
SCS CSHB 314 (FIN) was REPORTED from Committee with a "do
pass" recommendation and fiscal note #1 by the Office of the
Governor and fiscal note #2 by the Department of Revenue.
AT EASE: 5:32:59 PM
RECONVENED: 5:57:59 PM
ADJOURNMENT
The meeting was adjourned at 5:57 PM.
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