SENATE FINANCE COMMITTEE April 15, 2019 9:02 a.m. 9:02:14 AM CALL TO ORDER Co-Chair von Imhof called the Senate Finance Committee meeting to order at 9:02 a.m. MEMBERS PRESENT Senator Natasha von Imhof, Co-Chair Senator Bert Stedman, Co-Chair Senator Click Bishop Senator Lyman Hoffman Senator Peter Micciche Senator Donny Olson Senator Mike Shower Senator David Wilson MEMBERS ABSENT Senator Bill Wielechowski ALSO PRESENT Juli Lucky, Staff, Senator Natasha von Imhof; Rynnieva Moss, Staff, Senator John Coghill; Senator John Coghill, Sponsor; Jasmin Martin, Staff, Senator David Wilson; Anne Weske, Director, Permanent Fund Dividend Division; Senator Cathy Giessel. PRESENT VIA TELECONFERENCE Barb Blakeley, Vice-President, Whittier Manor Condo Association, Whittier; Dutch Lucore, Whittier Manor Condo Association, MatSu; Brent Cole, Whittier Manor Condo Association, Anchorage. SUMMARY SB 44 TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS CSSB 44(FIN) was REPORTED out of committee with a "do pass" recommendation and with two previously published fiscal notes: FN 1(CED) and FIN 2(ADM). SB 92 PFD CONTRIBUTIONS TO GENERAL FUND SB 92 was HEARD and HELD in committee for further consideration. SB 95 ALASKA RAILROAD CORP. LAND TRANSFERS SB 95 was HEARD and HELD in committee for further consideration. SENATE BILL NO. 44 "An Act relating to the prescription of drugs by a physician assistant without physical examination." 9:03:30 AM Senator Wilson MOVED to ADOPT a committee substitute. Co-Chair von Imhof OBJECTED for discussion. 9:04:03 AM AT EASE 9:04:40 AM RECONVENED 9:04:48 AM Senator Wilson MOVED to ADOPT the committee substitute for SB 44, Work Draft 31-LS0019\E (Fisher, 4/11/19). Co-Chair von Imhof OBJECTED for discussion. 9:05:33 AM JULI LUCKY, STAFF, SENATOR NATASHA VON IMHOF, addressed the Explanation of Changes (copy on file): Page 3, line 2: changes "person" to "patient" After discussion with Leg Legal it was determined that the term "person" is used when describing scenarios where an individual is not yet in a patient-provider relationship or when it comes to consent; and that the term "patient" is used when an individual is actively participating as a patient. Page 3, line 5: removes [(c)] from that line as it was a Leg Legal typo Page 3, line 13: adds a Section 5, creating authority for the State Medical Board write regulations to implement this bill Page 3, line 19: gives an immediate effective date for Section 5 Co-Chair von Imhof WITHDREW the OBJECTION. There being NO further OBJECTION, the proposed committee substitute was ADOPTED. Senator Micciche stated that he had introduced the original telehealth bill. He felt that telehealth was remarkably successful. Senator Wilson MOVED to REPORT CSSB 44(FIN) out of committee with individual recommendations and attached fiscal notes. CSSB 44(FIN) was REPORTED out of committee with a "do pass" recommendation and with two previously published fiscal notes: FN 1(CED) and FIN 2(ADM). SENATE BILL NO. 95 "An Act approving the transfer of certain Alaska Railroad Corporation land; and providing for an effective date." 9:09:42 AM RYNNIEVA MOSS, STAFF, SENATOR JOHN COGHILL, explained the bill. She outlined the sections and subsections of the bill. 9:11:29 AM SENATOR JOHN COGHILL, SPONSOR, stated that the legislation put Whittier Manor into private hands and put railroad out of a conflict with the city. He felt that the private ownership would increase the tax base, and the ability to improve the building. Co-Chair von Imhof stated that there was invited testimony prepared to present to the committee. 9:12:50 AM BARB BLAKELEY, VICE-PRESIDENT, WHITTIER MANOR CONDO ASSOCIATION, WHITTIER (via teleconference), shared that she owned a condo in Whittier Manor. She stated that the property was owned by the Alaska Railroad Corporation, and the forty year lease was set to expire December 31, 2019. She stated that there had been an attempt for many years to purchase the property, but the matter was complicated by the master lease agreement that the railroad had with the City of Whittier, whereby when some of the leases expire, the management of the leases would be assumed by the city. She stated that a long-term lease was not possible, because the city's master lease was set to expire in 2033. She stressed that it was a time of uncertainty, and the property values were declining. She stressed that financing was unavailable for units for sale, because of the lease agreement. She shared that there was an agreement reached for the railroad to sell the land to the condo association. Co-Chair von Imhof shared that there were two people from the Alaska Railroad Corporation available for questions. Co-Chair von Imhof OPENED public testimony. 9:16:30 AM DUTCH LUCORE, WHITTIER MANOR CONDO ASSOCIATION, MATSU (via teleconference), spoke in support of the bill. He echoed the comments from Ms. Blakeley. 9:17:31 AM BRENT COLE, WHITTIER MANOR CONDO ASSOCIATION, ANCHORAGE (via teleconference), spoke in support of the bill. Co-Chair von Imhof CLOSED public testimony. 9:18:55 AM Senator Micciche reviewed the fiscal note. SB 95 was HEARD and HELD in committee for further consideration. SENATE BILL NO. 92 "An Act relating to contributions from permanent fund dividends to the general fund." 9:20:15 AM JASMIN MARTIN, STAFF, SENATOR DAVID WILSON, introduced herself. 9:20:48 AM SENATOR DAVID WILSON, SPONSOR explained the legislation. He stated that it provided a mechanism to donate an individual Permanent Fund Dividend to the General Fund. Senator Wilson explained the Sectional Analysis (copy on file): Part (a) ? Defines the parameters and increments for contributing to the general fund, ? Establishes that donations through Pick.Click.Give. take priority over donations to the general fund if there is a shortfall, and; ? Requires a seven percent administration fee is deducted from donations to the general fund. page 1, lines 3 15 continuing on page 2, line 1 Part (b) ? Notes that a public agency that claims a dividend on an individual's behalf is not permitted to make contributions from that dividend. page 2, lines 2-4 Part (c) ? Explicitly states that this is separate from the Pick.Click.Give "button," or mechanism, in the dividend application. page 2, lines 5-8 Senator Wilson explained the fiscal note. Co-Chair von Imhof OPENED public testimony. Co-Chair von Imhof CLOSED public testimony. Co-Chair Stedman noted that the credit agencies looked to the Permanent Fund Dividend to collect funds that were owed to different entities. He wondered what would occur, should there be garnishments, and whether the dividend could be gifted to the state while not paying one's debt obligations. Co-Chair von Imhof called Ms. Weske to address the question. 9:26:51 AM ANNE WESKE, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION, replied that there was a priority order for PFD payments in the payout, and garnishments were first in that priority order. One could not bypass a garnishment. Co-Chair Stedman surmised that the people could not avoid their obligations by giving their PFD to the state. Ms. Weske replied in the affirmative. Senator Micciche remarked that the bill did not change the current situation in the state. He felt that there should be a consideration for people to donate their PFD tax free. Co-Chair von Imhof looked at the Sponsor Statement, and remarked that some cases could be counted as a tax exempt contribution, but said that one should consult a tax professional. Senator Micciche agreed, and commented on the contribution based on one's tax bracket. Co-Chair von Imhof stated that there could be further conversations about an amendment. Senator Wilson stressed that people should keep in touch with a tax professional about their contribution. 9:31:29 AM Senator Bishop wondered whether the bill was created, because of Senator Wilson's concerns from his constituents. Senator Wilson replied that it was in response to people around the state. Co-Chair von Imhof cautioned that tax planning was an individual issue. Senator Micciche stressed that if someone does not apply for the dividend, the dividend get split up between all the people that apply. He stressed that participating will always be related to one's tax bracket. Senator Wilson shared that there was a new program added to the PFD, and asked for how that program had affected the other PFD charitable giving programs. Ms. Weske shared that the education raffle was added the year before, but the numbers for Pick.Click.Give did not decline, nor did UA college savings. She stressed that there was an additional $1 million for the education raffle. SB 92 was HEARD and HELD in committee for further consideration. ADJOURNMENT 9:34:40 AM The meeting was adjourned at 9:34 a.m.