03/12/2025 01:30 PM House FINANCE

HOUSE BILL NO. 53                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     making  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."                                                                                      
                                                                                                                                
HOUSE BILL NO. 55                                                                                                             
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
2:42:07 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT  the  proposed  committee                                                                    
substitute  for   HB  53,  Work  Draft   34-GH1462\I  (Marx,                                                                    
3/11/25).                                                                                                                       
                                                                                                                                
Co-Chair Josephson OBJECTED for discussion.                                                                                     
                                                                                                                                
Co-Chair Josephson asked his staff  to review the changes in                                                                    
the CS.                                                                                                                         
                                                                                                                                
2:43:58 PM                                                                                                                    
                                                                                                                                
ALEXANDER SCHROEDER,  STAFF, REPRESENTATIVE  ANDY JOSEPHSON,                                                                    
reviewed   the   changes.   He   reviewed   the   additional                                                                    
spreadsheets  in  members'   packets  from  the  Legislative                                                                    
Finance  Division  (LFD) (copy  on  file).  He reviewed  the                                                                    
changes in the numbers section of the bill.                                                                                     
                                                                                                                                
2:48:43 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster requested a slower review.                                                                                      
                                                                                                                                
Co-Chair Josephson returned to page  2, line 5 through 8. He                                                                    
asked Mr. Schroeder to summarize.                                                                                               
                                                                                                                                
Mr.   Schroeder  summarized   the  change,   which  was   an                                                                    
effectively weakening the legislative intent.                                                                                   
                                                                                                                                
Co-Chair  Josephson stated  there had  been concern  that $5                                                                    
million,  and  felt that  next  change  was related  to  the                                                                    
Department of Agriculture, and it was a placeholder.                                                                            
                                                                                                                                
Representative   Galvin  stated   they   were  leaving   the                                                                    
Department of Agriculture as a placeholder.                                                                                     
                                                                                                                                
Co-Chair Josephson believed she was correct.                                                                                    
                                                                                                                                
Mr.  Schroeder answered  that the  idea  was if  it was  not                                                                    
included  in the  CS the  positions would  be gone,  so they                                                                    
were included to accurately reflect the totals.                                                                                 
                                                                                                                                
Representative Hannan asked if the  dollar amount had been a                                                                    
decrement in the budget.                                                                                                        
                                                                                                                                
Co-Chair Josephson was confident it was true.                                                                                   
                                                                                                                                
2:52:59 PM                                                                                                                    
                                                                                                                                
Representative  Hannan  requested   the  page  numbers  when                                                                    
reviewed.                                                                                                                       
                                                                                                                                
Mr. Schroeder relayed  that the language section  in the new                                                                    
CS began on page 55.                                                                                                            
                                                                                                                                
Mr. Schroeder continued to outline the changes.                                                                                 
                                                                                                                                
Co-Chair  Josephson remarked  that  there  were some  marked                                                                    
items that were "in flux."                                                                                                      
                                                                                                                                
Mr.  Schroeder moved  to page  55, lines  10 through  15 for                                                                    
supplemental Department  of Fish and Game  which amended the                                                                    
prior year's fishery disaster fund.                                                                                             
                                                                                                                                
Representative  Bynum noted  there were  two documents.  One                                                                    
was a clean document and one was a redline draft.                                                                               
                                                                                                                                
Co-Chair Josephson was using the clean version.                                                                                 
                                                                                                                                
Representative  Johnson stated  the  section  should be  the                                                                    
same.                                                                                                                           
                                                                                                                                
Co-Chair  Josephson noted  Mr. Schroeder  was talking  about                                                                    
section 5.                                                                                                                      
                                                                                                                                
Mr. Schroeder moved  to portion related to  employees of the                                                                    
executive branch.                                                                                                               
                                                                                                                                
Co-Chair  Josephson  believed   they  were  like  collective                                                                    
bargaining  agreements   that  would  be  adopted   and  the                                                                    
legislature wanted to know what was going on.                                                                                   
                                                                                                                                
Representative Hannan asked if  the legislature was notified                                                                    
in order to adjust the budget.                                                                                                  
                                                                                                                                
2:59:20 PM                                                                                                                    
                                                                                                                                
Co-Chair Josephson  also received  the notice. He  asked Mr.                                                                    
Painter to address the committee.                                                                                               
                                                                                                                                
ALEXEI  PAINTER,  DIRECTOR,  LEGISLATIVE  FINANCE  DIVISION,                                                                    
answered  there was  nothing in  the  current language  that                                                                    
would require it.                                                                                                               
                                                                                                                                
Representative Hannan asked if it  would be helpful or would                                                                    
muddy the waters.                                                                                                               
                                                                                                                                
Co-Chair Josephson  thought Mr. Painter  would say it  was a                                                                    
policy call.                                                                                                                    
                                                                                                                                
Mr. Painter agreed.                                                                                                             
                                                                                                                                
3:00:42 PM                                                                                                                    
                                                                                                                                
Mr. Schroeder looked at page  60, Section 13, which included                                                                    
intent  language  related  to full  actuarial  rate  without                                                                    
relying on lapsing funding.                                                                                                     
                                                                                                                                
Co-Chair Josephson noted  there were perhaps 12  more of the                                                                    
items.                                                                                                                          
                                                                                                                                
3:02:24 PM                                                                                                                    
                                                                                                                                
Mr. Schroeder remarked on the  section related to the fix to                                                                    
the Power Cost Equalization (PCE)                                                                                               
                                                                                                                                
Representative Bynum asked why there was a proposed change.                                                                     
                                                                                                                                
Mr. Schroeder deferred to Mr. Painter.                                                                                          
                                                                                                                                
Mr. Painter stated that the  governor's language stated that                                                                    
it  not  exceed  another  amount,  so it  was  not  a  valid                                                                    
appropriation  because  it  gave  too  many  guidelines.  He                                                                    
stated that the draft included a formula.                                                                                       
                                                                                                                                
Representative  Bynum  surmised  it   was  creating  the  40                                                                    
percent value.                                                                                                                  
                                                                                                                                
Mr. Painter agreed.                                                                                                             
                                                                                                                                
3:04:43 PM                                                                                                                    
                                                                                                                                
Mr. Schroeder  remarked that the  next section  amended from                                                                    
$40,000 to $80,000 in the  arts license plates. He turned to                                                                    
page 65,  which modified  to specify the  calculation should                                                                    
be 60  percent and not to  exceed $3 million. The  next item                                                                    
was in the red line version.                                                                                                    
                                                                                                                                
Co-Chair Josephson stated it pertained to abandoned cars.                                                                       
                                                                                                                                
Mr. Schroeder agreed.                                                                                                           
                                                                                                                                
3:08:35 PM                                                                                                                    
                                                                                                                                
Mr.  Schroeder turned  to Section  27, subsection  (q) which                                                                    
was  intended  to  accurately reflect  the  portion  of  the                                                                    
restorative justice fund.                                                                                                       
                                                                                                                                
Co-Chair Josephson WITHDREW the OBJECTION.                                                                                      
                                                                                                                                
There  being NO  further OBJECTION,  Work Draft  34-GH1462\I                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT  the  proposed  committee                                                                    
substitute  for   HB  55,  Work  Draft   34-GH1459\I  (Marx,                                                                    
3/11/25).                                                                                                                       
                                                                                                                                
Co-Chair Josephson OBJECTED for discussion.                                                                                     
                                                                                                                                
Co-Chair Josephson asked his staff  to review the changes in                                                                    
the CS.                                                                                                                         
                                                                                                                                
Mr. Schroeder reviewed  the changes to HB 55.  There were no                                                                    
changes to the language section.  He reviewed the changes to                                                                    
the numbers section.                                                                                                            
                                                                                                                                
Co-Chair Josephson WITHDREW the OBJECTION.                                                                                      
                                                                                                                                
There  being  NO  OBJECTION,   Work  Draft  34-GH1459\I  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
HB  53  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  55  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Josephson handed the gavel to Co-Chair Foster.                                                                         
                                                                                                                                
3:14:39 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  reviewed  the  remainder  of  the  meeting                                                                    
agenda.