Legislature(2009 - 2010)SENATE FINANCE 532
03/22/2010 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB144 | |
| SB215 | |
| SB238 | |
| SB246 | |
| SB257 | |
| SB219 | |
| SB237 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 144 | TELECONFERENCED | |
| += | SB 215 | TELECONFERENCED | |
| += | SB 219 | TELECONFERENCED | |
| += | SB 238 | TELECONFERENCED | |
| += | SB 246 | TELECONFERENCED | |
| += | SB 257 | TELECONFERENCED | |
| + | SB 237 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 22, 2010
9:05 a.m.
9:05:23 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:05 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Dennis Egan
Senator Donny Olson
MEMBERS ABSENT
Senator Johnny Ellis
Senator Joe Thomas
ALSO PRESENT
Senator Bettye Davis; Doug Wooliver, Administrative
Attorney, Alaska Court System; Esther Cha, Staff, Senator
Lesil McGuire; Jay Livey, Staff, Co-Chair Hoffman; Senator
Kevin Meyer; Andrea Story, Juneau School Board; Eddy Jeans,
Director, School Finances and Facilities, Department of
Education and Early Development
PRESENT VIA TELECONFERENCE
None
SUMMARY
SB 144 MUSK OXEN PERMITS
CSSB 144 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with zero FN 1
DFG.
SB 215 PIONEERS HOME RX DRUG BENEFIT
SB 215 was REPORTED out of Committee with no
recommendation and with zero FN 1 DHS.
SB 219 TRAUMATIC BRAIN INJURY: PROGRAM/MEDICAID
SB 219 was heard and HELD in Committee for
further consideration.
SB 237 SCHOOL CONSTRUCTION DEBT REIMBURSEMENT
SB 237 was heard and HELD in Committee for
further consideration.
SB 238 MEDICAID FOR MEDICAL & INTERMEDIATE CARE
SB 238 was REPORTED out of Committee with no
recommendation and with zero FN 1 DHS.
SB 246 INCREASING NUMBER OF SUPERIOR CT JUDGES
SB 246 was REPORTED out of Committee with no
recommendation and with FN 1 CRT and zero FN 2
CRT.
SB 257 YOUTH COURTS AND CRIMINAL FINES
SB 257 was REPORTED out of Committee with a "do
pass" recommendation and with zero FN 1 CRT, zero
FN 2 DHS, and zero FN 3 LAW.
9:05:46 AM
SENATE BILL NO. 144
"An Act relating to hunting permits and tag fees for
musk oxen."
9:06:35 AM
Senator Hoffman MOVED to ADOPT the CS for SB 144, labeled
26-LS0666\E, Kane, 3/16/10. Co-Chair Stedman OBJECTED.
Co-Chair Stedman explained that the committee substitute
makes a conforming technical change by adding the word
"and" on page 1, line 15, and on page 2, line 8.
Co-Chair Stedman WITHDREW his objection. There being NO
OBJECTION, the CS was adopted.
Co-Chair Stedman noted a zero fiscal note from the
Department of Fish and Game.
Senator Olson, sponsor of the bill, summarizing that the
bill clears up the paperwork for hunters of Musk Oxen. The
new stocks of Musk Oxen are treated differently now that
they are transplanted. The bill was requested by the
Department of Fish and Game in Nome.
9:08:27 AM
Co-Chair Hoffman MOVED to report CSSB 144 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 144 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with zero FN 1 DFG.
9:09:18 AM
SENATE BILL NO. 215
"An Act requiring the Department of Health and Social
Services to accept federal prescription drug benefits
or to provide comparable benefits for residents of the
Alaska Pioneers' Home."
Co-Chair Stedman reported that this was the second hearing
on the bill. He asked if there were any questions. He noted
one zero fiscal note from the Department of Health and
Social Services.
Co-Chair Hoffman MOVED to report SB 215 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 215 was REPORTED out of Committee with no recommendation
and with zero FN 1 DHS.
9:10:40 AM
SENATE BILL NO. 238
"An Act amending the eligibility threshold for medical
assistance for persons in a medical or intermediate
care facility."
9:10:55 AM
SENATOR BETTYE DAVIS, sponsor of SB 238, thanked the
committee for considering the bill.
Co-Chair Hoffman MOVED to report SB 238 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 238 was REPORTED out of Committee with no recommendation
and with zero FN 1 DHS.
9:11:55 AM
SENATE BILL NO. 246
"An Act increasing the number of superior court judges
designated for the third judicial district; and
providing for an effective date."
9:12:08 AM
Co-Chair Stedman reported that the bill was requested by
the Court System and introduced by the Rules Committee. It
is the second hearing on the bill. The Court System
provided information in a letter dated March 16, detailing
the number of cases filed per district and how many judges
have been added in the last ten years (copy on file).
DOUG WOOLIVER, ADMINISTRATIVE ATTORNEY, ALASKA COURT
SYSTEM, explained that the Court System provided
information going back to 2000 listing all superior court
filings by district. The numbers vary by district. The
third district, where a judge is being requested, has seen
an increase in case filings. The request for the judge has
more to do with the additional work load rather than the
number of cases.
Co-Chair Stedman reviewed the two fiscal notes, one zero
note from the Judicial Council and one fiscal note from the
Court System for $499,100 in general funds for the new
judge and support staff.
Mr. Wooliver voiced appreciation for the committee's
consideration of the bill.
9:13:54 AM
Co-Chair Hoffman MOVED to report SB 246 out of Committee
with individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
SB 246 was REPORTED out of Committee with no recommendation
and with FN 1 CRT and zero FN 2 CRT.
9:14:32 AM
SENATE BILL NO. 257
"An Act relating to funding for youth courts; and
relating to accounting for criminal fines."
Co-Chair Stedman related that this was the second hearing
on the bill.
Senator Egan, sponsor, thanked the committee for listening
to the presentation on the bill and continuing to provide
funding for Alaska's Youth Courts.
Co-Chair Stedman noted three zero notes, one from the
Department of Law, one from the Department of Health and
Social Services, and one from the Court System.
Co-Chair Hoffman MOVED to report SB 257 out of Committee
with individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
SB 257 was REPORTED out of Committee with a "do pass"
recommendation and with zero FN 1 CRT, zero FN 2 DHS, and
zero FN 3 LAW.
9:16:20 AM
SENATE BILL NO. 219
"An Act establishing a traumatic brain injury program
and registry within the Department of Health and
Social Services; and relating to medical assistance
coverage for traumatic brain injury services."
9:16:27 AM
Co-Chair Stedman said that this was the second hearing on
the bill.
Co-Chair Hoffman MOVED to ADOPT the CS for SB 219, labeled
26-LS1312\S, Mischel, 3/2/10.
Co-Chair Stedman OBJECTED. He noted that, at the direction
of the sponsor, the definition of case management service
on page 2, line 3 has been amended. There is a document in
members' packets that summarizes that change.
ESTHER CHA, STAFF, SENATOR LESIL MCGUIRE, explained the
changes in the bill. On Section 3, page 2, the definition
of case management services for traumatic or acquired brain
injury was amended to "services furnished to individuals
who reside in a community setting or who are transitioning
to a community setting, to gain access to needed medical,
social, educational, and other available services."
Ms. Cha related that the subsections from AS 47.07.030 (A),
(B), (C), and (D) were deleted from Version E of the bill.
The change is shown on page 2, line 25, through page 3,
line 5. This change was based on testimony from the
Department of Health and Social Services. The original
definition was slightly amended in the Health and Social
Services Committee hearing; however, the department's
attorney general stated that the definition of case
management would still conflict with the federal
definition. The department was uncertain whether or not
Medicaid and Medicare Services would be affected,
jeopardizing the ability to get matching federal funds. The
definition change is verbatim from federal statutes and
should not complicate the process when the department
submits an amendment to the state's Medicaid plan.
Co-Chair Stedman WITHDREW his objection to the adoption of
the CS. There being NO OBJECTION, it was so ordered.
AT-EASE 9:19:18 AM
RECONVENED 9:22:05 AM
Senator Huggins MOVED to adopt Amendment 1:
Page 4, lines 6-7
Delete "and laws pertaining to the prevention of
traumatic or acquired brain injury and"
Insert "pertaining"
Co-Chair Stedman OBJECTED.
Senator Huggins proposed an Amendment to Amendment 1:
Change "page 4" to "page 3"
Change "lines 6-7" to "lines 27-28"
Co-Chair Stedman OBJECTED for discussion purposes.
Senator Huggins explained the changes. Co-Chair Stedman
noted that Amendment 1 was written to Version E of the bill
and the committee has adopted Version S.
Co-Chair Stedman WITHDREW his OBJECTION to the amendment to
Amendment 1. There being NO further OBJECTION, the
amendment to Amendment 1 was adopted.
Senator Huggins explained Amendment 1. He said the
amendment addresses previous testimony regarding helmets.
The amendment removes the mandated helmet provision.
9:23:49 AM
Senator Olson asked if the bill allows the wearing of a
helmet at the discretion of the rider. Co-Chair Stedman
concurred.
AT-EASE 9:24:32 AM
RECONVENED 9:25:30 AM
Senator Olson spoke of a concern regarding a helmet law,
which unfairly penalizes people in his district who ride
snowmobiles. He wished to study the bill further to ensure
that it did not adversely affect his district.
Co-Chair Stedman WITHDREW his objection to Amendment 1.
There being NO further OBJECTION, Amendment 1 was adopted.
SB 219 was heard and HELD in Committee for further
consideration.
9:27:18 AM
SENATE BILL NO. 237
"An Act extending the deadline for authorizing school
construction debt reimbursed by the state."
Co-Chair Stedman stated that it was the first hearing on
the bill.
Co-Chair Hoffman MOVED to ADOPT the CS for SB 237, labeled
26-LS1342/S.
Co-Chair Stedman OBJECTED.
9:27:43 AM
JAY LIVEY, STAFF, CO-CHAIR HOFFMAN, explained the changes
in Version S. He stated that the purpose of the CS is to
address the way in which state funds are used to pay for
school construction. The objectives are to provide a more
predictable method of funding for both the Regional
Educational Attendance Areas (REAA's) and municipal
districts. He explained that the first two sections of the
bill address the construction of REAA schools.
Mr. Livey reported that Section 1 contains legislative
findings which refer to the Kasayulie vs. Alaska court
case. This case was introduced seven or eight years ago,
but has not been finally settled. In the case, the judge
noted that the state has a statutory process for funding
municipal schools through the debt service program, but it
had no comparable program for funding REAA schools. The
court also found that this situation created an unfair
environment in terms of money available. The sponsor also
believes that it creates an unfair environment in which
REAA funding planners have considerable uncertainty about
funds available and makes it difficult to plan for future
construction of buildings.
9:30:00 AM
Mr. Livey highlighted Section 2 of the bill, which
addresses the above-mentioned deficiency by creating a fund
from which REAA construction dollars are dispersed. Money
is deposited in the fund according to a formula which is
linked to the outstanding debt amount for municipal
schools.
Mr. Livey explained how the formula works. The outstanding
debt amount for municipal schools represents what the
state's obligation currently is for the amount of money to
fund for new construction in schools. As noted in the
findings section, this amount is about $1.2 billion and is
expected to remain the same over the next two years. The
findings section also notes that about $515 million has
been spent in the last ten years on REAA's schools. In
addition, there is a backlog of about ten or eleven REAA
schools that need to be funded over the next few years. He
stated that spending amounts in municipal schools is higher
than the amount spent in REAA schools by about 28 percent.
If the outstanding debt amount of $1.2 billion is
multiplied by 28 percent, and that total is multiplied by
the percent of all REAA students, which is about 12
percent, the result is about $40 million per year. The bill
proposes using this formula to fund REAA construction.
Mr. Livey described aspects of the fund. The money would be
spent from the fund by the Department of Education in the
same manner as they would decide to fund REAA schools
currently. All requirements would be approved by the
department. The balance of the fund would not exceed
$100,000,000.
Mr. Livey emphasized that the funding would provide some
certainty to REAA construction planners and to the
Department of Education.
9:33:29 AM
Mr. Livey explained that the third section of the bill
addresses municipal districts. Currently, the state
reimburses municipal districts at 70 percent of their
outstanding debt for school construction; however, the
statute must be renewed every three years. The bill
proposes to make 70 percent permanent in order to reduce
funding uncertainty among district planners.
9:34:16 AM
Co-Chair Hoffman shared information as to how the bill
would address three of the backlogged school within the
$344 million backlog of eleven schools. He hoped that the
remaining eight schools could be addressed over the next
two years. He noted that $40 million is the minimum amount
and the legislature can provide more funding if it desires.
Co-Chair Stedman WITHDREW his objection to adopting the CS.
There being NO further OBJECTION, it was so ordered.
Co-Chair Stedman suggested that the sponsor define the
rural attendance area.
9:35:55 AM
SENATOR KEVIN MEYER, sponsor, related that the bill started
out as a simple extension of the current 70/30 debt
reimbursement program. The bill is normally extended for
two or three years at a time and an attempt is made to
incorporate rural schools with construction needs. The bill
formulizes a process already in place and puts it into
statute. He voiced support for the new CS and the suggested
changes.
Co-Chair Stedman asked where in the state schools are
needed. Senator Meyer could only speak for the Anchorage
schools, where there is a backlog of requests. The 70/30
program is in place for all municipal and urban schools and
is available every year.
9:38:47 AM
Co-Chair Stedman spoke of the needs in Southeast Alaska
being "kids and jobs".
Senator Huggins discussed the need in MatSu for 4-6
backlogged schools.
9:39:25 AM
Co-Chair Hoffman spoke of conversations with
superintendents in Anchorage and Fairbanks and hoped that
they were looking favorably at the legislation. He hoped to
assuage concerns over construction of urban and rural
schools.
Co-Chair Stedman noted one fiscal note from the Department
of Education showing the cost of debt reimbursement
starting in FY 2013 at $3,700,000.
9:40:42 AM
ANDREA STORY, JUNEAU SCHOOL BOARD, spoke in favor of the
bill on behalf of the Board. She reported that the bill has
been very successful in helping with major maintenance in
Juneau. She spoke of efforts of the school district to keep
up on building construction and maintenance needs. She
pointed out that Alaska Association of School Boards also
supports the legislation. She hoped to see both urban and
rural schools flourish because schools are the centers of
communities.
9:42:12 AM
EDDY JEANS, DIRECTOR, SCHOOL FINANCES AND FACILITIES,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, offered to
answer questions. When asked by Co-Chair Stedman if the
department supported the bill, he reported that the
department is neutral on the bill.
Senator Olson asked what changes in construction are
expected as a result of the bill. Mr. Jeans related that
with the inclusion of the amendment, a request from the
administration would be forthcoming on an annual basis for
at least one school construction project. The legislature,
over the past ten years, has funded a number of
construction projects in rural Alaska. He thought
construction and major maintenance needs around the state
have been addressed fairly well the last ten years, much
better than the ten years prior.
Senator Olson inquired if the Kasayulie vs. Alaska case
would have an effect on the state's actions. Mr. Jeans said
that was difficult to answer because the case has been
dormant for a number of years, partly because the
legislature has provided funding for rural schools.
9:44:43 AM
Co-Chair Hoffman agreed that the legislature has addressed
rural school needs; however, the administration has not
supported rural school construction for the past ten years.
Every single year the administration has requested the
money needed to pay bond indebtedness and the legislature
has funded it.
Co-Chair Stedman requested information on what was spent in
rural and non-rural areas on school construction in the
past 20 years. Mr. Jeans offered to provide that
information.
SB 237 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 9:47 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| sb237 Sponsor Statement.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 237 |
| sb237 Sectional Analysis.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 237 |
| sb237 Program Funding_Historical and Projected.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 237 |
| sb237 - DEED Capital Projects.PDF |
SFIN 3/22/2010 9:00:00 AM |
SB 237 |
| SB 237 Sponsor Statement.docx |
SFIN 3/22/2010 9:00:00 AM |
SB 237 |
| SB 237 Kasayulie Ruling.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 237 |
| SB 237 Proposed CS FIN Version S.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 237 |
| SB 237 Sectional SFIN.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 237 |
| SB 237 DEED Capital Projects.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 237 |
| SB 219 Proposed CS FIN Version S.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 219 |
| SB 219 Summary of Changes_S.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 219 |
| SB 144 Proposed CS FIN Version E.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 144 |
| SB 219 Amendment 1.pdf |
SFIN 3/22/2010 9:00:00 AM |
SB 219 |