Legislature(2019 - 2020)SENATE FINANCE 532
05/06/2019 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB14 | |
| SB91 | |
| HB106 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 106 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 14 | TELECONFERENCED | |
| += | SB 91 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 6, 2019
9:01 a.m.
9:01:20 AM
CALL TO ORDER
Co-Chair von Imhof called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Lyman Hoffman
Senator Peter Micciche
Senator Mike Shower
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
Senator Donny Olson
ALSO PRESENT
Juli Lucky, Staff, Senator Natasha von Imhof; Sylvan Robb,
Administrative Services Director, Department of
Corrections, Office of Management and Budget;
Representative John Lincoln, Sponsor; Representative Tammie
Wilson, Sponsor; Nils Andreasen, Executive Director, Alaska
Municipal League; Senator Cathy Giessel; Elwin Blackwell,
School Finance Manager, Department of Education and Early
Development; Tim Mearig, Facilities Director, Department of
Education and Early Development.
PRESENT VIA TELECONFERENCE
Jim Anderson, Anchorage School District, Anchorage.
SUMMARY
SB 91 NUYAKUK RIVER: HYDROELECTRIC SITE
CSSB 91(FIN) was REPORTED out of committee with a
"no recommendation" recommendation and with one
previously published fiscal impact note: FN
1(DNR).
CSHB 14(FIN)
ASSAULT; SEX OFFENSES; SENT. AGGRAVATOR
SCS CSHB 14(FIN) was REPORTED out of committee
with a "do pass" recommendation and with one new
fiscal impact from the Department of Corrections;
one new zero fiscal note from the Alaska Judicial
System; one new Statement of Zero Fiscal Impact
for the Department of Health and Social Services,
the Department of Law, and the Department of
Public Safety; and two previously published
indeterminate fiscal notes: FN 8(ADM), FN 9(ADM).
HB 106 SCHOOL BOND DEBT REIMBURSEMENT
HB 106 was HEARD and HELD in committee for
further consideration.
CS FOR HOUSE BILL NO. 14(FIN)
"An Act relating to assault in the first degree;
relating to harassment; relating to sex offenses;
relating to the definition of 'dangerous instrument';
providing for an aggravating factor at sentencing for
strangulation that results in unconsciousness;
relating to the duties of the prosecuting attorney;
and relating to victim notifications."
9:02:00 AM
Co-Chair von Imhof relayed that the committee had heard the
Senate version of the bill (SB 14) on May 11, 2019; and SB
14 was heard on May 4, 2019.
9:02:54 AM
JULI LUCKY, STAFF, SENATOR NATASHA VON IMHOF, spoke to the
changes in the committee substitute (CS). She discussed the
Explanation of Changes document (copy on file):
The word "ejaculate" is replaced with "semen" to
better conform to current statute and legal precedent
and that term is defined. [P3, Line 6 and new ?5: P3,
Lines 17-19]
The rest of the changes relate to granting credit
against a sentence for time spent in treatment or on
electronic monitoring (EM), which necessitates a title
change and conforming changes to the applicability
language in section 11. [New ?6 & ?7]
Current AS 12.55.027(g) allows offenders guilty of
certain serious crimes to receive limited credit for
time spent on Electronic Monitoring (EM). SCS HB 14
(FIN) prohibits credit for EM for those specified
crimes but clarifies that credit can be granted when
the defendant is on EM while participating in
residential treatment. Sex offenders are removed from
this list and cannot get credit for time spent in
treatment OR on EM. [P3, Line 21 P4, Line 4]
Further clarifies in (j) that judges will determine
whether the sentence meets the declaration of purpose
criteria listed in AS 12.55.005 before granting credit
and in (k) that time cannot be "double counted" if a
defendant was on EM while receiving treatment. [P4,
Lines 5-11].
9:05:53 AM
Ms. Lucky stated that the language in (j) and (k) was
clarifying language meant to provide direction to the
court. She relayed that a title change resolution would be
needed if the CS were adopted by the committee, as well as
applicability changes in Section 11. She added that the
adoption of the CS would change the fiscal notes.
9:07:24 AM
Co-Chair von Imhof solicited comments from the committee.
Senator Micciche understood that the bill defined
strangulation to the point of unconsciousness as a crime,
as well as other changes. He shared that he supported the
electronic monitoring language.
9:09:24 AM
Senator Hoffman directed attention to the most recent
adoption of Section K, which specified that the electronic
monitoring and treatment programs did not have to be run
simultaneously. He asked whether the intent of the bill was
to allow for the credits to be claimed simultaneously.
Ms. Lucky stated that the intent of the section was that if
a person was under electronic monitoring and in treatment
simultaneously, credit could not be given for both. She
stressed that the issue had been debated rigorously and it
had been decided that if a person had a period of
electronic monitoring while not in treatment, or vice
versa, they could request credit for what was available
under the law. She noted that some crimes did not allow for
electronic monitoring credit. She said that if the offender
was in treatment on the same day as they were under
electronic monitoring, they could not count it as two days
of credit.
9:11:29 AM
Senator Micciche reminded that the combination would be for
other crimes and not the crimes on the list of "serious
crimes" as defined in the CS. For serious crimes, credit
could only be given for time spent in treatment.
9:12:25 AM
Ms. Lucky reviewed FN 8 from the Department of
Administration, OMB Component 43. The note was
indeterminate because the Office of Public Assistance could
not speak to how many new cases it might take on in the out
years.
Ms. Lucky reviewed FN 9 from Department of Administration,
OMB Component 1631. She noted that the note was
indeterminate for the same reasons as FN 8.
Ms. Lucky reviewed a Statement of Zero Fiscal Impact, which
replaced all the individual zero fiscal notes in the
packet, these notes reflect that no changes in regulation
and/or costs will be absorbed by the departments. The
departments included the Department of Health and Social
Services, Department of Law, and Department of Public
Safety.
Ms. Lucky addressed a new fiscal note from the Judiciary,
OMB Component 768. She noted that the note was not included
in the consolidated zero notes as it was not part of the
executive branch.
Ms. Lucky addressed a new fiscal impact note from
Department of Corrections, OMB Component 1381. She relayed
that the department would address the note.
9:15:16 AM
SYLVAN ROBB, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF CORRECTIONS, OFFICE OF MANAGEMENT AND BUDGET, addressed
the new fiscal impact note from the Department of
Corrections. She noted that the fiscal note was a draft.
The changes to the note from the previously published note
related to credit for electronic monitoring. The removal of
credit for electronic monitoring would result in several
individuals spending additional time in correctional
facilities. She said that the department projected that the
change would impact 363 defendants that had previously
received credit for EM, and those individuals would spend
an additional 36.6 days in incarceration, increasing the
daily population by 35.5 inmates. She furthered that the
cost for the inmates had been calculated at the marginal
rate of $44.98 per day. She stated that after talking with
the Deputy Director of Health and Rehabilitation Services
and the Director of Probation, Parole, and Pre-Trial,
failed to result in data on how many individuals attended
residential treatment pre-trial. A projected estimate,
without actual data, was that 10 percent would receive the
credit, which would bring the projected increase to the
daily population down from 35.5 to 32.
9:18:08 AM
REPRESENTATIVE JOHN LINCOLN, SPONSOR, thought the CS made
the bill stronger and better, particularly with regards to
electronic monitoring. He thanked the committee for working
on the bill.
9:19:02 AM
Co-Chair Stedman was appreciative of the thanks and of the
work between the house and the senate. He noted that it was
the sponsor's birthday.
Representative Lincoln acknowledged Senator Micciche's work
on the bill. He appreciated the collaborative nature of
their working relationship.
9:20:29 AM
Senator Micciche MOVED to ADOPT proposed committee
substitute for CSHB 14, Work Draft 31-LS0182\H (Radford,
5/5/19). There being NO OBJECTION, it was so ordered.
Co-Chair von Imhof noted that there were invited testifiers
online to answer questions.
9:21:31 AM
Senator Micciche offered brief a brief closing statement on
the legislation.
Senator Micciche MOVED to report SCS CSHB 14(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 14(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new fiscal impact from
the Department of Corrections; one new zero fiscal note
from the Alaska Judicial System; one new Statement of Zero
Fiscal Impact for the Department of Health and Social
Services, the Department of Law, and the Department of
Public Safety; and two previously published indeterminate
fiscal notes: FN 8(ADM), FN 9(ADM).
SENATE BILL NO. 91
"An Act relating to the development and operation of a
hydroelectric site at the Nuyakuk River Falls;
providing for the amendment of the management plan for
the Wood-Tikchik State Park; and providing for an
effective date."
9:23:45 AM
Co-Chair von Imhof relayed that the bill had been
previously heard on April 30, 2019. Public testimony had
been taken and was closed.
9:24:30 AM
Ms. Lucky discussed the proposed changes to the bill. She
emphasized that the intent of the bill had not changed. She
spoke to an Explanation of Changes document (copy on file):
AS 41.21.161 Establishes the Wood-Tikchik State Park;
AS 41.21.167 lists incompatible uses and specifies
certain uses that are allowed (or "not considered an
incompatible use").
The previous version of SB91 simply added Nuyakuk
River Falls to existing section (c), which allowed
development and operation of a hydroelectric site and
Lake Elva or Grant Lake.
The proposed CS puts this project in its own section
(e) and defines specific conditions for this site,
listed on page 1, lines 8-11, in order to respond to
local concerns about this project.
Ms. Lucky stated that the conditions for the site included
in the new subsection were as follows:
(e) The development and operation of a hydroelectric
site at the Nuyakuk River Falls is a compatible use if
the development and operation
(1) does not include a dam that fully spans a
river;
(2) maintains at least 70 percent of the daily
upstream water flow of an affected river along
the natural course of the river; and
(3) after July 1, 2024, is licenses by the
Federal Energy Regulatory Commission
9:26:42 AM
Senator Hoffman thanked Co-Chair von Imhof's office for
accommodating the conditions. He supported adoption of the
CS.
Co-Chair Stedman MOVED to ADOPT proposed committee
substitute for SB 91, Work Draft 31-LS0520\S (Wallace,
Fisher, 5/4/19). There being NO OBJECTION, it was so
ordered.
CSSB 91(FIN) was REPORTED out of committee with a "no
recommendation" recommendation and with one previously
published fiscal impact note: FN 1(DNR).
HOUSE BILL NO. 106
"An Act relating to school bond debt reimbursement."
9:28:29 AM
AT EASE
9:29:34 AM
RECONVENED
REPRESENTATIVE TAMMIE WILSON, SPONSOR, explained that House
Bill 106 would extend the termination date for the school
bond debt
Co-Chair von Imhof explained that currently there was a
moratorium on school bond debt reimbursement through 2020,
the bill would extend it an additional 5 years.
9:31:08 AM
9:31:19 AM
Co-Chair von Imhof OPENED public testimony.
9:31:35 AM
JIM ANDERSON, ANCHORAGE SCHOOL DISTRICT, ANCHORAGE (via
teleconference), spoke in opposition to the bill. He
explained that the current house budget already cut prior
year bond debt reimbursement by 50 percent going back 20
years. He said that adding the additional burden on
receiving no debt assistance through 2025 would put the
onus on Anchorage taxpayers. He stated that shifting the
states responsibility for bond debt did not decrease the
requirement but shifted it to those living in incorporated
areas. He stressed that supporting education meant
supporting the operation of school, the people in them, and
their capital needs.
9:33:06 AM
Co-Chair Stedman understood that the bill would be a
moratorium on adding new reimbursement requirements onto
the state going forward. He did not think the bill impacted
the accumulated school construction already undertaken. The
state would still annually consider how much debt the state
would be reimbursing. He wanted to clarify for the public
that the bill would block new projects from being added
until an alternative policy could be crafted.
Co-Chair von Imhof affirmed that Co-Chair Stedman was
correct, and the bill was a look forward and not a look
back. She asked whether the Anchorage School District had
done an excess capacity analysis on its 60 elementary
schools.
9:34:24 AM
Mr. Anderson answered in the affirmative and specified that
the school board had been briefed in the fall. It had been
recommended that the Mount Spur school should be closed,
and some programs should be merged. He related that the
recommendation had been based on the city planners
assessments on sum population growth in certain areas over
the next 20 years. He said that the analysis would be done
annually in the future. He thought that closing schools was
an emotional issue but believed that if membership
continued to decrease more schools would be closed.
Co-Chair von Imhof recalled that the body passed a bill the
previous year allowing for school closures and holding
harmless the revenue for a step-down of four years. The
intent had been to encourage schools to have conversations
about capturing capacity in schools. She thought that if
emotions ran high and people did not want to close their
local schools that was a choice that board would have to
make, and the cost would be passed onto the local
taxpayers. She asserted that the control was within the
school district to make the decision whether to maintain 60
elementary schools, 8 middle schools and 8 high schools.
9:36:57 AM
Senator Micciche looked at the table on the document titled
"State Portion Reimbursement Principal and Interest," (copy
on file). He was curious about the proportion related to
major maintenance versus new school construction of the
$800 million in bond debt. He noted the disparity between
organized and unorganized boroughs.
9:38:35 AM
NILS ANDREASEN, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE, relayed that the Department of Education and Early
Developments (DEED) 6-year plan showed $464 million in
needs for FY20; $189 million in needs for FY21; and an
average over the next 6 years of $231 million. For the 355
projects listed the total in upgrades was $1.4 billion. He
said that the requests that had been submitted by school
districts did not account for the full scope of need, only
priorities relative to each budget year, and were not
included in the states deferred maintenance numbers. For
the school construction program DEED showed the average
need between FY15 and FY20 was $234 million, with an
average of $230 million paid over those years. He furthered
that the number of schools funded by the $190 million in
FY20 was approximately 6, the school bond debt
reimbursement for that same year of under $100 million
accounted for nearly 30 schools. He stressed that without
the reimbursement those districts able to bond for the debt
would have to compete with REA school districts for
funding, or other municipal school districts that lacked
the tax base to bond for a greater share of debt. He asked
how the state identified the unaversive need and what was
the plan to address the need. He believed that the proposed
moratorium did not meet the states constitutional
obligations. He thought that the 5-year extension was
nothing but a recognition that the state did not have a
plan to address new school construction. He believed that
the legislature could seek other options that would benefit
both the state and municipal districts.
9:42:34 AM
9:42:42 AM
Co-Chair von Imhof CLOSED public testimony.
9:43:21 AM
Senator Micciche thought the state could not afford new
schools and he would likely support a moratorium of some
kind. He asked what percentage of the debt had to do with
new schools, and how much had to do with maintenance of old
schools.
ELWIN BLACKWELL, SCHOOL FINANCE MANAGER, DEPARTMENT OF
EDUCATION AND EARLY DEVELOPMENT, said that he would get
back to the committee with the information.
9:45:23 AM
Senator Micciche guessed that there needed to be a
separation of new construction and major maintenance of
existing schools when it came to bond debt reimbursement.
9:46:10 AM
Co-Chair von Imhof asked whether DEED travelled the state
to inspect the condition of schools and how well the
buildings were being maintained. She wondered whether there
were degrees of differences with regard to maintenance.
TIM MEARIG, FACILITIES DIRECTOR, DEPARTMENT OF EDUCATION
AND EARLY DEVELOPMENT, stated that statute provided for the
department to have an ongoing inspection process with
districts to ensure that minimum standards of care were
met. The division had an individual that travelled to ten
school districts per year to evaluate the compliance with
facility and maintenance practices and retain eligibility
for bond reimbursement and grants. He had not seen a great
deal of disparity in the condition of buildings of the same
age. He admitted that older buildings were more
challenging.
9:48:51 AM
Co-Chair von Imhof assumed that the department had a list
of all the buildings and a matrix through which the
buildings were prioritized based on age and condition.
Mr. Mearig stated that the state did not have a
comprehensive facility evaluation tool or requirement. The
state required a district to have an understanding and
condition of facilities. He said that in the Capital
Renewal portion of the Minimum Standards each district was
required to understand the age and capital needs of their
facilities that were over 1000 square feet.
9:50:23 AM
Co-Chair von Imhof believed the state built a school for
Healy Lake; after which the population dropped, and the
school was not opened.
Mr. Mearig replied that he did not have enough information
to comment on the school at Healy Lake.
Co-Chair von Imhof requested further information on whether
the state was paying to maintain, heat, or insure the
building, and whether there was a plan for the building.
9:51:06 AM
Co-Chair Stedman wanted to know how many schools were close
to the minimum count of 10 students. He agreed with Senator
Micciche's request for a breakdown of the reimbursement
requests. He wanted to add a request for a per capita
numeric. He used examples of the debt carried by Sitka and
Ketchikan. He asserted that his region needed students and
not new schools, but the Mat-Su was the opposite. He
reminded that K-12 education was a constitutional
requirement.
9:54:33 AM
Senator Shower appreciated the comments from the co-chairs
and supported the concept of the bill. He agreed that the
Mat-Su was growing. He had spoken to several individuals in
the educational system. He discussed his educational
background in the State of Florida. He thought that the
committee needed more data in order to make decisions.
9:56:22 AM
Senator Bishop remarked that the committee had had the same
conversation thirty years previously. He mentioned Rampart
School was closed for a period of ten years, after which
population grew and the school reopened. He asserted that
there was nothing static about the equation.
9:57:30 AM
Co-Chair von Imhof thought it was important to use data to
drive policy decisions. She suggested that if DEED wanted
assistance from the committee, more data would be
necessary. She asserted that school maintenance data should
be entered into a database. She thought the age of a school
building was irrelevant. She thought some schools fared
better than others over time due to weather or other
factors. She reiterated the need for DEED to provide
further information.
9:59:36 AM
Senator Bishop addressed FN 1 from Debt Service, OMB
Component 153. The note had zero fiscal impact.
Co-Chair von Imhof set the bill aside.
HB 106 was HEARD and HELD in committee for further
consideration.
10:00:27 AM
RECESSED
2:35:24 PM
RECONVENED
ADJOURNMENT
2:35:36 PM
The meeting was adjourned at 2:35 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB106 ver A Sponsor Statement 3.26 (1).pdf |
HFIN 4/1/2019 1:30:00 PM SFIN 5/6/2019 9:00:00 AM |
HB 106 |
| HB106 ver A Back Up Information - School Debt Spreadsheet 4.17.19.pdf |
SFIN 5/6/2019 9:00:00 AM SFIN 2/14/2020 9:00:00 AM |
HB 106 |
| SB 91 CS SB 91 (FIN) v. S work draft.pdf |
SFIN 5/6/2019 9:00:00 AM |
SB 91 |
| SB 91 CS SB 91 (FIN) v. S Explanation.pdf |
HRES 5/8/2019 1:00:00 PM HRES 5/10/2019 1:00:00 PM SFIN 5/6/2019 9:00:00 AM |
SB 91 |
| HB 14 SCS CSHB 14 (FIN) v. H Statutory References.pdf |
SFIN 5/6/2019 9:00:00 AM |
HB 14 |
| HB 14 SCS CSHB 14 (FIN) v. H.pdf |
SFIN 5/6/2019 9:00:00 AM |
HB 14 |
| HB 14 SCS CSHB 14 (FIN) v. H Explanation.pdf |
SFIN 5/6/2019 9:00:00 AM |
HB 14 |