Legislature(2021 - 2022)SENATE FINANCE 532
05/15/2022 11:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB363 | |
| HB172 | |
| HB265 | |
| HB127 | |
| HB114 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 19 | TELECONFERENCED | |
| += | HB 114 | TELECONFERENCED | |
| += | HB 127 | TELECONFERENCED | |
| += | HB 172 | TELECONFERENCED | |
| += | HB 265 | TELECONFERENCED | |
| += | HB 363 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 15, 2022
1:02 p.m.
1:02:48 PM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 1:02 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Natasha von Imhof
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
Senator Donny Olson
ALSO PRESENT
Erin Shine, Staff, Senator Click Bishop; Representative
Bryce Edgmon, Sponsor; Sana Efird, Executive Director,
Alaska Commission on Postsecondary Education, Department of
Education and Early Development.
PRESENT VIA TELECONFERENCE
Bill O'Leary, Alaska Railroad, Anchorage.
SUMMARY
SCS HB 114(FIN)
EDUCATION & SUPPLEMENTAL LOAN PROGRAMS
SCS HB 114(FIN) was REPORTED out of committee
with three no recommendation, one amend, and
two do pass recommendations; and with one new
fiscal impact note from the Department of
Education and Early Development, and one
previously published zero fiscal note: FN4 (GOV).
SCSHB 127(FIN)
MUNI BOND BANK: UA, LOAN AND BOND LIMITS
SCS CSHB 127(FIN) was REPORTED out of committee
with one no recommendation, one amend, and
three do pass recommendations; and one new zero
fiscal note from the Department of Commerce,
Community and Economic Development, and one
previously published fiscal note: FN2 (REV).
SCS CSHB 172(FIN)
MENTAL HEALTH FACILITIES & MEDS
SCS CSHB 172(FIN) was REPORTED out of committee
with one no recommendation and four do pass
recommendations; and one new fiscal impact note
from the Department of Administration; one new
fiscal impact note from the Alaska Justice
System; one new fiscal impact note from the
Department of Health and the Department of Family
and Childrens Services; one previously published
zero fiscal note: FN4 (DPS); and one previously
published fiscal note: FN6 (DHS/DOH).
SCS CSHB 265(FIN)
HEALTH CARE SERVICES BY TELEHEALTH
SCS CSHB 265(FIN) was REPORTED out of committee
with one no recommendation and three do pass
recommendations; one new fiscal impact note from
the Department of Commerce, Community and
Economic Development, one previously published
zero fiscal note: FN5 (DHS/DOH); and two
previously published fiscal impact notes: Fn6
(DHS/DOH) and FN7 (DHS/DOH).
SCS CSHB 363(FIN)
BROADBAND: OFFICE, GRANTS, PARITY
SCS CSHB 363(FIN) was REPORTED out of committee
with three no recommendation and three do
pass recommendations, and with one new fiscal
impact note from the Department of Commerce,
Community and Economic Development.
CS FOR HOUSE BILL NO. 363(FIN)
"An Act establishing the office of broadband; creating
the broadband parity adjustment fund; establishing the
Statewide Broadband Advisory Board; and providing for
an effective date."
1:04:09 PM
Senator von Imhof MOVED to ADOPT the committee substitute
for CSHB 363(FIN), Work Draft 32-LS1527\F (Klein, 5/15/22).
Co-Chair Bishop OBJECTED for discussion.
1:04:30 PM
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, explained the
committee substitute. She stated that there was a new
Section 1 inserted into the bill and added a new section
with four of the legislative findings from the Senate Labor
and Commerce Committee. She noted that in Section 2 there
were two additional members that were added to the
Statewide Broadband Advisory Board representing rural
energy systems and a technology neutral consultant. She
noted that the final change was in Section 2 that provided
that the Broadband Technical Working Group be comprised of
eight members appointed by the Advisory Board to three year
terms.
Co-Chair Bishop WITHDREW their OBJECTION. There being NO
OBJECTION, it was so ordered.
Senator Wielechowski looked at page 2, line 28, and queried
the definition of grantees with instate experience.
Ms. Shine deferred to the sponsor.
1:07:09 PM
REPRESENTATIVE BRYCE EDGMON, SPONSOR, replied that the
instate experience came from the course development of the
Broadband Taskforce Report, and was a reference to attempt
to keep the experience instate, but felt that it was
broadly defined in the report.
Senator Wielechowski surmised that there was not a specific
number of years needed by a grantee.
Representative Edgmon replied in the affirmative.
1:09:16 PM
Senator von Imhof MOVED to ADOPT CONCEPTUAL AMENDMENT ONE:
On page 5, line 30 after the word board insert and
broadband technical working group
Co-Chair Bishop OBJECTED for discussion.
1:09:27 PM
Senator von Imhof explained the conceptual amendment task
force labor and commerce had a provision about paying per
diem. She noted that the current version did not provide
per diem, and noted the addition of the working group
within the bill. She wanted to ensure that neither group
receive per diem or travel expenses.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
1:11:04 PM
AT EASE
1:11:37 PM
RECONVENED
1:11:41 PM
Co-Chair Bishop stated that there would be forthcoming
fiscal notes.
Senator von Imhof MOVED to REPORT SCS CSHB 363(FIN) out of
committee with individual recommendations and attached
fiscal notes. There being NO OBJECTION it was so ordered.
SCS CSHB 363(FIN) was REPORTED out of committee with three
no recommendation and three do pass recommendations,
and with one new fiscal impact note from the Department of
Commerce, Community and Economic Development.
CS FOR HOUSE BILL NO. 172(FIN) am
"An Act relating to crisis stabilization centers,
crisis residential centers, and subacute mental health
facilities; relating to representation by an attorney;
relating to the administration of psychotropic
medication in a crisis situation; relating to
hospitalizations for mental health evaluation;
relating to licensed facilities; relating to a report
to the legislature on psychiatric patients and patient
rights; and providing for an effective date."
1:13:17 PM
Senator Wielechowski MOVED to ADOPT proposed committee
substitute for CSHB 172(FIN), Work Draft 32-GH1730\E
(Dunmire, 5/13/22).
Co-Chair Bishop OBJECTED for discussion.
1:13:27 PM
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, discussed the
changes in the committee substitute.
Co-Chair Bishop WITHDREW their OBJECTION. There being NO
OBJECTION, it was so ordered.
1:21:10 PM
AT EASE
1:21:26 PM
RECONVENED
1:21:34 PM
Co-Chair Bishop discussed the fiscal notes.
Senator Wielechowski MOVED to report SCS CSHB 172(FIN) out
of Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 172(FIN) was REPORTED out of committee with one
no recommendation and four do pass recommendations; and
one new fiscal impact note from the Department of
Administration; one new fiscal impact note from the Alaska
Justice System; one new fiscal impact note from the
Department of Health and the Department of Family and
Childrens Services; one previously published zero fiscal
note: FN4 (DPS); and one previously published fiscal note:
FN6 (DHS/DOH).
CS FOR HOUSE BILL NO. 265(FIN)
"An Act relating to telehealth; relating to the
practice of medicine and the practice of nursing;
relating to medical assistance coverage for services
provided by telehealth; and providing for an effective
date."
1:25:28 PM
Senator Wilson MOVED to ADOPT proposed committee substitute
for CSHB 265(FIN), Work Draft 32-LS0754\R (Foote, 5/12/22).
Co-Chair Bishop OBJECTED for discussion.
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, explained the
changes in the committee substitute.
1:29:00 PM
AT EASE
1:30:01 PM
RECONVENED
1:30:04 PM
Ms. Shine explained that there was a question during the At
Ease about the effective dates in the bill. She explained
that on page 15, line 25, the effective date of Sections 9
and 10 was June 30, 2030, but only with the conditional
effect of Section 13 took place.
Senator Wielechowski asked for further explanation about
the payment parity.
Ms. Shine replied that the language was added at the
request of the sponsor of the companion bill.
Senator Wilson explained that the payment parity was a
compromise in looking at best practices in payment parity.
Co-Chair Bishop WITHDREW their OBJECTION. There being NO
OBJECTION, it was so ordered.
Senator Wilson discussed FN 5, a zero fiscal note from the
Department of Health, OMB Component number 3234.
Senator Wilson discussed a new fiscal impact note from
Department of Commerce, Community and Economic Development,
OMB Component 2360.
Senator Wilson discussed FN 7, a fiscal impact note from
the Department of Health, OMB Component 2665.
Senator Wilson discussed FN 8, a fiscal impact note form
the Department of Health, OMB Component number 242.
Senator Wilson MOVED to report SCS CSHB 265(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it
was so ordered.
SCS CSHB 265(FIN) was REPORTED out of committee with one
no recommendation and three do pass recommendations;
one new fiscal impact note from the Department of Commerce,
Community and Economic Development, one previously
published zero fiscal note: FN5 (DHS/DOH); and two
previously published fiscal impact notes: FH7 (DHS/DOH) and
FN8 (DHS/DOH).
HOUSE BILL NO. 127
"An Act relating to the Alaska Municipal Bond Bank
Authority."
1:35:31 PM
Senator von Imhof MOVED to ADOPT proposed committee
substitute for HB 127, Work Draft 32-LS0629\B (Dunmire,
5/5/22).
Co-Chair Bishop OBJECTED for discussion.
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, explained the
changes in the committee substitute.
Co-Chair Bishop WITHDREW their OBJECTION. There being NO
OBJECTION, it was so ordered.
1:38:30 PM
RECONVENED
Co-Chair Bishop stated that he had covered the fiscal
notes.
Senator Wilson wondered whether there was interest in
additional bond authority with other projects in the state.
1:39:03 PM
BILL O'LEARY, ALASKA RAILROAD, ANCHORAGE (via
teleconference), replied that the railroad was always
interested in the authority to move forward on economic
development projects. He stated that bond authority was
considered just one piece of the puzzle.
Senator von Imhof MOVED to report SCS HB 127(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION it was
so ordered.
SCS CSHB 127(FIN) was REPORTED out of committee with one
no recommendation, one amend, and three do pass
recommendations; and one new zero fiscal note from the
Department of Commerce, Community and Economic Development,
and one previously published fiscal note: FN2 (REV).
HOUSE BILL NO. 114 am
"An Act relating to the education loan program and
Alaska supplemental education loan program; and
providing for an effective date."
1:40:34 PM
AT EASE
1:41:03 PM
RECONVENED
1:41:30 PM
Senator Hoffman MOVED to ADOPT proposed committee
substitute for HB 114, Work Draft 32-GH1644\B (Marx,
5/12/22).
Co-Chair Bishop OBJECTED for discussion.
1:41:58 PM
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, discussed the
changes to the committee substitute.
Senator Wielechowski stated that he had a question for
someone from the Department of Education and Early
Development.
1:42:53 PM
SANA EFIRD, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT, introduced herself.
Senator Wielechowski recalled that he had previously posed
the question about the definition of beneficiary on page
1, line 12.
Ms. Efird replied that she had submitted the answer to that
question, but remarked that the difference for a
beneficiary in the program was a person that was the
recipient of the benefit of the loan.
Senator Wielechowski wondered whether wealthy parents could
receive cheaper loans instead of the bank from the state.
Ms. Efird replied that if the applicant met the eligibility
requirements of the loan, they could receive a state loan.
Senator Wielechowski expressed concern, because under
current law one must have good credit to receive the state
loan.
Ms. Efird replied that there were specific credit
requirements for the loan.
Senator Wielechowski wondered what would happen if someone
or someones family had bad credit.
1:45:4 0 PM
Ms. Efird replied that a student that may not qualify could
get a cosigner for the loan. She agreed that the student
loan corporation is responsible for the financial
sustainability of the fund.
Senator Wielechowski wondered whether a beneficiary also
had to be an Alaska resident under the bill.
Ms. Efird replied that there were various student loan
programs. She shared that there must be proof of Alaskan
residency for a student that was taking an in school loan,
even if attending out of state. She noted that the bill had
expanded the criteria for the refinance loan program. The
expansion of the eligibility included those that could have
previously received a loan through the student loan
corporation, but were now out of state.
Co-Chair Bishop queried the definition of Alaskan
resident in the bill.
Ms. Efird replied that the requirement was the same as the
Permanent Fund Dividend (PFD) criteria.
Senator Wielechowski noted that the bill allowed the
corporation to set a maximum loan amount. He wondered
whether the bill allowed the state to cover a large amount
of tuition for a wealthy family.
Ms. Efird replied that the bill gave the authority to the
corporation board the ability to set the loan limits based
on current analysis of instate cost an out-of-state costs
of where the majority of Alaska student attendance.
1:51:49 PM
Senator von Imhof queried the evaluation of the ability for
repayment.
Ms. Efird replied that she was not the loan specialist, and
agreed to provide further information. She did explain that
there were credit evaluations.
Senator von Imhof queried the ability for a student to sign
on a loan, and wondered why there was no cosigner required
for all applicants. She queried the repayment timeline.
Ms. Efird stated that the default rate for the refinance
program had a zero percent default rate. She stated that an
in school student loan was deferred while the student was
in school. After graduation, the student had six months
before repayment begins. She noted that there were a number
of different payment plans.
1:55:23 PM
Senator Wilson remarked that he took out a loan for his
graduate studies from the corporation. He surmised that the
intent was to take out low-risk loans. He felt that it was
not a competition with banks.
Ms. Efird agreed. She explained that the corporation was
fulfilling the mission set out in statute.
1:57:43 PM
AT EASE
1:57:53 PM
RECONVENED
1:57:58 PM
Co-Chair Bishop WITHDREW their OBJECTION. There being NO
OBJECTION, it was so ordered.
1:58:30 PM
Co-Chair Bishop discussed FN 3, a zero fiscal note from the
Department of Education and Early Development, OMB
Component 2738.
Co-Chair Bishop asked about the impact of the changes in
the committee substitute.
Ms. Efird stated that the effective date was retroactive to
2016.
Senator Hoffman MOVED to report SCS HB 114(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS HB 114(FIN) was REPORTED out of committee with three
no recommendation, one amend, and two do pass
recommendations; and with one new fiscal impact note from
the Department of Education and Early Development, and one
previously published zero fiscal note: FN4 (GOV).
Co-Chair Bishop discussed the following day's agenda //
ADJOURNMENT
2:03:22 PM
The meeting was adjourned at 2:03 p.m.