Legislature(2017 - 2018)SENATE FINANCE 532

06/08/2017 11:00 AM CONFERENCE COMMITTEES ON HB 57 AND HB 59

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Audio Topic
11:01:09 AM Start
11:26:34 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS
Heard & Held
= HB 59 APPROP: MENTAL HEALTH BUDGET
Heard & Held
Department of Corrections
Department of Law
               30TH ALASKA STATE LEGISLATURE                                                                                    
                       FIRST SESSION                                                                                            
           CONFERENCE COMMITTEE ON HB57 and HB59                                                                                
                       June 8, 2017                                                                                             
                        11:01 a.m.                                                                                              
                                                                                                                                
11:01:09 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Chair Seaton called the Conference Committee meeting on                                                                         
HB57 and HB59 to order at 11:01 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT:                                                                                                              
                                                                                                                                
House:                                                                                                                          
Representative Paul Seaton, Chair                                                                                               
Representative Neil Foster                                                                                                      
Representative Lance Pruitt                                                                                                     
                                                                                                                                
Senate:                                                                                                                         
Senator Lyman Hoffman, Vice-Chair                                                                                               
Senator Anna MacKinnon                                                                                                          
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT:                                                                                                                 
                                                                                                                                
David   Teal,   Director,  Legislative   Finance   Division;                                                                    
Representative    David   Eastman;    Representative   Scott                                                                    
Kawasaki;   Representative  Dave   Talerico;  Representative                                                                    
Steve Thompson; Representative  Cathy Tilton; Representative                                                                    
Tammie Wilson;                                                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 57     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 57 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 59     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 59 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
CS FOR HOUSE BILL NO. 57(FIN) am(brf sup maj fld)(efd fld)                                                                    
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;   capitalizing   funds;   repealing                                                                    
     appropriations; and  making supplemental appropriations                                                                    
     and reappropriations."                                                                                                     
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 57(FIN) am S                                                                              
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;   capitalizing   funds;   repealing                                                                    
     appropriations; making  supplemental appropriations and                                                                    
     reappropriations; making appropriations  under art. IX,                                                                    
     sec. 17(c),  Constitution of the State  of Alaska, from                                                                    
     the constitutional  budget reserve fund;  and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
and                                                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 59(FIN)                                                                                                 
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 59(FIN)                                                                                   
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
11:01:43 AM                                                                                                                   
                                                                                                                                
Co-Chair  Seaton   invited  David  Teal,  Director   of  the                                                                    
Legislative  Finance Division  to  join  legislators at  the                                                                    
table. He  reported that the  conference committee  would be                                                                    
addressing  open items  in  HB 57  and HB  59  based on  the                                                                    
motion  sheets distributed  to members  earlier  in the  day                                                                    
dated June  8th on the  Department of Corrections  (DOC) and                                                                    
the Department of Law (LAW).                                                                                                    
                                                                                                                                
Senator  Hoffman  MOVED  to  ADOPT   the  following  in  the                                                                    
Department of Correction's budget:                                                                                              
                                                                                                                                
     Item 1    Senate                                                                                                           
                                                                                                                                
Representative Pruitt OBJECTED.                                                                                                 
                                                                                                                                
Co-Chair Seaton  indicated the  committee would  address the                                                                    
objection item until the end of the items.                                                                                      
                                                                                                                                
Vice-Chair Hoffman continued:                                                                                                   
                                                                                                                                
     Item 2    Senate                                                                                                           
                                                                                                                                
Representative Pruitt OBJECTED.                                                                                                 
                                                                                                                                
Co-Chair  Seaton relayed  that the  committee would  address                                                                    
the item at the end.                                                                                                            
                                                                                                                                
Co-Chair Hoffman continued:                                                                                                     
                                                                                                                                
     Item 3    House                                                                                                            
     Item 4    House                                                                                                            
     Item 5    House                                                                                                            
     Item 6    House for both lines                                                                                             
     Item 7    Senate for both lines                                                                                            
                                                                                                                                
Co-Chair Seaton  indicated Items 2, 3,  4, 5, 6, and  7 were                                                                    
ADOPTED.  [Item  2  had an  objection  and  Co-Chair  Seaton                                                                    
addresses  the  error   below].  He  invited  Representative                                                                    
Pruitt to speak to his objection.                                                                                               
                                                                                                                                
Representative  Pruitt spoke  to his  objection. One  of the                                                                    
concerns his  caucus had  was because the  item would  add a                                                                    
division planner  position, He  thought the  discussion took                                                                    
place in subcommittee  for DOC. There had  been concern with                                                                    
adding the position.                                                                                                            
                                                                                                                                
Co-Chair  Hoffman  responded  that   the  senate  added  the                                                                    
position,   which  was   funded   by  designated   statutory                                                                    
receipts.  The  planner  would assist  the  department  with                                                                    
identifying   and    addressing   justice    reform   issues                                                                    
particularly  those that  spanned  several divisions  within                                                                    
DOC  as well  as coordinating  between the  state and  local                                                                    
stakeholders. He  believed that  the position  was justified                                                                    
since it was funded through designated receipts.                                                                                
                                                                                                                                
Co-Chair  Seaton relayed  that the  committee would  take an                                                                    
'at ease' to discuss the item further.                                                                                          
                                                                                                                                
11:04:38 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
11:09:50 AM                                                                                                                   
RECONVEYNED                                                                                                                     
                                                                                                                                
Co-Chair  Seaton   RESCINDED  his  motion   for  restatement                                                                    
purposes regarding the items the committee adopted.                                                                             
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Seaton restated  the motion that Items 3,  4, 5, 6,                                                                    
and 7 were not objected to and would be adopted.                                                                                
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT Item 1-Senate.                                                                                  
                                                                                                                                
Representative Pruitt OBJECTED.                                                                                                 
                                                                                                                                
Co-Chair Hoffman explained  that a letter was  passed out to                                                                    
committee  members  from  Senator  Coghill  (copy  on  file)                                                                    
regarding  the  authority  to receive  statutory  designated                                                                    
program receipts  of $175 thousand,  which he  had explained                                                                    
earlier. The letter was back-up to his explanation.                                                                             
                                                                                                                                
Representative Pruitt MAINTAINED his OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: MacKinnon, Foster, Olson, Hoffmann, Seaton                                                                            
                                                                                                                                
OPPOSED: Pruitt                                                                                                                 
                                                                                                                                
The  MOTION to  ADOPT  Item 1-Senate  PASSED  (House: 2/1  -                                                                    
Senate: 3/0).                                                                                                                   
                                                                                                                                
11:11:42 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT Item 2-Senate.                                                                                  
                                                                                                                                
Representative  Pruitt spoke  to  his objection  to Item  2.                                                                    
Adopting   the   senate's   version  would   maintain   four                                                                    
positions. There had  been a conversation about  the item in                                                                    
the  House Finance  Subcommittee.  It  was determined  after                                                                    
vetting  the  item that  the  four  positions would  not  be                                                                    
accepted.  The   objections  from  members  of   his  caucus                                                                    
remained.                                                                                                                       
                                                                                                                                
Co-Chair Hoffman  explained that the  information technology                                                                    
(IT) positions would be instrumental  in extracting the most                                                                    
potential  savings having  to  do with  SB  91 [The  omnibus                                                                    
crime   bill  adopted   in  2016],   a  critical   piece  of                                                                    
legislation adopted by both bodies.                                                                                             
                                                                                                                                
11:13:06 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
11:17:44 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton asked Mr. Teal  to explain the justification                                                                    
for the positions in Item  2 of the conference-able items in                                                                    
DOC.                                                                                                                            
                                                                                                                                
DAVID   TEAL,   DIRECTOR,  LEGISLATIVE   FINANCE   DIVISION,                                                                    
explained  that  the  four  positions  were  in  the  Palmer                                                                    
Correctional  Center. With  the  closure  of that  facility,                                                                    
they were transferred to the  IT section. The positions were                                                                    
no  longer correctional  officer positions  but rather  they                                                                    
were  IT positions.  They  were  needed to  do  a number  of                                                                    
projects having  to do with prison  reforms that accompanied                                                                    
SB 91. The  department felt the positions  were essential to                                                                    
its IT systems.                                                                                                                 
                                                                                                                                
Representative Pruitt asked if  there had been reductions in                                                                    
DOC. He  remembered part  of the discussion  on SB  91 about                                                                    
savings resulting from  not having as many  people in prison                                                                    
as well  as shutting down one  of the prisons. He  was aware                                                                    
of  the opening  of  Meadow Creek  at Highland  Correctional                                                                    
Facility. He  asked if  there had  been other  reductions in                                                                    
DOC personnel in the previous year.                                                                                             
                                                                                                                                
Mr. Teal suggested taking a  recess. He commented that there                                                                    
had been reductions but he did  not know if all of them were                                                                    
associated  with   SB  91,  or  whether   there  were  other                                                                    
reductions. He could not fully answer the question.                                                                             
                                                                                                                                
11:20:03 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
11:22:40 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton asked Mr. Teal to provide an explanation.                                                                       
                                                                                                                                
Mr.  Teal  responded that  the  governor's  budget had  been                                                                    
reduced  by  approximately  $18 million.  However,  the  net                                                                    
(because  there was  a $6.9  million amount  added back  for                                                                    
pre-trial) was a reduction of $11 million for DOC in FY 18.                                                                     
                                                                                                                                
Representative   Pruitt  appreciated   the  answer   to  his                                                                    
question. At  the break, he  found out about  the discussion                                                                    
during the  subcommittee process.  The reason  the amendment                                                                    
had been  brought forward  and accepted  was that  DOC could                                                                    
not explain why they were  not currently using the money. He                                                                    
thanked  the  committee  for the  willingness  to  have  the                                                                    
conversation.                                                                                                                   
                                                                                                                                
Representative Pruitt MAINTAINED his OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Olson, Foster, MacKinnon, Seaton, Hoffman                                                                             
OPPOSED: Pruitt                                                                                                                 
                                                                                                                                
The  MOTION to  ADOPT  Item 2-Senate  PASSED  (House: 2/1  -                                                                    
Senate: 3/0).                                                                                                                   
                                                                                                                                
Co-Chair  Seaton  indicated  that   the  action  closed  the                                                                    
conference-able items in the Department of Corrections.                                                                         
                                                                                                                                
11:24:47 AM                                                                                                                   
                                                                                                                                
Senator  Hoffmann  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Law's budget:                                                                                                     
                                                                                                                                
     Item 1    House minus $81,400 for a new total of                                                                           
               $244,200. This funds the positions at 75% in                                                                     
               recognition that the positions would not be                                                                      
               filled on July 1.                                                                                                
     Item 2    Senate                                                                                                           
     Item 3    House                                                                                                            
     Item 4    House                                                                                                            
                                                                                                                                
Senator Olson requested an "at ease."                                                                                           
                                                                                                                                
11:25:25 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
11:25:42 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Seaton  indicated  that   the  action  closed  the                                                                    
conference-able items in the Department of Law.                                                                                 
                                                                                                                                
Co-Chair Seaton conveyed that  the next Conference Committee                                                                    
meeting  would be  held on  Friday, June  9, 2017,  at 11:30                                                                    
a.m. The  committee would be  taking up  the conference-able                                                                    
items in  the Department  of Military and  Veterans Affairs,                                                                    
the Department of Public Safety,  the Department of Revenue,                                                                    
the  Executive  Branch-wide Appropriations,  and  Judiciary.                                                                    
The meeting information was available on BASIS.                                                                                 
                                                                                                                                
HB  57  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  59  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
11:26:34 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 11:26 a.m.                                                                                         

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