Legislature(2019 - 2020)SENATE FINANCE 532

04/15/2019 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 92 PFD CONTRIBUTIONS TO GENERAL FUND TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ SB 95 ALASKA RAILROAD CORP. LAND TRANSFERS TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 44 TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS TELECONFERENCED
Moved CSSB 44(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 15, 2019                                                                                            
                         9:02 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:02:14 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  von  Imhof  called  the  Senate  Finance  Committee                                                                   
meeting to order at 9:02 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 Donny Olson                                                                                                             
Senator Mike Shower                                                                                                             
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Bill Wielechowski                                                                                                       
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Juli  Lucky,  Staff,  Senator  Natasha  von  Imhof;  Rynnieva                                                                   
Moss,  Staff, Senator  John  Coghill;  Senator John  Coghill,                                                                   
Sponsor;  Jasmin Martin,  Staff, Senator  David Wilson;  Anne                                                                   
Weske, Director,  Permanent Fund  Dividend Division;  Senator                                                                   
Cathy Giessel.                                                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Barb   Blakeley,   Vice-President,   Whittier   Manor   Condo                                                                   
Association,  Whittier; Dutch  Lucore,  Whittier Manor  Condo                                                                   
Association,   MatSu;  Brent   Cole,  Whittier  Manor   Condo                                                                   
Association, Anchorage.                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 44     TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS                                                                               
                                                                                                                                
          CSSB 44(FIN) was REPORTED out of committee with a                                                                     
          "do pass" recommendation and with two previously                                                                      
          published fiscal notes: FN 1(CED) and FIN 2(ADM).                                                                     
                                                                                                                                
SB 92     PFD CONTRIBUTIONS TO GENERAL FUND                                                                                     
                                                                                                                                
          SB 92 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 95     ALASKA RAILROAD CORP. LAND TRANSFERS                                                                                  
                                                                                                                                
          SB 95 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 44                                                                                                            
                                                                                                                                
     "An Act relating to the prescription of drugs by a                                                                         
    physician assistant without physical examination."                                                                          
                                                                                                                                
9:03:30 AM                                                                                                                    
                                                                                                                                
Senator Wilson MOVED to ADOPT a committee substitute.                                                                           
                                                                                                                                
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
                                                                                                                                
9:04:03 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:04:40 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:04:48 AM                                                                                                                    
                                                                                                                                
Senator Wilson MOVED to ADOPT the committee substitute for                                                                      
SB 44, Work Draft 31-LS0019\E (Fisher, 4/11/19).                                                                                
                                                                                                                                
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
                                                                                                                                
9:05:33 AM                                                                                                                    
                                                                                                                                
JULI LUCKY, STAFF, SENATOR NATASHA VON IMHOF, addressed the                                                                     
Explanation of Changes (copy on file):                                                                                          
                                                                                                                                
     Page 3, line 2: changes "person" to "patient"                                                                              
                                                                                                                                
          After discussion with Leg Legal it was determined                                                                     
          that the term "person" is used when describing                                                                        
          scenarios where an individual is not yet in a                                                                         
          patient-provider relationship or when it comes to                                                                     
          consent; and that the term "patient" is used when                                                                     
          an individual is actively participating as a                                                                          
          patient.                                                                                                              
                                                                                                                                
     Page 3, line 5: removes [(c)] from that line as it was                                                                     
     a Leg Legal typo                                                                                                           
                                                                                                                                
     Page 3, line 13: adds a Section 5, creating authority                                                                      
     for the State Medical Board write regulations to                                                                           
     implement this bill                                                                                                        
                                                                                                                                
     Page 3, line 19: gives an immediate effective date for                                                                     
     Section 5                                                                                                                  
                                                                                                                                
Co-Chair von Imhof WITHDREW the OBJECTION. There being NO                                                                       
further OBJECTION, the proposed committee substitute was                                                                        
ADOPTED.                                                                                                                        
                                                                                                                                
Senator Micciche stated that he had introduced the original                                                                     
telehealth bill. He felt that telehealth was remarkably                                                                         
successful.                                                                                                                     
                                                                                                                                
Senator Wilson MOVED to REPORT CSSB 44(FIN) out of                                                                              
committee with individual recommendations and attached                                                                          
fiscal notes.                                                                                                                   
                                                                                                                                
CSSB 44(FIN) was REPORTED out of committee with a "do pass"                                                                     
recommendation and with two previously published fiscal                                                                         
notes: FN 1(CED) and FIN 2(ADM).                                                                                                
                                                                                                                                
                                                                                                                                
SENATE BILL NO. 95                                                                                                            
                                                                                                                                
     "An Act approving the transfer of certain Alaska                                                                           
     Railroad Corporation land; and providing for an                                                                            
     effective date."                                                                                                           
                                                                                                                                
9:09:42 AM                                                                                                                    
                                                                                                                                
RYNNIEVA MOSS, STAFF, SENATOR JOHN COGHILL, explained the                                                                       
bill. She outlined the sections and subsections of the                                                                          
bill.                                                                                                                           
                                                                                                                                
9:11:29 AM                                                                                                                    
                                                                                                                                
SENATOR JOHN  COGHILL, SPONSOR,  stated that the  legislation                                                                   
put Whittier  Manor into private  hands and put  railroad out                                                                   
of  a  conflict with  the  city.  He  felt that  the  private                                                                   
ownership  would increase the  tax base,  and the  ability to                                                                   
improve the building.                                                                                                           
                                                                                                                                
Co-Chair von  Imhof stated that  there was invited  testimony                                                                   
prepared to present to the committee.                                                                                           
                                                                                                                                
9:12:50 AM                                                                                                                    
                                                                                                                                
BARB   BLAKELEY,   VICE-PRESIDENT,   WHITTIER   MANOR   CONDO                                                                   
ASSOCIATION, WHITTIER  (via teleconference), shared  that she                                                                   
owned  a  condo  in  Whittier  Manor.  She  stated  that  the                                                                   
property was  owned by the  Alaska Railroad Corporation,  and                                                                   
the forty  year lease  was set to  expire December  31, 2019.                                                                   
She stated that  there had been an attempt for  many years to                                                                   
purchase  the property,  but the  matter  was complicated  by                                                                   
the master  lease agreement  that the  railroad had  with the                                                                   
City of  Whittier, whereby  when some  of the leases  expire,                                                                   
the management  of the leases  would be assumed by  the city.                                                                   
She stated that  a long-term lease was not  possible, because                                                                   
the  city's master  lease  was  set to  expire  in 2033.  She                                                                   
stressed  that  it  was  a  time   of  uncertainty,  and  the                                                                   
property values  were declining. She stressed  that financing                                                                   
was  unavailable for  units for  sale, because  of the  lease                                                                   
agreement.  She shared  that there was  an agreement  reached                                                                   
for the railroad to sell the land  to the condo association.                                                                    
                                                                                                                                
Co-Chair von  Imhof shared  that there  were two people  from                                                                   
the Alaska Railroad Corporation available for questions.                                                                        
                                                                                                                                
Co-Chair von Imhof OPENED public testimony.                                                                                     
                                                                                                                                
9:16:30 AM                                                                                                                    
                                                                                                                                
DUTCH LUCORE,  WHITTIER MANOR  CONDO ASSOCIATION,  MATSU (via                                                                   
teleconference),  spoke in  support  of the  bill. He  echoed                                                                   
the comments from Ms. Blakeley.                                                                                                 
                                                                                                                                
9:17:31 AM                                                                                                                    
                                                                                                                                
BRENT  COLE,  WHITTIER  MANOR  CONDO  ASSOCIATION,  ANCHORAGE                                                                   
(via teleconference), spoke in support of the bill.                                                                             
                                                                                                                                
Co-Chair von Imhof CLOSED public testimony.                                                                                     
                                                                                                                                
9:18:55 AM                                                                                                                    
                                                                                                                                
Senator Micciche reviewed the fiscal note.                                                                                      
                                                                                                                                
SB 95 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 92                                                                                                            
                                                                                                                                
     "An Act relating to contributions from permanent fund                                                                      
     dividends to the general fund."                                                                                            
                                                                                                                                
9:20:15 AM                                                                                                                    
                                                                                                                                
JASMIN MARTIN, STAFF, SENATOR DAVID WILSON, introduced                                                                          
herself.                                                                                                                        
                                                                                                                                
9:20:48 AM                                                                                                                    
                                                                                                                                
SENATOR DAVID WILSON, SPONSOR explained the legislation. He                                                                     
stated that it provided a mechanism to donate an individual                                                                     
Permanent Fund Dividend to the General Fund.                                                                                    
                                                                                                                                
Senator Wilson explained the Sectional Analysis (copy on                                                                        
file):                                                                                                                          
                                                                                                                                
     Part (a)                                                                                                                   
          ?  Defines   the  parameters  and   increments  for                                                                   
          contributing to the general fund,                                                                                     
          ?     Establishes     that    donations     through                                                                   
          Pick.Click.Give.  take priority  over donations  to                                                                   
          the general fund if there is a shortfall, and;                                                                        
          ? Requires  a seven  percent administration  fee is                                                                   
          deducted from donations to the general fund.                                                                          
          page 1, lines 3  15 continuing on page 2, line 1                                                                      
     Part (b)                                                                                                                   
          ?  Notes  that  a  public   agency  that  claims  a                                                                   
          dividend   on  an   individual's   behalf  is   not                                                                   
          permitted   to   make   contributions   from   that                                                                   
          dividend.                                                                                                             
          page 2, lines 2-4                                                                                                     
     Part (c)                                                                                                                   
          ? Explicitly states that this is separate from                                                                        
          the Pick.Click.Give "button," or mechanism, in                                                                        
          the dividend application.                                                                                             
          page 2, lines 5-8                                                                                                     
                                                                                                                                
Senator Wilson explained the fiscal note.                                                                                       
                                                                                                                                
Co-Chair von Imhof OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair von Imhof CLOSED public testimony.                                                                                     
                                                                                                                                
Co-Chair  Stedman noted  that the credit  agencies looked  to                                                                   
the Permanent Fund  Dividend to collect funds  that were owed                                                                   
to different entities.  He wondered what would  occur, should                                                                   
there  be garnishments,  and whether  the  dividend could  be                                                                   
gifted   to  the   state   while   not  paying   one's   debt                                                                   
obligations.                                                                                                                    
                                                                                                                                
Co-Chair  von   Imhof  called   Ms.  Weske  to   address  the                                                                   
question.                                                                                                                       
                                                                                                                                
9:26:51 AM                                                                                                                    
                                                                                                                                
ANNE  WESKE,  DIRECTOR,  PERMANENT  FUND  DIVIDEND  DIVISION,                                                                   
replied that there  was a priority order for  PFD payments in                                                                   
the  payout, and  garnishments  were first  in that  priority                                                                   
order. One could not bypass a garnishment.                                                                                      
                                                                                                                                
Co-Chair  Stedman surmised  that the  people could not  avoid                                                                   
their obligations by giving their PFD to the state.                                                                             
                                                                                                                                
Ms. Weske replied in the affirmative.                                                                                           
                                                                                                                                
Senator Micciche  remarked that the  bill did not  change the                                                                   
current situation  in the  state. He  felt that there  should                                                                   
be a consideration for people  to donate their PFD tax free.                                                                    
                                                                                                                                
Co-Chair  von Imhof  looked  at  the Sponsor  Statement,  and                                                                   
remarked that  some cases  could be counted  as a  tax exempt                                                                   
contribution,  but  said  that   one  should  consult  a  tax                                                                   
professional.                                                                                                                   
                                                                                                                                
                                                                                                                                
Senator Micciche  agreed, and  commented on the  contribution                                                                   
based on one's tax bracket.                                                                                                     
                                                                                                                                
Co-Chair  von  Imhof  stated  that  there  could  be  further                                                                   
conversations about an amendment.                                                                                               
                                                                                                                                
Senator  Wilson stressed  that  people should  keep in  touch                                                                   
with a tax professional about their contribution.                                                                               
                                                                                                                                
9:31:29 AM                                                                                                                    
                                                                                                                                
Senator  Bishop  wondered  whether   the  bill  was  created,                                                                   
because of Senator Wilson's concerns  from his constituents.                                                                    
                                                                                                                                
Senator  Wilson replied  that it  was in  response to  people                                                                   
around the state.                                                                                                               
                                                                                                                                
Co-Chair  von  Imhof  cautioned  that  tax  planning  was  an                                                                   
individual issue.                                                                                                               
                                                                                                                                
Senator  Micciche stressed  that  if someone  does not  apply                                                                   
for the dividend,  the dividend get split up  between all the                                                                   
people  that  apply.  He  stressed  that  participating  will                                                                   
always be related to one's tax bracket.                                                                                         
                                                                                                                                
Senator Wilson shared  that there was a new  program added to                                                                   
the PFD,  and asked  for how  that program  had affected  the                                                                   
other PFD charitable giving programs.                                                                                           
                                                                                                                                
Ms.  Weske shared  that the  education raffle  was added  the                                                                   
year  before, but  the numbers  for  Pick.Click.Give did  not                                                                   
decline,  nor  did  UA college  savings.  She  stressed  that                                                                   
there  was  an  additional  $1   million  for  the  education                                                                   
raffle.                                                                                                                         
                                                                                                                                
SB  92   was  HEARD  and   HELD  in  committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:34:40 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:34 a.m.                                                                                          

Document Name Date/Time Subjects
SB 92 Sponsor Statement.pdf SFIN 4/15/2019 9:00:00 AM
SSTA 4/4/2019 1:30:00 PM
SB 92
SB 92 Letters of Support.pdf SFIN 4/15/2019 9:00:00 AM
SB 92
SB 92 - Explaination of Changes Ver. A to Ver. M.pdf SFIN 4/15/2019 9:00:00 AM
SB 92
CSSB 92 Version M - Sectional Summary.pdf SFIN 4/15/2019 9:00:00 AM
SB 92
SB 92 - Tax Memo 2018 -17-509boo.pdf SFIN 4/15/2019 9:00:00 AM
SB 92
SB 92 - Directed Donations Memo 2019 -19-151kwg.pdf SFIN 4/15/2019 9:00:00 AM
SB 92
SB 95 ARRC Resolution 3.21.19.pdf SFIN 4/15/2019 9:00:00 AM
SB 95
SB 95 Background - photos.pdf HRES 5/6/2019 1:00:00 PM
HRES 5/8/2019 1:00:00 PM
SFIN 4/15/2019 9:00:00 AM
SB 95
SB95 Sponsor Statement.pdf HRES 5/6/2019 1:00:00 PM
HRES 5/8/2019 1:00:00 PM
SFIN 4/15/2019 9:00:00 AM
SRES 4/5/2019 3:30:00 PM
SB 95
SB 95 Testimony - Support.pdf HRES 5/6/2019 1:00:00 PM
SFIN 4/15/2019 9:00:00 AM
SB 95
SB 95 Weolber & Cole Letter 3.29.19.pdf SFIN 4/15/2019 9:00:00 AM
SB 95
SB 95 Whittier City Resolution 3.12.19.pdf SFIN 4/15/2019 9:00:00 AM
SB 95
SB 44 Work Draft verson E.pdf SFIN 4/15/2019 9:00:00 AM
SB 44
SB 44 CSSB44(FIN) Explanation of Changes vsn E.pdf SFIN 4/15/2019 9:00:00 AM
SB 44
SB 92 Deduction Priority List - Letterhead.pdf SFIN 4/15/2019 9:00:00 AM
SB 92