05/14/2021 01:00 PM Senate FINANCE

                 SENATE FINANCE COMMITTEE                                                                                       
                       May 14, 2021                                                                                             
                         2:07 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
2:07:54 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Bishop called the Senate Finance Committee meeting                                                                     
to order at 2:07 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Donny Olson (via teleconference)                                                                                        
Senator Natasha von Imhof                                                                                                       
Senator Bill Wielechowski (via teleconference)                                                                                  
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Adam Wool,  Sponsor; Ashley  Carrick, Staff,                                                                    
Representative  Wool;  Erin   Shine,  Staff,  Senator  Click                                                                    
Bishop;  Kris Curtis,  Legislative Auditor,  Alaska Division                                                                    
of  Legislative Audit;  Representative  Dan Ortiz,  Sponsor;                                                                    
Caroline Hamp, Staff, Representative Dan Ortiz.                                                                                 
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Bethel Belisle, Chair, Board of Certified Midwives,                                                                             
Anchorage.                                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSHB 41(FIN)                                                                                                                    
          SHELLFISH PROJECTS; HATCHERIES; FEES                                                                                  
                                                                                                                                
          CSHB 41(FIN) was SCHEDULED but not HEARD.                                                                             
                                                                                                                                
HB 100    EXTEND WORKFORCE INVEST BOARD ALLOCATIONS                                                                             
                                                                                                                                
          HB 100 was REPORTED out of committee with a "do                                                                       
          pass" recommendation and one previously published                                                                     
          fiscal note; FN 1(EED).                                                                                               
                                                                                                                                
HB 117    EXTEND BOARD OF DIRECT-ENTRY MIDWIVES                                                                                 
                                                                                                                                
          HB 117 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HOUSE BILL NO. 100                                                                                                            
                                                                                                                                
     "An Act relating to allocations of funding for the                                                                         
     Alaska Workforce Investment Board; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
2:09:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ADAM WOOL, SPONSOR, introduced himself.                                                                          
                                                                                                                                
ASHLEY  CARRICK,  STAFF,   REPRESENTATIVE  WOOL,  introduced                                                                    
herself.                                                                                                                        
                                                                                                                                
Representative  Wool   explained  that  the  bill   was  the                                                                    
Technical     Vocational     Education    Program     (TVEP)                                                                    
reauthorization. The  bill took  a percentage of  the Alaska                                                                    
Workforce  Investment fund,  and  distributed it  throughout                                                                    
the  state, with  the University  of Alaska  (UA) being  the                                                                    
largest  recipient of  the funds  at 45  percent. He  stated                                                                    
that nine  other recipients received  between two  and seven                                                                    
percent,  which  was  an  approximate  distribution  of  $12                                                                    
million.                                                                                                                        
                                                                                                                                
Senator Wilson MOVED Amendment 1 (copy on file).                                                                                
                                                                                                                                
Co-Chair Bishop OBJECTED for discussion.                                                                                        
                                                                                                                                
Senator Wilson explained that the  amendment would take a 10                                                                    
percent reduction to  the formula in UA  and redistribute it                                                                    
to the remaining TVEP recipients.                                                                                               
                                                                                                                                
Co-Chair Stedman expressed concern  about the amendment, and                                                                    
also expressed  concern about the  bill. He stated  that his                                                                    
region's allocation  came from the university.  He felt that                                                                    
his region  was underrepresented, although he  supported the                                                                    
passage  of the  bill.  He  felt that  the  issue should  be                                                                    
reviewed periodically to ensure that  it was fair and in the                                                                    
best  interest  of  the  entire   state.  He  remarked  that                                                                    
adopting the  amendment would further heighten  the issue of                                                                    
some  areas  of  the state  having  underrepresentation.  He                                                                    
opposed the amendment.                                                                                                          
                                                                                                                                
Senator   von   Imhof   remarked  that   there   should   be                                                                    
conversations around  whether or  not the  university system                                                                    
should be  more focused on workforce  development or whether                                                                    
it should be more  participatory with other organizations to                                                                    
provide   workforce  development.   She  worried   that  the                                                                    
amendment would  have unintended consequences,  because some                                                                    
programs  would  not  have  those  relied  upon  funds.  She                                                                    
invited the  amendment drafter to  address the subject  at a                                                                    
later date to engage in a robust conversation.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Olson, Wilson                                                                                                         
OPPOSED: Von Imhof, Wielechowski, Bishop, Stedman                                                                               
                                                                                                                                
Senator Hoffman was absent from the vote.                                                                                       
                                                                                                                                
The motion FAILED (2/4).                                                                                                        
                                                                                                                                
2:15:09 PM                                                                                                                    
                                                                                                                                
Senator Olson  wondered whether he could  offer a conceptual                                                                    
amendment.                                                                                                                      
                                                                                                                                
Co-Chair  Bishop  queried  the   length  of  the  conceptual                                                                    
amendment.                                                                                                                      
                                                                                                                                
Senator Olson felt  that the sunset could be  adjusted to be                                                                    
reviewed every ten years.                                                                                                       
                                                                                                                                
Co-Chair  Bishop felt  that the  discussion should  continue                                                                    
before the offering of the conceptual amendment.                                                                                
                                                                                                                                
2:16:03 PM                                                                                                                    
                                                                                                                                
ERIN  SHINE,  STAFF,  SENATOR CLICK  BISHOP,  discussed  the                                                                    
Letter of Intent (copy on  file). She stated that the letter                                                                    
would state that  it was the intent of  the legislature that                                                                    
the Department  of Education  and Early  Development (DEED),                                                                    
Department of Labor and Workforce  Development (DOL), and UA                                                                    
cooperate  with a  special audit  to be  requested a  future                                                                    
Legislative Budget  and Audit  (LB and  A). She  stated that                                                                    
the  conversation  around  the  amendment  highlighted  some                                                                    
questions  around  the  funding   and  participants  in  the                                                                    
program.                                                                                                                        
                                                                                                                                
Co-Chair Bishop wondered whether Ms. Shine was accurate.                                                                        
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, replied in the affirmative.                                                                                  
                                                                                                                                
Co-Chair  Stedman stated  that  he supported  the Letter  of                                                                    
Intent,  and that  it helped  address his  concern with  the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair Bishop agreed with Co-Chair Stedman.                                                                                   
                                                                                                                                
Senator Olson queried the purpose of the audit.                                                                                 
                                                                                                                                
Ms. Shine  replied that special  audit would be  designed in                                                                    
conjunction with the Legislative  Budget and Audit Chair and                                                                    
Ms. Curtis in  outlining some of the criteria  to be brought                                                                    
to that committee for consideration.                                                                                            
                                                                                                                                
Senator  von  Imhof pointed  to  the  Governor's request  in                                                                    
Fiscal  Note 1.  She remarked  that there  was a  request of                                                                    
$490,000.                                                                                                                       
                                                                                                                                
Co-Chair Bishop highlighted the fiscal note.                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to REPORT  HB  100 with  individual                                                                    
recommendations and attached fiscal note.                                                                                       
                                                                                                                                
2:25:56 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:26:05 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:26:08 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  added to  move the  Letter of  Intent with                                                                    
the bill                                                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB  100 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
note: FN 1 (EED).                                                                                                               
                                                                                                                                
2:26:26 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:26:46 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 41(FIN)                                                                                                 
                                                                                                                                
     "An Act  relating to management  of enhanced  stocks of                                                                    
     shellfish; authorizing  certain nonprofit organizations                                                                    
     to engage  in shellfish enhancement  projects; relating                                                                    
     to  application fees  for salmon  hatchery permits  and                                                                    
     shellfish enhancement project  permits; relating to the                                                                    
     marketing  of  aquatic  farm  products  by  the  Alaska                                                                    
     Seafood  Marketing  Institute;  and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
CSHB 41(FIN) was SCHEDULED but not HEARD.                                                                                       
                                                                                                                                
2:26:46 PM                                                                                                                    
                                                                                                                                
Co-Chair Bishop stated that HB 41 would be set aside.                                                                           
                                                                                                                                
HOUSE BILL NO. 117                                                                                                            
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Certified Direct-Entry  Midwives; and providing  for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
2:27:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAN ORTIZ, SPONSOR, introduced himself.                                                                          
                                                                                                                                
CAROLINE HAMP,  STAFF, REPRESENTATIVE DAN  ORTIZ, introduced                                                                    
herself.                                                                                                                        
                                                                                                                                
Representative Ortiz stated that  the bill renewed the Board                                                                    
of Certified Direct-Entry Midwives.                                                                                             
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, discussed the  sunset audit of the board.                                                                    
She  remarked that,  overall, the  audit concluded  that the                                                                    
board  served the  public interest  by  holding meetings  in                                                                    
accordance  with state  laws and  by effectively  certifying                                                                    
midwives. The  board adopted regulatory changes  to improved                                                                    
the profession,  however it failed  to pursue  the statutory                                                                    
changes due  to concerns  over related  costs. Additionally,                                                                    
the  audit  found  that  the peer  review  process  was  not                                                                    
effectively monitored.                                                                                                          
                                                                                                                                
Co-Chair Bishop OPENED public testimony.                                                                                        
                                                                                                                                
Senator Wilson queried the percentage  of mortality rates of                                                                    
children born to midwives.                                                                                                      
                                                                                                                                
2:35:37 PM                                                                                                                    
                                                                                                                                
BETHEL   BELISLE,  CHAIR,   BOARD  OF   CERTIFIED  MIDWIVES,                                                                    
ANCHORAGE (via teleconference), replied  that there was less                                                                    
than  the national  standard of  mortality and  morbidity in                                                                    
the  state at  potentially less  than one  demise every  few                                                                    
years.                                                                                                                          
                                                                                                                                
Senator  Wilson  recalled  some concern  about  whether  the                                                                    
board  needed additional  medical  supervision. He  wondered                                                                    
about those concerns.                                                                                                           
                                                                                                                                
Ms.  Belisle  replied  that  the   board  was  a  standalone                                                                    
profession. She  recalled that  the statutory  changes would                                                                    
allow for  even more  ability to  be a  standalone practice.                                                                    
She remarked  that many  practices in  the recent  year were                                                                    
working  toward arrangements  with  local medical  providers                                                                    
and   hospital   systems   for  better   collaboration   and                                                                    
accountability.                                                                                                                 
                                                                                                                                
Senator  von  Imhof  remarked  that   the  response  to  the                                                                    
recommendation about the  board pursuing regulatory changes,                                                                    
the board  changed the  education requirement.  She wondered                                                                    
whether  the change  in  education had  been  in place,  and                                                                    
whether there had been a change in behavior.                                                                                    
                                                                                                                                
Ms. Belisle  replied that the  change did  not retroactively                                                                    
apply to  the midwives. She  remarked that it  had increased                                                                    
accountability.                                                                                                                 
                                                                                                                                
Co-Chair Bishop CLOSED public testimony.                                                                                        
                                                                                                                                
2:40:39 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:41:17 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Bishop thanked Ms. Holtkamp (secretary) for her                                                                        
service and hoped that she would have a successful birth.                                                                       
                                                                                                                                
HB 117 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
2:42:57 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:42 p.m.