Legislature(2021 - 2022)SENATE FINANCE 532

04/05/2022 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 173 DENTIST SPEC. LICENSE/RADIOLOGIC EQUIP TELECONFERENCED
Moved CSSB 173(FIN) Out of Committee
+= SB 193 EXTEND BOARD OF CHIROPRACTIC EXAMINERS TELECONFERENCED
Moved CSSB 193(FIN) Out of Committee
+= SB 204 HUNTING PERMIT/TAG AUCTIONS/RAFFLES TELECONFERENCED
Moved CSSB 204(RES) Out of Committee
+= HB 85 FINANCIAL INSTITUTIONS; LIABILITY TELECONFERENCED
Moved SCS CSHB 85(L&C) Out of Committee
+= SB 98 ADULT FOSTER CARE FOR DISABLED TELECONFERENCED
Heard & Held
+= SB 199 PERM FUND; PERMANENT FUND DIVIDEND TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 5, 2022                                                                                            
                         9:03 a.m.                                                                                              
                                                                                                                                
9:03:25 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Bishop called the  Senate Finance Committee meeting                                                                    
to order at 9:03 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; Emma  Torkelson,                                                                    
Staff,  Senator  Josh   Revak;  Representative  Bart  LeBon,                                                                    
Sponsor.                                                                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
John   Lee,  Director,   Senior  and   Disability  Services,                                                                    
Department of  Health and  Social Services;  Anthony Newman,                                                                    
Deputy Director, Senior  and Disability Services, Department                                                                    
of  Health and  Social Services;  Lizette Stiehr,  Executive                                                                    
Director,     Alaska    Association     for    Developmental                                                                    
Disabilities,  Chugiak; Michele  Girault, Board  Resident of                                                                    
Key  Coalition   and  Executive  Director,   Hope  Community                                                                    
Resources,   Anchorage;  Craig   Baxter,  Program   Manager,                                                                    
Residential  Licensing,   Division  of   Behavioral  Health,                                                                    
Department of Health and Social Services.                                                                                       
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 98     ADULT FOSTER CARE FOR DISABLED                                                                                        
                                                                                                                                
          SB 98 was HEARD and  HELD in committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
SB 173    DENTIST SPEC. LICENSE/RADIOLOGIC EQUIP                                                                                
                                                                                                                                
          CSSB 173(FIN)  was REPORTED out of  committee with                                                                    
          four "do pass" recommendations  and with three "no                                                                    
          recommendation"  recommendations,  and with  three                                                                    
          previously  published  fiscal   impact  notes:  FN                                                                    
          1(DHS), FN 2(DHS), and FN 3(CED).                                                                                     
                                                                                                                                
SB 193    EXTEND BOARD OF CHIROPRACTIC EXAMINERS                                                                                
                                                                                                                                
          CSSB 193(FIN)  was REPORTED out of  committee with                                                                    
          five "do  pass" recommendations  and with  two "no                                                                    
          recommendation" recommendations, and  with one new                                                                    
          fiscal   impact  note   from  the   Department  of                                                                    
          Commerce, Community and Economic Development.                                                                         
                                                                                                                                
SB 199    PERM FUND; PERMANENT FUND DIVIDEND                                                                                    
                                                                                                                                
          SB  199  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
SB 204    HUNTING PERMIT/TAG AUCTIONS/RAFFLES                                                                                   
                                                                                                                                
          CSSB 204(RES)  was REPORTED out of  committee with                                                                    
          five "do  pass" recommendations  and with  two "no                                                                    
          recommendation"  recommendations,   and  with  one                                                                    
          previously  published  indeterminate fiscal  note:                                                                    
          FN 1(DFG).                                                                                                            
                                                                                                                                
CSHB 85(L&C)                                                                                                                    
          FINANCIAL INSTITUTIONS; LIABILITY                                                                                     
                                                                                                                                
          SCS  CSHB 85(L&C)  was REPORTED  out of  committee                                                                    
          with  four  "do  pass"  recommendations  and  with                                                                    
          three  "no  recommendation"  recommendations,  and                                                                    
          with  three   previously  published   zero  fiscal                                                                    
          notes: FN 5(DEC), FN 6(CED), and FN 7(CED).                                                                           
                                                                                                                                
SENATE BILL NO. 173                                                                                                           
                                                                                                                                
     "An Act relating to the practice of dentistry;                                                                             
     relating to dental radiological equipment; and                                                                             
     providing for an effective date."                                                                                          
                                                                                                                                
9:04:43 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  relayed that it  was the third  hearing for                                                                    
SB  173, and  the  committee had  opened  and closed  public                                                                    
testimony on  February 24,  2022. The  committees  intention                                                                    
was  to  hear  a  brief bill  reintroduction,  cover  fiscal                                                                    
notes, and look to the will of the committee.                                                                                   
                                                                                                                                
Senator  Wilson,  Sponsor,  explained   that  SB  173  would                                                                    
transfer  the inspection  of  dental radiological  equipment                                                                    
from  the Board  of Dental  Examiners to  the Department  of                                                                    
Health and  Social Services and would  establish a specialty                                                                    
license.                                                                                                                        
                                                                                                                                
Senator Wilson  discussed the fiscal notes.  He addressed FN                                                                    
1 from the Department of Health.  In FY 23 there was a total                                                                    
of $95,000  with $92,500 in outgoing  years. The legislation                                                                    
was  expected  to  have  an   impact  on  Medicaid  provider                                                                    
enrollment. The  additional scope  could not be  absorbed by                                                                    
the current staff and the  fiscal note reflected an increase                                                                    
of  one permanent  part-time Medicaid  Program Specialist  2                                                                    
position, located in Anchorage.                                                                                                 
                                                                                                                                
Co-Chair Bishop  addressed FN 1.  He thought the  $95,000 in                                                                    
FY  23 as  well as  the cost  in outgoing  years would  be a                                                                    
split between  Undesignated General Funds (UGF)  and federal                                                                    
funds.                                                                                                                          
                                                                                                                                
Senator  Wilson  clarified  that   the  fiscal  note  showed                                                                    
$47,500  federal receipts  and $47,500  in matching  UGF. In                                                                    
outgoing years, the funding amount would also be split.                                                                         
                                                                                                                                
Senator  Wilson  addressed  FN  2  from  the  Department  of                                                                    
Health, OMB Component 2252. The  note showed operating costs                                                                    
of $193,200 with $224,200 in  outgoing years. The bill would                                                                    
transfer   the   responsibilities    of   registration   and                                                                    
certification of dental radiological  devices from the board                                                                    
to the  department effective July  1, 2023. The  funds would                                                                    
allow the department media to promulgate the regulations.                                                                       
                                                                                                                                
Senator  Wilson  MOVED  to  report   CSSB  173(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 173(FIN)  was REPORTED out  of committee with  four "do                                                                    
pass"  recommendations and  with  three "no  recommendation"                                                                    
recommendations, and with  three previously published fiscal                                                                    
impact notes: FN 1(DHS), FN 2(DHS), and FN 3(CED).                                                                              
                                                                                                                                
9:08:02 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:09:29 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 193                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Chiropractic Examiners; and providing for an effective                                                                     
     date."                                                                                                                     
                                                                                                                                
9:09:32 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop explained that it  was the second hearing of                                                                    
SB 193. He relayed that  the committee had opened and closed                                                                    
public  testimony   on  March  30,  2022.   The  committees                                                                     
intention was  to consider  a proposed  Committee Substitute                                                                    
(CS), cover  the fiscal note,  and look  to the will  of the                                                                    
committee.                                                                                                                      
                                                                                                                                
Co-Chair   Stedman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for SB  193,  Work  Draft 32-LS1486\G  (Ambrose,                                                                    
3/30/22).                                                                                                                       
                                                                                                                                
Co-Chair Bishop OBJECTED for discussion.                                                                                        
                                                                                                                                
9:10:09 AM                                                                                                                    
                                                                                                                                
ERIN  SHINE,  STAFF,  SENATOR CLICK  BISHOP,  discussed  one                                                                    
change to the  bill, which was found on page  1, line 6. The                                                                    
proposed change  amended the  sunset date  for the  Board of                                                                    
Chiropractic  Examiners  from June  30,  2024,  to June  30,                                                                    
2027. The  date coincided  with the recommendation  from the                                                                    
legislative auditor.                                                                                                            
                                                                                                                                
Co-Chair  Bishop  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
Senator Olson asked  for the reason the earlier  date had in                                                                    
place.                                                                                                                          
                                                                                                                                
Ms.  Shine  relayed  that  the  Senate  Labor  and  Commerce                                                                    
Committee had  added the date.  She continued that  the bill                                                                    
that  was  introduced  had  a  five-year  sunset  date,  and                                                                    
previous committee had recommended  the two-year sunset. She                                                                    
thought there had been some concerns related to licensing.                                                                      
                                                                                                                                
Senator  Wilson  discussed  a   new  fiscal  note  from  the                                                                    
Department of Commerce,  Community and Economic Development,                                                                    
OMB Component 2360. He detailed that  FY 23 and FY 24 showed                                                                    
a total  of $21,800 in  Designated General Funds  (DGF) from                                                                    
license fees. The funds would  allow for the continuation of                                                                    
board travel and capabilities.                                                                                                  
                                                                                                                                
Co-Chair  Stedman  MOVED  to report  CSSB  193(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 193(FIN)  was REPORTED out  of committee with  five "do                                                                    
pass"  recommendations  and  with  two  "no  recommendation"                                                                    
recommendations, and  with one new  fiscal impact  note from                                                                    
the   Department  of   Commerce,   Community  and   Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
9:12:20 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:14:09 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 204                                                                                                           
                                                                                                                                
     "An Act relating to auctions or raffles for hunting                                                                        
     harvest permits and big game tags; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
Co-Chair Bishop relayed  that it was the  second hearing for                                                                    
SB  204.  The committee  had  previously  opened and  closed                                                                    
public  testimony   and  intended  to  hear   a  quick  bill                                                                    
reintroduction.                                                                                                                 
                                                                                                                                
9:14:38 AM                                                                                                                    
                                                                                                                                
EMMA TORKELSON,  STAFF, SENATOR  JOSH REVAK,  explained that                                                                    
the  bill  proposed  to   moderately  increase  the  harvest                                                                    
permits  available  for  auction   and  raffle  to  leverage                                                                    
additional   Pittman-Robertson  funds,   and  to   give  the                                                                    
Department  of  Fish  and  Game  and  Alaska  charities  the                                                                    
ability  to better  contribute  to  wildlife protection  and                                                                    
conservation programs around the state.                                                                                         
                                                                                                                                
Senator  Wilson  addressed  FN  1,  a  previously  published                                                                    
indeterminate fiscal  note from  the Department of  Fish and                                                                    
Game, OMB  Component 473. The  changes would not  burden the                                                                    
department, but  future revenues were expected  to fluctuate                                                                    
from year to year therefore  the department submitted a zero                                                                    
fiscal note with indeterminate revenue.                                                                                         
                                                                                                                                
Senator von Imhof made a motion.                                                                                                
                                                                                                                                
9:16:00 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:16:38 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator von Imhof wanted to  make a clarification related to                                                                    
the motion.                                                                                                                     
                                                                                                                                
9:17:02 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:17:23 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator  von Imhof  explained that  she had  mistakenly read                                                                    
the wrong bill  number. She wanted to restate  the motion to                                                                    
report CSSB 204(RES) out of committee.                                                                                          
                                                                                                                                
Senator  von Imhof  MOVED  to report  CSSB  204(RES) out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 204(RES)  was REPORTED out  of committee with  five "do                                                                    
pass"  recommendations  and  with  two  "no  recommendation"                                                                    
recommendations,   and   with   one   previously   published                                                                    
indeterminate fiscal note: FN 1(DFG).                                                                                           
                                                                                                                                
9:17:57 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:19:53 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 85(L&C)                                                                                                 
                                                                                                                                
     "An Act  relating to the Alaska  Banking Code; relating                                                                    
     to mutual  savings banks; relating to  interstate state                                                                    
     banks   and  international   banks;  relating   to  the                                                                    
     pledging  of  bank  assets as  collateral  security  to                                                                    
     tribal organizations; relating to  the pledging of bank                                                                    
     assets for interest swap  agreements; relating to state                                                                    
     business licenses;  relating to persons who  make loans                                                                    
     secured   by  interests   in  vessels   or  facilities;                                                                    
     relating  to liability  for the  release or  threatened                                                                    
     release of hazardous substances;  relating to the Model                                                                    
     Foreign Bank  Loan Act; and providing  for an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:19:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  shared that it  was the second  hearing for                                                                    
HB  85.  The  committee  had previously  opened  and  closed                                                                    
public  testimony   and  intended  to  hear   a  quick  bill                                                                    
reintroduction and look to the will of the committee.                                                                           
                                                                                                                                
9:20:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BART  LEBON, SPONSOR,  spoke to the  bill. He                                                                    
explained that  the bill proposed to  update several aspects                                                                    
of  Alaskas  outdated  banking statutes  found in  Title VI.                                                                    
The  bill  would  broadly bring  regulatory  parity  between                                                                    
national charter banks and state  charter banks and increase                                                                    
regulatory  efficiency.  The bill  had  the  support of  the                                                                    
Alaska   Bankers   Association   and   was   introduced   in                                                                    
collaboration with  the Division of Banking  and Securities.                                                                    
He referenced  a memo  to the  co-chairs dated  February 16,                                                                    
2022, in response the committees   questions (copy on file).                                                                    
He  noted  that  there  was   invited  testimony  and  staff                                                                    
available to answer questions.                                                                                                  
                                                                                                                                
Co-Chair Bishop  addressed a  zero fiscal  note (FN  5) from                                                                    
the Department of  Environmental Conservation, OMB Component                                                                    
3094. He read from the summary on page 2:                                                                                       
                                                                                                                                
     It is  unclear how many current  or future contaminated                                                                    
     sites  may  have  no  other party  able  to  cover  the                                                                    
     department's   costs   of  overseeing   or   conducting                                                                    
     response or remediation.                                                                                                   
                                                                                                                                
Co-Chair Bishop spoke to a zero  fiscal note (FN 6) from the                                                                    
Department of Commerce,  Community and Economic Development,                                                                    
OMB Component 2808. He read from the fiscal note analysis:                                                                      
                                                                                                                                
     HB  85 adjusts  statutory  requirements  for state  and                                                                    
     mutual savings  banks to modernize the  state's banking                                                                    
     laws.                                                                                                                      
                                                                                                                                
     Changes to  regulations will be  required, but  will be                                                                    
     combined with planned regulations projects.                                                                                
                                                                                                                                
Co-Chair Bishop  addressed a  zero fiscal  note (FN  7) from                                                                    
Department of Commerce,  Community and Economic Development,                                                                    
OMB Component 2360. The note  indicated that the Division of                                                                    
Corporations,  Business  and Professional  Licensing  (CBPL)                                                                    
did not expect fiscal impact from the legislation.                                                                              
                                                                                                                                
Co-Chair Stedman  MOVED to  report SCS  CSHB 85(L&C)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB  85(L&C) was  REPORTED out  of committee  with four                                                                    
"do    pass"   recommendations    and    with   three    "no                                                                    
recommendation" recommendations,  and with  three previously                                                                    
published zero  fiscal notes: FN  5(DEC), FN 6(CED),  and FN                                                                    
7(CED).                                                                                                                         
                                                                                                                                
9:23:46 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:24:59 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 98                                                                                                            
                                                                                                                                
     "An Act  relating to medical assistance  for recipients                                                                    
     of adult  foster care  services; establishing  an adult                                                                    
     foster care home license  and procedures; and providing                                                                    
     for the transition of individuals from foster care to                                                                      
     adult foster care homes."                                                                                                  
                                                                                                                                
9:25:04 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop relayed that it  was the first hearing of SB
98 during the  current session. The committee  had heard the                                                                    
bill and had opened and  closed public testimony on April 7,                                                                    
2021. The  committees  attention was to  consider a proposed                                                                    
CS,  hear  a bill  reintroduction,  and  then set  the  bill                                                                    
aside.                                                                                                                          
                                                                                                                                
Co-Chair   Stedman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for  SB  98,   Work  Draft  32-GS1708\G  (Foote,                                                                    
4/2/22).                                                                                                                        
                                                                                                                                
Co-Chair Bishop OBJECTED for discussion.                                                                                        
                                                                                                                                
Ms. Shine  addressed explained that  the proposed CS  took a                                                                    
slightly different approach than Version  A of the bill that                                                                    
came to  committee. The CS  removed  adult foster  home  and                                                                    
added  adult  home care,   which would  extend opportunities                                                                    
for  participation beyond  individuals aging  out of  foster                                                                    
care to  include other adults with  disabilities. The change                                                                    
would also  add a new  service and a license  placement type                                                                    
of  adult  home  care  for   adults  with  disabilities  and                                                                    
seniors. The CS  also proposed to change  the  Department of                                                                    
Health and  Social Services  to  the  Department  of Health                                                                     
in  applicable  areas because  of  Executive  Order 121  [an                                                                    
order passed by  the governor in 2022 that  would divide the                                                                    
Department   of  Health   and  Social   Services  into   two                                                                    
departments aligned  by functionality].  The CS  proposed an                                                                    
effective  date  of  July  1, 2022,  to  coincide  with  the                                                                    
effective date of the executive order.                                                                                          
                                                                                                                                
Co-Chair  Bishop  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, it  was so ordered. The CS for  SB 98 was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
9:26:53 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:27:01 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
JOHN   LEE,  DIRECTOR,   SENIOR  AND   DISABILITY  SERVICES,                                                                    
DEPARTMENT    OF   HEALTH    AND   SOCIAL    SERVICES   (via                                                                    
teleconference), spoke  in support  of the bill.  He thanked                                                                    
the  committee for  hearing the  bill.  He thanked  Co-Chair                                                                    
Bishop's office for  working to amend the bill  in ways that                                                                    
he  thought   would  strengthen  home   and  community-based                                                                    
services. He discussed working  towards increasing the reach                                                                    
of  the  bill  to  more individuals  with  disabilities.  He                                                                    
discussed  working  with  stakeholders  on  the  concept  of                                                                    
expanding  the  bill  to  include  others  and  create  more                                                                    
options to remain in home and community-based settings.                                                                         
                                                                                                                                
Mr. Lee  continued his testimony. He  suggested that changes                                                                    
would make  services less expensive,  have a  less demanding                                                                    
workforce expectation, and would  be open to more providers.                                                                    
He noted  that there was work  to be done on  regulation and                                                                    
he was  confident that  the bill would  create a  setting to                                                                    
serve the  population as well  as allow for many  seniors to                                                                    
stay  in local  communities. He  summarized that  the change                                                                    
would create  a small  economic opportunity in  rural areas.                                                                    
He  noted that  the new  adult home  care services  would be                                                                    
less expensive  than some services, but  more expensive than                                                                    
others. He  emphasized that aside from  new additional staff                                                                    
needed to  monitor the  new service,  the amendments  to the                                                                    
bill   were  cost   neutral.  Research   conducted  by   the                                                                    
department  had  shown  that savings  from  the  bill  would                                                                    
offset additional costs.                                                                                                        
                                                                                                                                
9:31:30 AM                                                                                                                    
                                                                                                                                
ANTHONY  NEWMAN,  DEPUTY  DIRECTOR,  SENIOR  AND  DISABILITY                                                                    
SERVICES,  DEPARTMENT OF  HEALTH  AND  SOCIAL SERVICES  (via                                                                    
teleconference),  addressed a  Sectional  Analysis (copy  on                                                                    
file):                                                                                                                          
                                                                                                                                
     Section 1:  Adds a  new section  to AS  47.07, Medicaid                                                                    
     Assistance for Needy Persons, to  create a new program-                                                                    
     adult home  care services  for individuals.  Adult home                                                                    
     care  services will  be  available  for individuals  at                                                                    
     least 18  years of age or  older who are enrolled  in a                                                                    
     home and community-based waiver.                                                                                           
                                                                                                                                
     The  Department  of  Health  will  develop  regulations                                                                    
     establishing  the standards  and rates  of the  program                                                                    
     and providing  an efficient  process to  allow existing                                                                    
     foster  homes to  transition into  the  new adult  home                                                                    
     care license.                                                                                                              
                                                                                                                                
     Section  2:  Amends  AS  47.32.010(b)   to  add  a  new                                                                    
     setting,  "adult  home  care   homes,"  that  shall  be                                                                    
     subject to  the centralized licensing functions  of the                                                                    
     Department of Health.                                                                                                      
                                                                                                                                
     Section 3: Adds a new  section to AS 47.32 that defines                                                                    
     the conditions  under which the department  may license                                                                    
     an adult  home care home.  A person may be  licensed to                                                                    
     operate such  a home for up  to two persons aged  18 or                                                                    
     older  who are  enrolled  in  home and  community-based                                                                    
     waiver services.  This section requires  the department                                                                    
     to  streamline the  application  process necessary  for                                                                    
     the person  to be approved  as an adult home  care home                                                                    
     provider  and  requires  that  the  department  approve                                                                    
     variances of  building code requirements to  the extent                                                                    
     permitted by state, local, or federal law.                                                                                 
                                                                                                                                
     Section  4:  Amends  uncodified law  by  adding  a  new                                                                    
     section  that  requires  the Department  of  Health  to                                                                    
     submit for approval by the  United States Department of                                                                    
     Health  and Human  Services an  amendment to  the state                                                                    
     medical   assistance   plan,   waivers,  or   an   1115                                                                    
     demonstration  waiver as  necessary  to allow  eligible                                                                    
     individuals  to receive  adult come  care services  and                                                                    
     other   long-term   care    services   that   are   not                                                                    
     duplicative.                                                                                                               
                                                                                                                                
     Section 5:  Amends uncodified law adding  a new section                                                                    
     related to the conditional effect  of section 4 and the                                                                    
     required state plan amendments  submitted to the United                                                                    
     States  Department  of   Health  and  Social  Services.                                                                    
     Requires  the  department  to  notify  the  revisor  of                                                                    
    statutes of the approval of state plan amendments.                                                                          
                                                                                                                                
     Section 6:  Effective date  related to  the requirement                                                                    
     for  the  department  to provide  notification  of  the                                                                    
     revisor  of   statutes  of   approval  of   state  plan                                                                    
     amendments.                                                                                                                
                                                                                                                                
     Section 7: Provides  for a July 1,  2022 effective date                                                                    
     to  align with  the effective  date of  Executive Order                                                                    
     121 and the change of  the applicable department to the                                                                    
     Department of Health.                                                                                                      
                                                                                                                                
9:34:24 AM                                                                                                                    
                                                                                                                                
LIZETTE STIEHR,  EXECUTIVE DIRECTOR, ALASKA  ASSOCIATION FOR                                                                    
DEVELOPMENTAL  DISABILITIES,  CHUGIAK (via  teleconference),                                                                    
spoke in  support of the  bill. She expressed  gratitude for                                                                    
the committee's  inquiry about expanding  the bill  to serve                                                                    
more people.  She described that her  organization had asked                                                                    
the same question. She explained  that currently group homes                                                                    
that were  allowed to  provide services  must meet  the same                                                                    
licensing that  applied to group and  assisted living homes.                                                                    
She strongly  supported a shared  vision that believed  in a                                                                    
flexible  system that  supported  individuals toward  having                                                                    
meaningful  lives and  choice.  She thought  the bill  would                                                                    
expand   living   options   for  people   that   experienced                                                                    
developmental  disabilities. She  loved  the  fact that  the                                                                    
bill  would allow  foster  children to  remain  in the  same                                                                    
home.                                                                                                                           
                                                                                                                                
9:36:20 AM                                                                                                                    
                                                                                                                                
MICHELE  GIRAULT,  BOARD  RESIDENT   OF  KEY  COALITION  AND                                                                    
EXECUTIVE  DIRECTOR,  HOPE  COMMUNITY  RESOURCES,  ANCHORAGE                                                                    
(via teleconference), testified in  support of the bill. She                                                                    
thought the  bill aligned with  the shared  vision mentioned                                                                    
by  Ms. Stiehr  and provided  greater flexibility  for those                                                                    
providing   services  to   youth   with  disabilities.   She                                                                    
discussed current  statute and the administrative  burden it                                                                    
caused.  She  explained that  the  bill  would simplify  the                                                                    
process  of allowing  a family  to transition  from a  child                                                                    
license  to  an adult  home  care  license with  the  likely                                                                    
outcome of  youth being able to  stay in the same  home. She                                                                    
thought the  bill would allow  for youth to  have continuity                                                                    
of care.                                                                                                                        
                                                                                                                                
Ms. Girault  continued her testimony.  She noted  that youth                                                                    
with disabilities had  options to stay in  the public school                                                                    
system  until the  age of  20.  She urged  the committee  to                                                                    
support the bill.  She thought the expanded  outreach of the                                                                    
bill  to  support  additional   adults  would  also  provide                                                                    
benefits.                                                                                                                       
                                                                                                                                
Senator Wielechowski  understood that the statute  for long-                                                                    
term care only included authority  for homes for people over                                                                    
60  and  asked if  the  bill  should  amend the  statute  to                                                                    
include the homes.                                                                                                              
                                                                                                                                
Mr.  Lee  did  not  think the  change  Senator  Wielechowski                                                                    
described  needed  to  be  made.  He  asked  for  additional                                                                    
testifiers to weigh in on the matter.                                                                                           
                                                                                                                                
Co-Chair Bishop asked if department  staff could address the                                                                    
question.                                                                                                                       
                                                                                                                                
9:40:17 AM                                                                                                                    
                                                                                                                                
CRAIG  BAXTER,   PROGRAM  MANAGER,   RESIDENTIAL  LICENSING,                                                                    
DIVISION  OF BEHAVIORAL  HEALTH,  DEPARTMENT  OF HEALTH  AND                                                                    
SOCIAL  SERVICES  (via  teleconference),  addressed  Senator                                                                    
Wielechowski's  question. He  did  not  believe the  statute                                                                    
needed to be  amended. He thought it might  be beneficial to                                                                    
reach out to someone that dealt with long-term care.                                                                            
                                                                                                                                
Co-Chair  Bishop suggested  that Mr.  Lee provide  a written                                                                    
response  to  Senator  Wielechowski's before  the  bill  was                                                                    
heard in committee again.                                                                                                       
                                                                                                                                
Mr. Lee agreed to provide the information.                                                                                      
                                                                                                                                
Co-Chair Stedman  considered the  fiscal notes  and observed                                                                    
that there was an increase  in Medicaid services of $168,000                                                                    
per year. He was curious as  to how the department would cap                                                                    
the  amount so  that it  did  not continue  to escalate.  He                                                                    
mentioned  the  slight  decrease  in  state  population.  He                                                                    
acknowledged  problems  controlling   costs  in  health  and                                                                    
social services in the state over the last decade.                                                                              
                                                                                                                                
Mr. Baxter thought  Co-Chair Stedman might be  looking at an                                                                    
old fiscal note  as the current fiscal note  did not project                                                                    
any cost increases to Medicaid services.                                                                                        
                                                                                                                                
9:42:28 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:42:47 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Bishop asked  if Mr.  Lee anticipated  forthcoming                                                                    
updated fiscal notes for the proposed CS.                                                                                       
                                                                                                                                
Mr. Lee answered in the affirmative.                                                                                            
                                                                                                                                
Co-Chair Stedman observed that the  fiscal notes in front of                                                                    
him were  dated from March  of the previous year.  He wanted                                                                    
to see  updated fiscal  notes and expressed  concerned about                                                                    
the growth  of the department.  He mentioned the  budget for                                                                    
the Department of Corrections as an area of concern.                                                                            
                                                                                                                                
Senator von  Imhof thought the  bill represented  an age-old                                                                    
conundrum, particularly  with legislation related  to social                                                                    
services.  She  compared  the  cost of  the  bill  with  the                                                                    
alternatives  and considered  that sometimes  up-front costs                                                                    
saved  more money  in the  future. She  emphasized that  the                                                                    
bill would  put people in  stable homes. She  looked forward                                                                    
to updated fiscal notes. She  was worried about the costs to                                                                    
the  department  but  also   thought  the  committee  should                                                                    
consider the cost of not passing such legislation.                                                                              
                                                                                                                                
SB  98  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:44:53 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:45:11 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 199                                                                                                           
                                                                                                                                
     "An  Act  relating  to  use of  income  of  the  Alaska                                                                    
     permanent  fund;   relating  to   the  amount   of  the                                                                    
     permanent fund dividend; relating  to the duties of the                                                                    
     commissioner   of  revenue;   and   providing  for   an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:45:15 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop relayed  that it was the  second hearing for                                                                    
SB 199. The committee intended to consider a CS.                                                                                
                                                                                                                                
Co-Chair  Stedman  made  a  motion   to  adopt  a  Committee                                                                    
Substitute.                                                                                                                     
                                                                                                                                
9:45:57 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:46:22 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Stedman restated the motion.                                                                                           
                                                                                                                                
Co-Chair   Stedman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for  SB  199, Work  Draft  32-LS1529\I  (Nauman,                                                                    
3/25/22).                                                                                                                       
                                                                                                                                
Co-Chair Bishop OBJECTED for discussion.                                                                                        
                                                                                                                                
Ms. Shine  explained that the  proposed CS took  a different                                                                    
approach  to paying  a Permanent  Fund  Dividend (PFD).  She                                                                    
explained that the previous version  of the bill proposed to                                                                    
have  an escalating  step-up  to a  50/50  dividend, with  a                                                                    
$1,100 PFD in FY 23, a $1,200 PFD  in FY 24, a $1,300 PFD in                                                                    
FY  25, with  a  $1,300  PFD plus  inflation  in  FY 26  and                                                                    
beyond. She  noted there was  a trigger  for a 50/50  PFD if                                                                    
the  legislature adopted  $700 million  in new  revenue. The                                                                    
proposed CS  took a  similar approach,  but a  different PFD                                                                    
payout.  She directed  attention to  Section 3,  which would                                                                    
proposed to  amend the  appropriation for a  PFD to  a 50/50                                                                    
PFD in FY 23, while in FY 24  and beyond there would be a 25                                                                    
percent  of market  value (POMV)  dividend (with  75 percent                                                                    
going to the General Fund).                                                                                                     
                                                                                                                                
Ms. Shine  continued to address  the proposed CS.  She noted                                                                    
that  the new  version proposed  in  Section 5  to amend  AS                                                                    
37.13.145(b). She  discussed conditional effect  language in                                                                    
Section  11,  which  would  require   $800  million  in  new                                                                    
revenues  (as compared  to June  30, 2022)  by December  15,                                                                    
2026. If  the condition  were to  take place,  in FY  28 and                                                                    
beyond, there  would be  a 50/50  POMV dividend.  There were                                                                    
some technical  and conforming  amendments made  between the                                                                    
two  different Committee  Substitutes. The  changes were  to                                                                    
ensure the  language conformed to  a supreme court  case and                                                                    
to ensure that the version was sound.                                                                                           
                                                                                                                                
Co-Chair  Bishop  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
9:49:35 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman assumed that  Co-Chair Bishop had requested                                                                    
updated analyses to be brought before the committee.                                                                            
                                                                                                                                
Co-Chair  Bishop  relayed  that there  were  updated  fiscal                                                                    
analyses  that would  be provided  to the  committee in  due                                                                    
haste  by   the  Legislative  Finance  Division   (LFD).  He                                                                    
expected the bill would be before the committee again soon.                                                                     
                                                                                                                                
Senator Olson  asked what would  happen if the  $800 million                                                                    
in new revenue proposed in the CS did not materialize.                                                                          
                                                                                                                                
Co-Chair  Bishop  answered  that  if  the  revenue  did  not                                                                    
materialize then the PFD would stay at a 25 POMV payout.                                                                        
                                                                                                                                
Senator Wilson asked  why there had been a  change from $700                                                                    
million to $800 million in new revenue.                                                                                         
                                                                                                                                
Co-Chair  Bishop stated  that  the number  was  based on  an                                                                    
analysis  he saw  two months  previously. He  mentioned that                                                                    
the  number   hit  within  $25  million   of  the  Bicameral                                                                    
Permanent Fund Working Groups number the previous year.                                                                         
                                                                                                                                
Co-Chair Stedman informed that  the committee was working on                                                                    
the  operating  budget  and  would  be  coming  out  with  a                                                                    
proposed  CS in  the next  few days.  He explained  that the                                                                    
analysis from LFD  would be updated. He though  there was an                                                                    
overall roughly  5 percent budgetary increase  and mentioned                                                                    
escalating inflation issues.                                                                                                    
                                                                                                                                
9:52:33 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  observed that the  back end of  the funding                                                                    
of  the  50/50  dividend  was  quite  similar  to  what  the                                                                    
governor had  introduced the previous  year. He asked  if it                                                                    
was  the intent  of the  co-chairs to  pay for  the dividend                                                                    
through a fiscal note.                                                                                                          
                                                                                                                                
Co-Chair  Stedman  thought  paying the  dividend  through  a                                                                    
fiscal  note would  most likely  be a  good idea  and stated                                                                    
that the committee would work through the budget process.                                                                       
                                                                                                                                
Senator  Wilson  wondered if  the  committee  would also  be                                                                    
considering other models to be  presented next time the bill                                                                    
was before the committee.                                                                                                       
                                                                                                                                
Co-Chair  Bishop asked  if Senator  Wilson was  asking about                                                                    
running different scenarios.                                                                                                    
                                                                                                                                
Senator Wilson answered affirmatively.                                                                                          
                                                                                                                                
Co-Chair Bishop  stated that  the co-chairs  would encourage                                                                    
running different scenarios.                                                                                                    
                                                                                                                                
Senator Wielechowski  thought Alaskans were  concerned about                                                                    
stability  and dividend  predictability. He  shared concerns                                                                    
about  the  language  that  iterated  "the  legislature  may                                                                    
appropriate funds"  and he  thought absent  a constitutional                                                                    
amendment,  Alaskans   could  not  get  the   stability  and                                                                    
predictability that  was desired. He thought  the bill would                                                                    
put the  state in  a position  in which  future legislatures                                                                    
could choose to ignore the  bill language and pay out lesser                                                                    
dividend amounts than the statute  called for. He noted that                                                                    
there were  bills that proposed a  constitutional payment of                                                                    
the dividend. He did not think the bill provided stability.                                                                     
                                                                                                                                
SB  199  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Bishop  discussed  the agenda  for  the  afternoon                                                                    
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:55:42 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:55 a.m.                                                                                          

Document Name Date/Time Subjects
SB 98 Explanation of Changes ver A to G 4.2.22.pdf SFIN 4/5/2022 9:00:00 AM
SB 98
SB 98 Work Draft ver. G 4.2.22.pdf SFIN 4/5/2022 9:00:00 AM
SB 98
SB 98 Sectional Analysis Version ver. G 4.2.22.pdf SFIN 4/5/2022 9:00:00 AM
SB 98
SB 193 Explanation of Changes ver. I to G 03.30.2022.pdf HL&C 4/25/2022 3:15:00 PM
SFIN 4/5/2022 9:00:00 AM
SB 193
SB 193 Work Draft ver. G 03.30.22.pdf SFIN 4/5/2022 9:00:00 AM
SB 193
SB 199 Sectional Analysis ver. I 3.25.22.pdf SFIN 4/5/2022 9:00:00 AM
SB 199
SB 199 Work Draft ver. I 3.25.22.pdf SFIN 4/5/2022 9:00:00 AM
SB 199
SB 199 Opposition Asplund.pdf SFIN 4/5/2022 9:00:00 AM
SB 199