Legislature(2021 - 2022)SENATE FINANCE 532
04/12/2021 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB76 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 89 | TELECONFERENCED | |
| += | HB 76 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SENATE FINANCE COMMITTEE
April 12, 2021
9:04 a.m.
9:04:14 AM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 9:04 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Natasha von Imhof
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Erin Shine, Staff, Senator Click Bishop; Neil Steininger,
Director, Office of Management and Budget, Office of the
Governor.
PRESENT VIA TELECONFERENCE
Megan Wallace, Director, Legislative Legal Services, Alaska
State Legislature; Adam Crum, Commissioner, Department of
Health and Social Services.
SUMMARY
CSHB 76(FIN) am
EXTENDING COVID 19 DISASTER EMERGENCY
CSHB 76(FIN) am was HEARD and HELD in committee for
further consideration.
CS FOR HOUSE BILL NO. 76(FIN) am
"An Act extending the January 15, 2021, governor's
declaration of a public health disaster emergency in
response to the novel coronavirus disease (COVID-19)
pandemic; approving and ratifying declarations of a
public health disaster emergency; providing for a
financing plan; making temporary changes to state law
in response to the COVID- 19 outbreak in the following
areas: occupational and professional licensing,
practice, and billing; telehealth; fingerprinting
requirements for health care providers; charitable
gaming and online ticket sales; access to federal
stabilization funds; wills; unfair or deceptive trade
practices; meetings of shareholders; and school
operating funds; relating to informed consent for
COVID-19 vaccines; relating to personal objections to
the administration of COVID-19 vaccines; providing
immunity from liability and disciplinary action for
occupational licensees for exposure of clients to
COVID-19; providing immunity from liability for
persons engaging in business and their employees for
exposure of customers to COVID-19; and providing for
an effective date."
9:04:47 AM
Co-Chair Bishop noted that it was the third hearing of HB
76. He intended to hear an introduction of a Committee
Substitute 9cs0 and then set the bill aside.
Senator Hoffman MOVED to ADOPT proposed committee
substitute for HB 76, Work Draft 32-GH1011\E (Dunmire,
4/9/21).
Co-Chair Bishop OBJECTED for discussion.
9:05:40 AM
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, discussed the CS
for CSHB 76 (FIN) am. She noted that the CS extended the
January 15 disaster declaration to December 31, 2021; and
that there were no mandates besides the requirement to
submit a monthly report on the financing plan. She
summarized that the CS would provide the governor and the
administration tools to use in response to COVID-19. The CS
allowed for vaccine distribution, expedited procurement,
would reinstate telehealth flexibility, and the ability to
receive the emergency allotment for Supplemental
Nutritional Assistance Program (SNAP) benefits and Federal
Emergency Management Agency (FEMA) funds for congregate
shelters. She noted that there were title changes on page 1
of the bill that were reflected later in the bill.
Ms. Shine spoke to a Sectional Analysis document (copy on
file):
Section 1 Findings Establishes legislative findings
pertaining to COVID-19. The Legislature finds that it
is in the best interest of the state to take
appropriate steps to continue to contain the spread of
COVID-19; to distribute COVID-19 vaccines statewide;
and to take appropriate steps to limit further harm to
the state's economy, enable displaced workers in the
state to return to work, and to allow students to
rejoin in-person classes.
Ms. Shine wanted to present Section 2, Section 3, and
Section 4 together in order to create a clear picture of
what the CS was trying to accomplish:
Section 2 Public Health Disaster Emergency; Approval,
Ratification, and Extension of Disaster Emergency
Approves and ratifies the declarations of a public
health disaster emergency issued on November 15, 2020,
December 15, 2020, and January 15, 2021.
Extends the Public Health Disaster Emergency issued on
January 15, 2021 to December 31, 2021.
Provides that the Commissioner of the Department of
Health & Social Services (DHSS) may certify to the
Governor that there is no longer a present outbreak of
COVID-19, or a credible threat of an imminent
outbreak. Upon receiving this certification, the
Governor shall submit a proclamation to the
Legislature that indicates that the public health
disaster emergency no longer exists.
Ms. Shine noted that there were multiple statutory means of
ending the disaster declaration early.
9:08:54 AM
Ms. Shine continued to address the Sectional Analysis:
Section 3 Emergency Powers of The Governor
Restricts the governor from acting in response to
COVID-10 public health disaster emergency by removing
access to:
?26.23.020(g)(4): commandeer or utilize any
private property;
?26.23.020(g)(5): direct and compel the
relocation of all or part of the population form
any stricken or threatened area;
?26.23.020(g)(6): prescribe routes, modes of
transportation and destinations in connection
with necessary relocation;
?26.23.020(g)(8): suspend or limit the sale,
dispensing, or transportation of alcoholic
beverages, explosives, or combustibles; and
?26.23.020(g)(11): use money from the oil and
hazardous substance release response account to
respond to the disaster related to an oil or
hazardous substance discharge.
Ms. Shine explained that the actions from the governor's
access listed in Section 3 were not need or utilized in
response to COVID-19. She continued to address the
Sectional Analysis:
Section 4 Emergency Powers of the Commissioner of
Health and Social Services
Provides declaration powers to the Commissioner or
Health and Social Services for a public health
emergency to respond to the ongoing COVID-19 pandemic
to support emergency allotments for Supplemental
Nutritional Assistance Program, CMS blanket waivers,
and 1915(c) Appendix K waivers.
Ms. Shine noted that Section 4 was a new section that
proposed a new concept. She reminded that Alaska was
eventually going to lose $8 million in emergency allotment
SNAP benefits. The Family First Coronavirus Response Act
required a state emergency or disaster declaration to
qualify for the emergency allotment SNAP benefits. The
language had been provided by the Department of Health and
Social Services (DHSS) and mirrored the language adopted by
the state of Michigan.
9:12:58 AM
Senator Wilson noted that the previous declaration had a
provision whereby the DHSS commissioner could help allocate
a scarce resource such as a vaccine. He asked if the
proposed language would give the same powers.
Ms. Shine stated that the proposed CS did not provide the
powers to the DHSS commissioner. She detailed that in the
disaster statutes (AS 26.23.020) there was power for the
governor to access scarce resources and waive the
procurement code.
Senator Olson asked if the governor was aware of Section 3
and if he was in support of the language.
Ms. Shine believed the governor was aware of the section
and wanted the department to respond to the question.
9:14:46 AM
Ms. Shine addressed sections through an Explanation of
Changes document (copy on file):
Section 5: Public Health Disaster Emergency; Financing
Plan (Page 5, line 14 Page 6, line 19)
Removes previous subsection (a)(8)
Ms. Shine indicated that the removal of language in Section
5 would be clearer as addressed in a later section, which
she would address later in her presentation. She continued
to address the Explanation of Changes:
Section 6: Reports
(Page 6, line 20-31)
Changes date on page 6, line 22 from March 1 to May 1
Changes date on page 6, line 29-30 from November 30,
2021 to January 31, 2022
Section 7: Professional and Occupational Licensing
(Page 7, line 1 Page 8, line 6)
Changes date on page 7, line 14 from September 30 to
December 31
Section 8: Telemedicine and Telehealth
(Page 8, line 7 Page 9, line 8)
On page 9, lines 7-8, includes behavioral health care
service providers to the definition of health care
provider.
Ms. Shine specified that the proposed change to Section 8
was to create parity for behavioral health providers
utilizing tele-medicine or tele-health in the state. She
relayed that Section 9 and Section 10, relating to
charitable gaming and school operating funds, had no
changes from the previous version of the bill. She
continued to address the Explanation of Changes:
New Section Added
Section 11: Workers' Compensation Presumption of
Compensability (Page 10, line 12 Page 11, line 6)
Provides that individuals employed as firefighters,
emergency medical technicians, paramedics, peace
officers, or health care providers, who contract
COVID-19, are presumed to have contracted an
occupational disease arising out of and in the course
of employment during the public health disaster
emergency declaration and are eligible for workers
compensation benefits.
New Section Added
Section 12: Program Execution
(Page 11, lines 7-22)
Restricts the governor from increasing appropriations
based on receipt of federal receipts through the
revised program legislation (RPL) process for the
Coronavirus Response and Relief Supplemental
Appropriations Act, the American Rescue Plan Act, or
the funds appropriated by the 117th Congress for
infrastructure, jobs, as part of the American Jobs
Plan, related to COVID-19 or economic recovery.
Provides clarification that this section does not
apply to appropriations and expenditures ratified
under HB 313 (ch. 32, SLA 2020), or to appropriations
increased in compliance with AS37.07.080(h) before the
retroactive February 14, 2021 effective date.
Ms. Shine specified that Section 12 was tied to the change
in the financing plan and the two sections went together.
9:18:47 AM
Ms. Shine continued addressed sections via the Explanation
of Changes document:
New Section Added
Section 13: Civil Liability
(Page 11, lines 23-31)
Provides civil and criminal liability for a state
agency, or an employee or agent of the state acting in
an official capacity for the state for acts performed
in good faith based on the authority in this Act. This
section does not grant immunity for acts or omissions
that constitute gross negligence, reckless misconduct,
or intentional misconduct.
Section 14: Licensee Liability for Client Exposure To
COVID-19
(Page 12, lines 1-21)
Changes section from codified to uncodified law and is
repealed June 30, 2023.
Provides clarity for what constitutes "gross
negligence" with respect to licensee actions to
protect clients from COVID-19. Substantial compliance
with applicable health mandates proves a licensee is
not negligent. If there are no mandates that apply to
the licensee, substantial compliance with mandates
from another municipality or federal guidelines would
serve as proof that a licensee was not negligent.
Section 15: Business and Employee Liability for
Customer Exposure to COVID-19
(Page 12, line 22 Page 13, line 17)
Changes section from codified to uncodified law and is
repealed June 30, 2023.
Provides clarity for what constitutes "gross
negligence" with respect to a business's actions to
protect customers from COVID-19. Substantial
compliance with applicable health mandates proves a
business is not negligent. If there are no mandates
that apply to the business, substantial compliance
with mandates from another municipality or federal
guidelines would serve as proof that a business was
not negligent. Defines "business" for this section
using a definition that currently exists in statute.
Ms. Shine noted that Section 14 and Section 15 went
together and were previously codified law. The CS had a
sunset date for each of the two sections, and the bill
revisor had suggested the sections become uncodified law.
The new language was added in both sections and focused on
clarifying what was considered "gross negligence" for a
licensee, business, and employee. She noted that Section 16
was unchanged from the previous version of the bill. She
continued to address the Explanation of Changes:
Section 17: Repeals sections of SB 241
(Page 13, line 22-26)
Changes date on page 13, line 23 from September 30 to
December 31
Ms. Shine explained that Section 18 was a conforming change
to other Section numbers as changed in the CS. She
addressed further changes proposed in the CS via the
Explanation of Changes:
Section 19: Repeal Section
(Page 13, line 31 Page 14, line 5)
Adds Sections 3 (Emergency Powers of the Governor),
and 13 (Civil Liability Immunity) to the repeal date
of December 31, 2021.
Adds Sections 4 (Emergency Powers of the Commissioner
of the Department of Health and Social Services), 14
(Licensee Liability for Client Exposure to COVID-19),
and 15 (Business and Employee Liability for Customer
Exposure to COVID-19) to the repeal date of June 30,
2023.
Section 20: Retroactivity
(Page 14, lines 6-10)
Added Section 11 (Workers' Compensation Presumption of
Compensability) to retroactive date of November 15,
2020.
Ms. Shine noted that Section 21 provided an immediate
effective date and had no change. She addressed bill
sections that had been removed:
Sections Removed
? Fingerprinting
? Meetings of Shareholders
? Informed Consent for COVID-19 Vaccines
? Personal Objection to the Administration of Vaccines
CARES, CRSSA, ARPA Funds cannot be used for
abortions.
All other changes are technical or conforming.
Ms. Shine highlighted that Section 15 relating to abortions
was already a provision in federal law, which barred the
use of federal funds to pay for abortion. The federal funds
that would be provided to Alaska to respond to COVID-19 had
stringent guidelines and she did not believe the funds
could be used for abortion.
9:23:28 AM
Senator Wilson had a list of questions.
Co-Chair Bishop asked him to proceed but cautioned he might
call on other members.
Senator Wilson asked about abortion funding. He understood
that new American Recovery and Reinvestment Act (ARRA)
funds would allow for program operation items that could
include abortion funding, which he thought was not
prohibited in the guidance for the funds.
Ms. Shine noted that the state had not yet received
guidance for ARRA funds coming into the state, and she
believed the appropriation would come under the purview of
the legislature. She referenced the Hyde Amendment, which
prohibited the use of federal funds for abortion.
Senator Wilson referenced abortion funding and understood
that the new American Recovery and Reinvestment Act (ARRA)
funding did not specifically prohibit the funding of
abortions. He asked for clarification.
Ms. Shine explained that the state had not seen guidance on
use of federal ARRA and American Rescue Plan Act (ARPA)
funds yet. She thought the appropriation of the funds would
be under the purview of the legislature. She referenced the
Hyde Amendment, which prohibited the use of federal funds
for abortion. If the federal guidelines did not prohibit
the use of the funds as such, it would be under the purview
of the legislature to restrict the use of the funds.
Senator Wilson discussed removal of the Revised Program
Legislation (RPL) Process as listed in Section 12. He
understood that some federal funds came to DHSS on a
monthly basis, such as Centers for Disease Control funds
and others. He asked if the legislature would have to
appropriate the funds each time they were received.
Ms. Shine stated that the funds for appropriation would be
an increased federal funding level. She thought the
director of the Office of Management and Budget could
address the matter.
Co-Chair Bishop asked if Senator Wilson wanted the director
to address the federal funds.
Senator Wilson answered in the affirmative.
9:26:02 AM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, understood that the language in
Section 12 of the CS intended to limit the use of the
appropriation in HB 205 (granting access to the RPL
process) through the program execution statute. He echoed
Ms. Shine's remarks that indicated that the funds in
question were items increasing from an existing
appropriation. Federal appropriations that currently
existed at DHSS would not be further restricted, and the
funds would be considered increases to federal receipts. He
clarified that the section represented a reduction in the
appropriation made in HB 205 that allowed access to any
federal funds through the program execution statute.
Senator Wilson asked if the state expected to get an
expansion of the federal funds. He asked Mr. Steininger
which programs would be increased, and what happened after
the initial funding.
Mr. Steininger stated there were multiple programs within
DHSS that would receive additional funding through ARPA,
that would require additional appropriations, either
through an appropriation bill or through the revised
program process if the legislature did not make
appropriation actions. There were other smaller grants to
other agencies that may not be known. He noted that the
previous summer there had been several grants not initially
known when the CARES Act was released, and the funds had to
be accommodated through the RPL process. He used the
example of grants through the Community Development Block
Grant Program, grants through the National Endowment for
the Arts, and grants to housing relief programs; which had
needed flexibility to expeditiously deploy the funds in the
state.
Senator Wilson was concerned about Section 12, and he
understood the legislature had been concerned about the
governor doing monthly renewals of the declaration. He was
concerned the governor would have to call a monthly special
session to allocate funds that could come on a monthly
basis.
9:29:11 AM
Co-Chair Stedman gave some background on the issue. He
thought the legislature was faced with the issue of having
over $1 billion coming to the state between June and
January. He knew that the federal government was talking
about significant financial support for the country, but
the specifics were not known. He emphasized that the
legislature was the appropriating body, and if there were
not enough members that were willing to come to Juneau and
deal with appropriations, the funds would go through the
RPL process, through which the funds could be automatically
received by the governor while excluding the legislature
from the appropriation process. There was concern that
there was a significant number of legislators that did not
want to come to the capitol for a special session. He
referenced the previous summer and fall.
Co-Chair Stedman continued his remarks. He thought to
alleviate the concern of the legislature not being convened
by special session, there needed to be restrictions on the
RPL process to ensure that if the legislature would not
come back into session to deal with $1 billion or more in
funds it would put the state in a position to encourage the
governor to call a special session. He emphasized the
significance of the issue and affirmed that the proposal
was not to hinder the Legislative Budget and Audit
Committee. He thought the committee could work with the
Legislative Legal Services to refine the language and
minimize the issue mentioned by Senator Wilson relating to
needing monthly appropriation.
Co-Chair Stedman emphasized that there were members that
would not be present to appropriate funds, and he thought
the matter was reflected in the actions of the previous 12
months. He emphasized the necessity to address the issue
and ensure the appropriating body had the ability to have
public discussion and do the duty of allocating the federal
funds. He thought there should be ample encouragement for
the executive branch to call the legislature into special
session to deal with billions of dollars that would be on
the table.
9:33:36 AM
Senator Hoffman also had concerns about Section 12 and
understood Co-Chair Stedman concerns on the issue. He
referenced the Senate's passage of a provision to allow for
virtual meetings, which would alleviate many of his
concerns. The provision had not been passed by the House.
He thought the huge amount of funds might require the
legislature to treat the funds differently. He would feel
much more comfortable with Section 12 if the other body
passed a bill allowing for virtual meetings during the
pandemic. He understood that people had lives outside of
the legislative session of 121 days, and knew people made
plans accordingly. He echoed Co-Chair Stedman's sentiment
that it was difficult to get the necessary votes to convene
a special session to address items. He thought the section
needed deliberation by the committee and should be treated
accordingly.
9:35:59 AM
Co-Chair Stedman clarified that as the legislature went
through the LBA process with the RPL, the decisions must be
accepted without an ability to make changes. He was
concerned that the RPL process would take the legislature
out of decision-making regarding the funds. He thought that
Senator Hoffman had made a good point in that the committee
should deliberate on the matter and perhaps refine the
language.
Co-Chair Bishop added that the previous spring there had
been a legal challenge after completion of the LBA process
and the legislature had to return to Juneau affirm the
action taken.
Senator Wilson was concerned with Section 11, regarding
workers compensation. He was worried that the provision was
not all-inclusive and questioned whether the language was
needed. He thought the language left out front-line workers
and some correctional officers. He mentioned a COVID-19
outbreak amongst correctional officers in his district. He
thought the language was restrictive, as it gave some
individuals a higher level of protection that should be
available for everyone.
Co-Chair Stedman thought there was a person online from the
Legislative Legal division and wondered if it would be
appropriate to hear testimony regarding Section 12.
9:39:30 AM
MEGAN WALLACE, DIRECTOR, LEGISLATIVE LEGAL SERVICES, ALASKA
STATE LEGISLATURE (via teleconference), commented that the
current language in Section 12 of the CS would restrict the
governor from utilizing the RPL process based on the
additional federal receipts enumerated in the section. She
noted that there were additional federal receipts that came
from the federal government that did not relate to the
American Jobs Plan, COVID-19, or economic recovery. The
language was not intended to restrict all RPLs during the
interim, but rather just those that were for federal
receipts listed in the section.
Ms. Wallace referenced an earlier question from Senator
Wilson regarding the powers of the DHSS commissioner. She
clarified that the bill extended the disaster, so the state
would be back under a disaster emergency under AS
26.23.020. When the state was under a disaster emergency
DHSS had certain powers under AS 18.15.390, which allowed
for the commissioner to restrict, regulate, and ration
things like medicines. The commissioner would retain some
powers under the bill that were not directly related to the
powers of the governor under AS 26.23.020 (g) which were
specifically enumerated in the bill. TO the extent that
there was any desire to limit the powers of the
commissioner under Title 18, she thought the committee
might want to look at the powers to consider if it was
consistent with the committee's intent.
9:43:00 AM
Senator Wielechowski asked if there had been a legal
challenge to the RPL process, questioning whether or not it
was constitutional.
Ms. Wallace answered "yes." When the RPL statutes were
initially enacted by the legislature, the statutes were
challenged in court and struck down with a holding that the
legislature had delegated too much power to a singular
committee (LBA) to authorize and approve appropriations
above and beyond what the full body had provided for. After
the litigation the state ended up with the current
statutory language in AS 37.07.080 (h). There was also a
legal challenge to the RPL process being able to accept and
expend the CARES Act funds. When the legislature came back
into session and ratified the actions of the governor and
the LBA committee with respect to the CARES Act RPLs, the
litigation ended.
Senator Wielechowski questioned whether the existing RPL
process was constitutional. He asked whether there had been
court decision on the matter.
Ms. Wallace answered in the negative. The current RPL
process had not come before the court.
Senator Wilson wondered if the DHSS commissioner was
available to comment on Section 2 through Section 5 and the
retroactivity and repeal sections, to make sure the CS met
the needs of the department.
9:45:31 AM
ADAM CRUM, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES (via teleconference), considered Section 3,
relating to emergency powers. He asserted that the
department was in a vastly different position than it had
been one year previously. He asserted that the department
had used tools necessary to set up a widespread response
included testing and vaccination. He did not think the
facts and science related to COVID-19 supported the
disaster declaration. He looked at Section 4, and the
emergency powers of the commissioner, and thought the
section had similar language to that in the state of
Michigan. He thought other states had various tiers of
response in order to have targeted responses to the health
emergency.
Commissioner Crum continued his remarks. He thought Section
4 was a good step in updating public health laws. He
thought it would be helpful to amend the section to support
the allocation and distribution of vaccines and
therapeutics, as well as allow for use of emergency
procurement procedures to support the state's response. He
also thought the section should be amended to allow the
commissioner to end the public health emergency, or for the
emergency to end when the federal public health emergency
expired.
9:48:10 AM
AT EASE
9:49:55 AM
RECONVENED
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. The CS for CSHB
76(FIN) was ADOPTED.
CSHB 76(FIN) am was HEARD and HELD in committee for further
consideration.
Co-Chair Bishop relayed that proposed amendments were due
by 5 o'clock p.m. The afternoon meeting was cancelled.
ADJOURNMENT
9:50:25 AM
The meeting was adjourned at 9:50 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 76 Explanation of Changes ver W.A to E.pdf |
SFIN 4/12/2021 9:00:00 AM |
HB 76 |
| HB 76 Sectional Analysis ver E.pdf |
SFIN 4/12/2021 9:00:00 AM |
HB 76 |
| HB 76 ver. E.pdf |
SFIN 4/12/2021 9:00:00 AM |
HB 76 |
| 031221 1 APPROVED RAP 2020-0200-4353 SS DOA OMB Collins Alliance.pdf |
SFIN 4/12/2021 9:00:00 AM |
Collins Alliance Contract |
| 031221 3 Tandem Motion Workforce Consulting Experience.pdf |
SFIN 4/12/2021 9:00:00 AM |
Collins Alliance Contract |
| 031221 2 SIGNED 2020-0200-4353 Collins Alliance Amendment ONE.pdf |
SFIN 4/12/2021 9:00:00 AM |
Collins Alliance Contract |
| 031221 DOA Budget Response (S)FIN 3-12-21 Hearing 4.22.21.pdf |
SFIN 4/12/2021 9:00:00 AM |
Collins Alliance Contract |