05/17/2025 01:00 PM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB4 | |
| HB1 | |
| HB133 | |
| HB82 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 82 | TELECONFERENCED | |
| += | HB 133 | TELECONFERENCED | |
| += | HB 100 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 4 | TELECONFERENCED | |
| += | HB 1 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
May 17, 2025
3:44 p.m.
DRAFT
MEMBERS PRESENT
Representative Ashley Carrick, Chair
Representative Andi Story, Vice Chair
Representative Rebecca Himschoot
Representative Ky Holland
Representative Sarah Vance
Representative Kevin McCabe
Representative Elexie Moore
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Mike Prax
COMMITTEE CALENDAR
HOUSE BILL NO. 4
"An Act relating to write-in candidates for President and Vice-
President of the United States."
- MOVED HB 4 OUT OF COMMITTEE
HOUSE BILL NO. 1
"An Act relating to specie as legal tender in the state; and
relating to borough and city sales and use taxes on specie."
- MOVED CSHB 1(STA) OUT OF COMMITTEE
HOUSE BILL NO. 133
"An Act establishing a 30-day deadline for the payment of
contracts under the State Procurement Code; establishing
deadlines for the payment of grants, contracts, and
reimbursement agreements to nonprofit organizations,
municipalities, and Alaska Native organizations; relating to
payment of grants to named recipients that are not
municipalities; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 82
"An Act designating a state dinosaur; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 4
SHORT TITLE: PRESIDENTIAL WRITE-IN VOTES
SPONSOR(s): REPRESENTATIVE(s) SADDLER
01/22/25 (H) PREFILE RELEASED 1/10/25
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) STA, JUD
02/11/25 (H) STA AT 3:15 PM GRUENBERG 120
02/11/25 (H) Heard & Held
02/11/25 (H) MINUTE(STA)
05/15/25 (H) STA AT 3:15 PM GRUENBERG 120
05/15/25 (H) Heard & Held
05/15/25 (H) MINUTE(STA)
05/17/25 (H) STA AT 1:00 PM GRUENBERG 120
BILL: HB 1
SHORT TITLE: SPECIE AS LEGAL TENDER
SPONSOR(s): REPRESENTATIVE(s) MCCABE
01/22/25 (H) PREFILE RELEASED 1/10/25
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) STA, FIN
04/15/25 (H) STA AT 3:15 PM GRUENBERG 120
04/15/25 (H) -- MEETING CANCELED --
04/29/25 (H) STA AT 3:15 PM GRUENBERG 120
04/29/25 (H) Heard & Held
04/29/25 (H) MINUTE(STA)
05/08/25 (H) STA AT 3:15 PM GRUENBERG 120
05/08/25 (H) Heard & Held
05/08/25 (H) MINUTE(STA)
05/15/25 (H) STA AT 3:15 PM GRUENBERG 120
05/15/25 (H) Heard & Held
05/15/25 (H) MINUTE(STA)
05/17/25 (H) STA AT 1:00 PM GRUENBERG 120
BILL: HB 133
SHORT TITLE: PAYMENT OF CONTRACTS
SPONSOR(s): REPRESENTATIVE(s) HIMSCHOOT
03/12/25 (H) READ THE FIRST TIME - REFERRALS
03/12/25 (H) CRA, STA
03/25/25 (H) CRA AT 8:00 AM BARNES 124
03/25/25 (H) Heard & Held
03/25/25 (H) MINUTE(CRA)
03/27/25 (H) CRA AT 8:00 AM BARNES 124
03/27/25 (H) Heard & Held
03/27/25 (H) MINUTE(CRA)
04/03/25 (H) CRA AT 8:00 AM BARNES 124
04/03/25 (H) Heard & Held
04/03/25 (H) MINUTE(CRA)
04/08/25 (H) CRA AT 8:00 AM BARNES 124
04/08/25 (H) Heard & Held
04/08/25 (H) MINUTE(CRA)
04/10/25 (H) CRA AT 8:00 AM BARNES 124
04/10/25 (H) Heard & Held
04/10/25 (H) MINUTE(CRA)
04/29/25 (H) CRA AT 8:00 AM BARNES 124
04/29/25 (H) Moved CSHB 133(CRA) Out of Committee
04/29/25 (H) MINUTE(CRA)
04/30/25 (H) CRA RPT CS(CRA) NEW TITLE 4DP 2NR
04/30/25 (H) DP: HOLLAND, HALL, HIMSCHOOT, MEARS
04/30/25 (H) NR: PRAX, RUFFRIDGE
04/30/25 (H) FIN REFERRAL ADDED AFTER STA
05/15/25 (H) STA AT 3:15 PM GRUENBERG 120
05/15/25 (H) Heard & Held
05/15/25 (H) MINUTE(STA)
05/17/25 (H) STA AT 1:00 PM GRUENBERG 120
BILL: HB 82
SHORT TITLE: DESIGNATE STATE DINOSAUR
SPONSOR(s): REPRESENTATIVE(s) STAPP
02/10/25 (H) READ THE FIRST TIME - REFERRALS
02/10/25 (H) STA
05/17/25 (H) STA AT 1:00 PM GRUENBERG 120
WITNESS REGISTER
BONNIE JENSEN, Director
Division of Administrative Services
Alaska Department of Fish & Game
Juneau, Alaska
POSITION STATEMENT: Answered questions about CSHB 133(CRA).
ELLA LUBIN, Staff
Representative Rebecca Himschoot
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Himschoot,
prime sponsor, answered questions related to CSHB 133(CRA).
PAM HALLORAN, Assistant Commissioner
Central Office
Finance and Management Services
Department of Health
Juneau, Alaska
POSITION STATEMENT: Answered questions related to CSHB
133(CRA).
ERIC DEMOULIN, Finance Director
Division of Finance
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions related to CSHB
133(CRA).
DAN DEBARTOLO, Director
Central Office
Division of Administrative Services
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions pertaining to CSHB
133(CRA).
HENRY THOMPSON, Staff
Representative William Stapp
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Stapp, prime
sponsor, introduced HB 82.
PAT DRUNKENMILLER, Professor
University of Alaska Fairbanks
Fairbanks, Alaska
POSITION STATEMENT: Gave invited testimony regarding HB 82.
MIKE COONS, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in support of HB 82.
BERNARD AOTO, Staff
Representative William Stapp
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Stapp, prime
sponsor, answered questions regarding HB 82.
ACTION NARRATIVE
3:44:26 PM
CHAIR ASHLEY CARRICK called the House State Affairs Standing
Committee meeting to order at 3:44 p.m. Representatives McCabe,
Vance, Holland, Story, and Carrick were present at the call to
order. Representatives Himschoot and Moore arrived as the
meeting was in progress.
HB 4-PRESIDENTIAL WRITE-IN VOTES
3:45:33 PM
CHAIR CARRICK announced that the first order of business would
be HOUSE BILL NO. 4, "An Act relating to write-in candidates for
President and Vice-President of the United States."
3:46:02 PM
REPRESENTATIVE STORY moved to report HB 4 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HB 4 was reported out of the House
State Affairs Standing Committee.
3:46:26 PM
The committee took an at-ease from 3:46 p.m. to 3:48 p.m.
HB 1-SPECIE AS LEGAL TENDER
3:48:02 PM
CHAIR CARRICK announced that the next order of business would be
HOUSE BILL NO. 1, "An Act relating to specie as legal tender in
the state; and relating to borough and city sales and use taxes
on specie." [The committee adopted two amendments to HB 1 on
5/15/25.]
CHAIR CARRICK noted that during its last consideration of the
bill, the committee had queried whether the definition of
"person" included a government entity. Her office broached the
question to Legislative Legal Services, which responded with a
memorandum [included in the committee file] advising that
governmental entities are not expressly included nor excluded
from the definition of "person" in the proposed legislation. To
address the concern, she said her office drafted an amendment.
CHAIR CARRICK began a motion but paused to call an at-ease.
3:50:38 PM
The committee took a brief at-ease at 3:50 p.m.
3:50:48 PM
CHAIR CARRICK moved to adopt [Conceptual] Amendment 3 to HB 1,
[as amended], [a handwritten amendment in the committee file],
which read as follows [original punctuation provided]:
Page 3 line 8 following "person"
Insert: "or governmental entity"
3:51:28 PM
REPRESENTATIVE VANCE objected for the purpose of discussion.
3:51:43 PM
REPRESENTATIVE MCCABE considered the amendment to be a friendly
amendment to HB 1. He said that definitions can often be
ambiguous, and the proposed amendment would make the bill
stronger.
3:52:08 PM
REPRESENTATIVE HOLLAND said that he supported the amendment,
especially given discussions in previous bill hearings. The
proposed amendment would address the Alaska Municipal League's
(AML's) concerns regarding whether government agencies would be
required to accept gold and silver specie as tender.
3:52:36 PM
REPRESENTATIVE VANCE withdrew her objection. There being no
further objection, Conceptual Amendment 3 was adopted.
3:52:57 PM
REPRESENTATIVE MCCABE expressed hope that the committee received
information pertaining to the proposed bill. He said that this
was the fourth or fifth year that this bill concept has been in
legislative works. He said that considerable research was made
on the bill topic, including clarification of any tax
implications that were part of AML's concerns in the committee's
previous bill hearing.
3:53:52 PM
REPRESENTATIVE VANCE commented that she was unsure why she was
not yet listed as a co-sponsor for HB 1, as amended, indicating
that she would be soon. She said that one of the basic
functions of government is to provide a means for people to
manage their money and assets. She said that formalizing gold
and silver as legal tender would support individuals attempting
to retain value in an uncertain fiscal climate. She often said
the value of money changes more quickly than people realize, and
having gold and silver tender as an option would provide a sense
of security for people. She remarked that Alaska was a national
leader in gold and precious metal production. She expressed
optimism about passing the proposed bill into law.
3:55:41 PM
CHAIR CARRICK commented that the amendments to the bill had made
it even stronger and with more transparent intent. She noted
that many of the concerns from previous bill hearings were
addressed. She was confident that the bill could be passed to
the next committee of referral, the House Standing Committee on
Finance. Chair Carrick said that one reason that she was
supportive of the proposed legislation was because she
understood the sales tax dynamics. Furthermore, she said that
many Alaskans are currently using this type of tender as a
barter item, with no consumer protection in place. She said
that having a definition of specie would provide some
transactional protection. She understood the difference of
opinion regarding the proposed legislation, and remarked that
the committee had done a good job of addressing concerns.
3:58:21 PM
REPRESENTATIVE STORY said that she appreciated the information
made available to the committee [included in committee file].
She said that one of her outstanding questions pertained to
potential premiums charged when buying specie, and asked for
what a typical premium might be.
REPRESENTATIVE MCCABE replied that if specie were purchased
online from JM Bullion, it would be like purchasing any coin
online. There would be a precious metal spot price and a
premium attached. He reiterated that it would be similar when
changing United States Dollars (USD) at a foreign hotel. He
said that this is covered in the bill with reference to the
"melt value" of the gold and silver tender. He said Mr. Diaz
provided some clarifying information to the committee on this
topic [included in committee file].
4:00:14 PM
CHAIR CARRICK remarked that this was a good question to continue
discussions, since it was an outstanding concern regarding the
proposed legislation.
4:00:44 PM
REPRESENTATIVE HOLLAND said that he enjoyed this bill discussion
very much and enjoyed the opportunity to work with
Representative McCabe, the prime sponsor of the proposed
legislation. He reminded the committee that the value of the
USD fluctuates every day, and mentioned gas stations as an
example. He said that it was important to recognize that there
is already a system of money in place that is prone to
fluctuations.
4:01:46 PM
REPRESENTATIVE STORY remarked that she appreciated the consumer
protection associated with the proposed legislation, but it was
important for the public to understand any attached premiums
when purchasing specie.
4:02:15 PM
REPRESENTATIVE HOLLAND moved to report HB 1, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 1(STA) was
reported out of the House State Affairs Standing Committee.
4:02:54 PM
The committee took an at-ease from 4:03 p.m. to 4:06 p.m.
HB 133-PAYMENT OF CONTRACTS
4:06:14 PM
CHAIR CARRICK announced that the next order of business would be
HOUSE BILL NO. 133, "An Act establishing a 30-day deadline for
the payment of contracts under the State Procurement Code;
establishing deadlines for the payment of grants, contracts, and
reimbursement agreements to nonprofit organizations,
municipalities, and Alaska Native organizations; relating to
payment of grants to named recipients that are not
municipalities; and providing for an effective date." [Before
the committee was CSHB 133(CRA).]
CHAIR CARRICK remarked to the committee that she would like to
act on CSHB 133(CRA) early in the next legislative session. She
remarked that several testifiers were available to address any
questions or concerns regarding contract payments.
4:07:43 PM
CHAIR CARRICK, in response to Representative Vance, clarified
that the version of the bill before the committee was the one
that came out of the previous committee of referral.
4:09:05 PM
REPRESENTATIVE HIMSCHOOT, as prime sponsor, recommended that the
committee hear from invited testifiers, who could speak about
any issues with the proposed legislation.
4:09:36 PM
REPRESENTATIVE VANCE said that she had a question for the Alaska
Department of Fish & Game (ADF&G). Referring to page 4 of the
bill, regarding federal fish disaster funding, she asked whether
this funding would constitute a grant or be considered cash
assistance to an individual. She noted her reference was to
language found on page 4, [line 22], [subparagraph] (H): "state
funding that is required annually and is calculated through a
formula set in statute". She asked whether the proposed
legislation would impact federal fishery disaster funding that
comes into Alaska.
4:10:47 PM
BONNIE JENSEN, Director, Division of Administrative Services,
Alaska Department of Fish & Game, responded that the proposed
legislation would impact all federal pass-through funding that
ADF&G receives. She believed that fishermen receive funds
directly, but she would follow up with a concise answer.
REPRESENTATIVE VANCE requested a follow-up answer to the
committee during the interim regarding these designations. She
said that the proposed bill suggests that a grant does not
include cash assistance to an individual. She wanted to know
the legal stipulations associated with the distinctions between
cash assistance and grant funding. She did not know the legal
definitions pertaining to this. She said some of her fishing
constituents felt that their funds were not delivered in a
timely manner.
MS. JENSEN responded that ADF&G would be happy to follow up to
clarify the distinction.
CHAIR CARRICK told Ms. Jensen that if she had any additional
comments regarding the bill, the committee would be happy to
hear them.
4:15:07 PM
REPRESENTATIVE HOLLAND said he anticipates that the committee
will be looking into many of these issues during the interim,
and then resuming discussions in the next legislative session.
He said that understanding the workflow dynamic regarding
payment processing was imperative to understanding the current
payment issues. He said that he hoped that the upcoming annual
budget would recognize this issue and efforts could be made to
address prompt payment issues.
REPRESENTATIVE HOLLAND wondered whether these prompt payment
complications were department to department or whether there
were systematic issues related to software use and tools used in
the workflow. He understood that some departments were actively
taking steps to improve their workflow. He said that
understanding what steps of improvement were in place, and
developing plans were an important area of consideration during
the upcoming interim period.
4:17:44 PM
REPRESENTATIVE STORY said that it would help to have some
baseline data available for discussions in the upcoming
legislative session, to better understand payment dynamics. She
remarked on the importance of understanding late fees and
interest associated with delayed payments. She raised concern
about the 10.5 percent interest rate associated with late
payments, and that it would be good to know the extent of the
interest fees. She said that understanding this would better
help address the nonprofit and tribal entities sector.
4:18:44 PM
REPRESENTATIVE HIMSCHOOT invited her staff, Ella Lubin, to
address Representative Story's concern regarding late payment
fees and interest.
4:19:37 PM
ELLA LUBIN, Staff, Representative Rebecca Himschoot, Alaska
State Legislature, on behalf of Representative Himschoot, prime
sponsor of CSHB 133(CRA), responded that there was not adequate
information to fully address Representative Story's question
regarding late payment fees. She remarked that before
introducing the bill, Representative Himschoot's office reached
out to the Department of Transportation & Public Facilities
(DOT&PF) regarding work with private contractors for public
works projects. She reminded the committee that private
contractors are entitled to prompt payments as required by
Alaska Statute (AS). She said that the office has not heard
much from private contractors, but there were anecdotal stories
regarding late payments. She explained that it was difficult to
compare the private sector to nonprofit, tribal, and municipal
entities because of differences in cash reserves.
4:21:10 PM
REPRESENTATIVE HIMSCHOOT remarked that some private contractors
are hesitant to answer questions regarding late payments, since
they don't want to get in trouble with the State of Alaska
(SOA). She said that information has been difficult to acquire.
4:21:48 PM
REPRESENTATIVE VANCE asked Representative Himschoot whether she
has looked at any potential clogs regarding federal pass-through
funding with various SOA departments. She was thinking about
[the Fishery Improvement to Streamline untimely regulatory
Hurdles post Emergency Situation] (FISHES) Act passed by
Congress, and regarding federal fishery disaster funding, it was
determined that this money touched the federal Office of
Management and Budget (OMB) at least fifteen times. She said
that this was a clog regarding getting funds to recipients. She
said that some fishermen have waited up to eight years to
receive funding. She said that many fishermen were mad at SOA,
but when tracing the funding stream, the federal OMB was an area
of clogging. She said that the FISHES Act was cutting down the
funding delivery timeline by identifying the bureaucratic clogs.
REPRESENTATIVE VANCE asked Representative Himschoot whether,
given her research on this, she has been able to determine where
the clogs might be to make changes in statute or regulation.
MS. LUBIN answered that the Department of Health (DOH) could
address this type of question, given its experience working with
Medicaid reimbursements and federal money. Much of this passes
through SOA to support nonprofit groups.
4:24:10 PM
PAM HALLORAN, Assistant Commissioner, Central Office, Finance
and Management Services, Department of Health, said that
Medicaid payments for the most part were efficient, with
automatic processes in place. She said there are times when
vendors use contractors that can cause issues; however, she
opined that Medicaid payments were fairly streamlined.
4:25:11 PM
REPRESENTATIVE VANCE said that she was looking at the six fiscal
notes from DOH, and each one requested an additional staff
member to assist with Medicaid processing. She said that these
obligations have always existed for the department, and asked
whether there was anything else other than "manpower" that might
be considered when building a more efficient process.
MS. HALLORAN responded that when the DOH evaluated their fiscal
model, they primarily looked at the timeline from the invoice
date to transaction date. This did not include specific factors
for Medicaid. She said the volume of work related to payments
within the department was substantial. Since COVID-19, DOH has
experienced an overall capacity issue. She said that staff have
been responsible for receiving invoices, approving them, and
processing payments. She said that during the pandemic many
employees were burned out.
MS. HALLORAN remarked that DOH was onboarding staff, training
them, and working to rebuild its former operational capacity.
She said that contracts, excluding Medicaid, account for
approximately $575 million and grants account for around $145
million. She said that compared to two years ago, the
department is in a much better position with both promising
prospects and improvements.
MS. HALLORAN said that DOH is considering several initiatives.
The first is examining how the department can better leverage
its accounting system to improve workflow. Additionally, the
department is exploring the procurement of a new grant
management system, like ones used by other departments. She
recognized the challenges associated with different systems
utilized across agencies. Furthermore, the department recently
implemented a system called Periscope, which supports contract
visibility and management within the department.
REPRESENTATIVE VANCE understood that DOH is responsible for many
services, but also recognized that it is associated with the
most delays. She asked whether the department had a goal it was
trying to accomplish that would increase grant distribution and
turnover.
MS. HALLORAN responded that the department did have a goal. She
said that currently the department does not see grants as much
of a problem, since most DOH grants are advanced. She said it
takes around 11 days from the initial grant agreement to process
payment. She said the department is working on both
communication and training.
4:31:38 PM
REPRESENTATIVE HIMSCHOOT asked Ms. Halloran whether the extended
effective date proposed under CSHB 133(CRA) would give the
department enough time to come into compliance with the 30-day
expectation.
MS. HALLORAN responded that she appreciated the new effective
date, which would give the department time to acquire new staff,
onboard them, and provide training. She said that the
department manages over two hundred different programs, and
training required a certain degree of specification.
REPRESENTATIVE HIMSCHOOT asked Ms. Halloran whether she felt
that the department needed more staff, or if it could meet the
30-day requirements given the extended effective date and the
current departmental budget. Furthermore, she asked for
elaboration on the work from home policy available to department
employees.
MS. HALLORAN responded that the department did have staff
working from home. However, none worked from home full-time.
She said the department prefers that staff in non-probationary
status work in office full-time, but hybrid schedules were
available to employees that pass the probationary period and
receive supervisory permission.
MS. HALLORAN said that the department would need to look at the
new effective date, and check on both funding and staffing to
ensure that the timeline could be met.
4:35:05 PM
REPRESENTATIVE STORY remarked that it was difficult to assess
the extent of payment issues, since the committee did not hear
from any private contractors about what issues they may be
experiencing. She asked where there might be data that could
illustrate payments better, including any penalties.
4:36:05 PM
ERIC DEMOULIN, Finance Director, Division of Finance, Department
of Administration, responded that he could get some baseline
data prepared to illustrate payment dynamics. He explained that
in the state's accounting systems, there is a lot of variability
in terms of how payments are made across the state, because each
agency has the authority to spend funds. When looking at the
accounting system, he remarked that there are a lot of different
ways that agencies conduct their internal processes that best
fit their business. He noted that the invoicing system had a
universal field that could have data pulled for illustration.
He informed the committee that there may be potential
shortcomings to any pulled data. He said this is important to
understand when building efficiencies and establishing baseline
data, especially with grants.
MR. DEMOULIN said that there are several approaches that can be
taken to extrapolate grant-related information. He explained
that most grants managed across the state are tied to the
Department of Administration and tracked through chart-of-
account elements within the accounting system. He said that by
leveraging these elements, expenditures can be traced back to
their posting points and corresponding payments. He said that
while the technical details are complex, the key point is it can
paint a clear picture of grant activity in the state.
MR. DEMOULIN remarked that it was critical to outline any
deficiencies in the data used as a starting point. Doing so
would allow for better informed recommendations when improving
the processes. This effort should be viewed holistically, with
the goal of strengthening the state's overall approach to grant
management and reporting.
REPRESENTATIVE STORY asked whether there would be a column that
could identify late payment penalties.
MR. DEMOULIN responded that when looking at the state's
accounting system, there were object codes that could highlight
expenditure type, this could illustrate penalties or fines. He
explained that the codes were freeform fields and, as a result,
the integrity of any object code was not guaranteed and would
need careful review.
MR. DEMOULIN explained that when paying a vendor, the system
typically requires the use of multiple object codes to identify
costs. He said if an invoice is late and includes penalties,
the payment should be itemized to distinguish between service
expense and the fine. He said that without these distinctions,
the entire payment could be recorded under a single category,
which would obscure the true nature of the expenditure.
REPRESENTATIVE STORY asked whether Mr. DeMoulin had a sense of
how large the problem was regarding late payments from SOA.
MR. DEMOULIN responded that anecdotally he could not speak about
the issue. However, he noted that when looking at late
payments, there's a variety of reasons that they occur across
different state agencies. He pointed out the previous
testimonies regarding employee turnover and departmental
training. He said that until preliminary figures are collected,
he could not fully speak to the extent of the late payment
problem.
4:41:23 PM
CHAIR CARRICK remarked that a lot of the private contracts that
SOA pays to companies occur within the Department of Labor &
Workforce Development (DLWD), and the Department of
Transportation & Public Facilities (DOT&PF).
CHAIR CARRICK wished to understand what approach would be most
appropriate for payments. She inquired about whether most
private contractor payments were made in 30 days, and how
frequently payments lapsed past the 30-day period.
MR. DEMOULIN responded that he has worked on the finance side of
things for SOA for quite some time. He noted that he worked at
DLWD as a division operations manager for about a year, and then
as a finance officer for DOH. He said that he can speak only
about these experiences.
MR. DEMOULIN said SOA is always working toward the goal of
paying everybody as quickly as possible. He said that the
current method of payment is something that he does not view as
a deterrent. He said that he has never seen current methods
prioritize one payment over the other. He said the intent
always has been timely payment prioritization. He said that
delays are often caused by underlying issues.
CHAIR CARRICK asked for clarification of how frequent payments
to private contractors lapse.
MR. DEMOULIN responded that preliminary numbers would need to be
run to give a concise answer.
CHAIR CARRICK said that she wanted to hear testimony from Dan
DeBartolo with DLWD, since the department is a bit smaller and
he may have some anecdotal data regarding the extent of payment
lapses with private contractors.
4:45:20 PM
DAN DEBARTOLO, Director, Central Office, Division of
Administrative Services, Department of Labor and Workforce
Development, responded that when looking at the fiscal note
submitted by DLWD, there was indication that the department
experiences approximately $4,200 in interest charges from late
payments. He said that he extrapolated that information by
looking at the point in time when the department was late paying
invoices to contractors. He approximated that the department is
around 95 percent effective, accruing around $400 a month in
penalty fees.
MR. DEBARTOLO noted that as Mr. Demoulin had indicated, the
departments strive to meet 30-day deadlines for payment. He
said he does not believe that there is a systemic issue. He
said when using a first-in, first-out approach, sometimes people
responsible at the back end may be out and unable to process
payments. He said that departments can be caught in this type
of situation.
MR. DEBARTOLO said that at DOLWD, he did not see that anything
was being solved except for continuing to put forward the best
effort, as indicated on the fiscal note. He believed the
provisions are reasonable and every contractor should expect
payment within 30 days of submitting an invoice.
MR. DEBARTOLO explained that one concern with private
contractors is that DOLWD has entire divisions that are almost
100 percent federally funded. He said that if the state is
required to pay penalties, SOA cannot use federal funds to pay
penalties.
CHAIR CARRICK asked Mr. DeBartolo whether he could provide a
contrast of private contractor payments with non-private
entities included in CSHB 133(CRA).
MR. DEBARTOLO responded that grants are interesting, and many of
them went through DLWD's Workforce Investment Board and the
department's grant section. He explained the "reappropriation
period" occurs when a fiscal year ends and a new one begins,
typically around July 1 to the end of August. He discussed the
dynamics associated with closing out grants from the previous
fiscal year. He mentioned that many grantees reapply annually,
and if there are any performance issues, they are placed on
performance improvement plans. He said that this can affect
grant dynamics.
MR. DEBARTOLO noted for DLWD, often grant payments are not made
in the first 30 to 45 days of the new fiscal year. He explained
that grantees first submit requests for payments, typically
monthly or quarterly. He said that when getting requests during
the reappropriation period, the department often cannot process
grants quickly enough, which consequently can accrue interest
for SOA. He explained that the transition during the
reappropriation period can be challenging but otherwise the
department remains timely throughout the rest of the fiscal
year.
4:50:07 PM
REPRESENTATIVE MCCABE remarked that when looking through the
DHSS fiscal notes, there were a couple of things that he had not
seen before. He said that a bill with six different fiscal
notes was interesting. He remarked that looking at the fiscal
notes, he thought the department understood how far in arrears
they were, since they were able to calculate how much money it
would cost them given the 10.5 percent interest rates for late
payments. He said that if all the fiscal notes came to
fruition, and the department was not appropriated $909,000 for
the increased staff, then there could be as much as $1.55
million in interest payments. He described late payment
averages amongst departmental services: 73-day average for
department support services; 42-day for healthcare services; 88-
day for public assistance; 43-day for public health; 59-day for
senior disabilities; and 57-day for behavioral health. He said
that these are only averages and he would like to know what the
longest delay was. He said that an 88-day delay for public
assistance is a long time for a single mom with three kids. He
reiterated that the fiscal notes concerned him, and this was
something that needed further investigation.
4:52:42 PM
CHAIR CARRICK remarked that the committee needed to understand
the correlation between vacancy rates and timely processing of
payments. She said that the correlation between length of time
an employee had been staffed and late payment was worth
consideration as well.
4:53:24 PM
REPRESENTATIVE HIMSCHOOT offered to the committee that she
planned to work on the proposed legislation during the interim
period. She said that the departments have been responsive and
intend to solve any issues.
4:53:53 PM
REPRESENTATIVE HOLLAND remarked that he learned about some
process improvement projects currently underway in SOA from
previous meetings in other committees. He said that while many
of these projects focused on process improvements, they do not
pertain to grants but may be worth looking consideration.
REPRESENTATIVE HOLLAND said that rather than doubling down and
hiring more people to "Band-Aid" a process that is not working
well, there may be other approaches focused on process
improvement, efficiency building, and better technology. He
said there have been previous discussions regarding the
possibility of integrating new technology tools to ease the
burden of some "chronically unfilled" SOA positions. He asked
whether there was a current project that could illustrate
process improvement and whether it could help the committee
think differently about the issue.
MR. DEMOULIN responded that it was an open-ended question, but
he affirmed that there is an opportunity to leverage some
technologies. He echoed Ms. Halloran's previous comments,
mentioning both Periscope and looking at another grant
management system while also collaborating with other
departments.
MR. DEMOULIN remarked that when looking at the process of
approval or ensuring eligibilities for grantees, there is a lot
of manual work involved. He said that streamlined processes
could be built by leverages systems. For example, within a
grant management system, if robust enough, grant managers
working for SOA could authorize and validate that work was
completed and then process reimbursements. He said the system
could talk directly to accounting for payment processing rather
than rely on physical data entry and routing. He said this
would eliminate some current workflows.
MR. DEMOULIN said that when looking at building efficiencies
across the state, it has been mentioned that various agencies
have different grant management systems. He said each agency
collaborates with federal partners in various manners. For
instance, Federal Emergency Management Agency (FEMA) grants go
to SOA's [Division] of Motor Vehicles (DMV); health grants from
the U.S. Department of Homeland Security (DHS) go to SOA's DOH;
and U.S. Department of Transportation grants go to SOA's DOT&PF.
He said that these agencies are responsible for managing and
receiving funds, with many grant programs procured based on
departmental needs rather than through a statewide procurement
system. He said that SOA has received federal funds for many
years, and some of the operational processes have existed for
quite some time.
MR. DEMOULIN said that SOA could look at building potential
synergies and shared technologies. He understood that some
grant management systems are specifically tailored depending on
grant type. He said that given conversations with other
departments, it may be worthwhile attempting to build
interdepartmental synergies.
4:59:45 PM
REPRESENTATIVE VANCE appreciated the sponsor of the proposed
legislation. She said that when first looking at the proposed
legislation, it seemed like a simple compliance bill, but it was
not. She mentioned that audits completed by the Joint Committee
on Legislative Budget & Audit were a great resource for looking
at recommendations. She noted that the Department of
Administration (DOA) had made considerable strides for the year,
and strides that SOA had been waiting for. She remarked on the
challenges associated with staffing turnover, including in her
experience working at the legislature. She said that every
department has seemed to face this challenge since the COVID-19
pandemic.
REPRESENTATIVE VANCE asked Mr. Demoulin whether there has been
any success in raising salaries for certain positions to acquire
someone who brings more experience, and if it has provided value
to the department regarding timeliness and efficiency. She also
said that perhaps the jobs were unique enough that it may not
matter, since there may be a learning curve regardless.
MR. DEMOULIN responded that both factors are at play. He said
that organizations have proprietary systems, and even given
somebody with experience there would be learning curves.
However, more experienced hires may learn these systems faster.
He opined that when looking at salaries, it was important not to
overpay but, at the same time, pay fairly.
MR. DEMOULIN said that regarding the different systems across
the state, there is an additional cost for differences.
However, he said that if SOA had a single system, there would be
a new learning curve for state staff.
REPRESENTATIVE VANCE remarked that hiring new people and
training them often has higher costs than paying experienced
people more. She remarked that finding this balance was
crucial.
5:05:16 PM
REPRESENTATIVE MCCABE said that in the interest of brevity, he
would hold his additional questions.
5:05:36 PM
REPRESENTATIVE STORY thanked those who were available for
testimony during the committee meeting.
CHAIR CARRICK remarked on directing committee questions to the
bill sponsor's office or the departments. She remarked that the
department personnel have shown a willingness to answer
committee questions, and she wished for the committee to reopen
this legislation during the next legislative session.
CHAIR CARRICK announced that CSHB 133(CRA) was held over.
HB 82-DESIGNATE STATE DINOSAUR
5:06:56 PM
CHAIR CARRICK announced that the final order of business would
be HOUSE BILL NO. 82, "An Act designating a state dinosaur; and
providing for an effective date."
5:07:35 PM
HENRY THOMPSON, Staff, Representative William Stapp, Alaska
State Legislature, on behalf of Representative Stapp, prime
sponsor, introduced HB 82. He said that the proposed
legislation would establish the Nanuqsaurus as Alaska's state
dinosaur. The Nanuqsaurus was discovered in the Prince Creek
formation of the North Slope by the scientific community in
2014. He said that Nanuqsaurus was a theropod, quite large and
in the same family as the Tyrannosaurus Rex. Some believe that
this dinosaur had feathers as well. He remarked that Dr. Pat
Drunkenmiller, accomplished paleontologist and director of the
University of Alaska Museum of the North, was available for
testimony.
CHAIR CARRICK noted that the committee would hear invited
testimony.
5:09:24 PM
PAT DRUNKENMILLER, Professor, University of Alaska Fairbanks,
Gave invited testimony regarding HB 82. He appreciated
Representative Stapp's office for its interest and recognition
of the research and work conducted by the University of Alaska
Fairbanks regarding fossils and paleontology. He explained that
the Nanuqsaurus was Alaska's only Tyrannosaurus and belonged to
a larger group of dinosaurs known as Tyrannosaurids, the most
famous of which is the Tyrannosaurus Rex, which is not found in
Alaska. He said that the Nanuqsaurus was discovered in the
Prince Creek formation of the North Slope in 2014 and was among
around 13 or 14 different types of dinosaurs that have been
discovered from that formation. He said that the formation
dates back about 73,000,000 years, when Alaska was farther north
than it is today. He said that Nanuqsaurus is among the
northernmost dwelling dinosaurs that ever lived on earth and was
one of four named dinosaurs from Alaska; he suggested that more
would be named in the future.
DR. DRUNKENMILLER remarked that Nanuqsaurus was the "top dog"
and the apex predator in Alaska's prehistoric environment; its
diet consisted of duck-billed, horned dinosaurs and others. He
said initially Nanuqsaurus was described as a dwarf, but given
additional research it was estimated to have been around 25-30
feet in length. Furthermore, research indicates that it likely
had feathers, unlike depictions of other tyrannosaurids.
5:12:50 PM
CHAIR CARRICK opened public testimony on HB 82.
5:13:15 PM
MIKE COONS, representing self, testified in support of HB 82.
He said that after a "long grueling week," he hoped the bill
would bring some levity. He lauded Nanuqsaurus for its relation
to the feared Tyrannosaurus Rex.
5:14:35 PM
REPRESENTATIVE VANCE asked Representative Stapp, prime sponsor,
whether there were any drawings or renditions of the Nanuqsaurus
available to the committee.
5:15:09 PM
BERNARD AOTO, Staff, Representative William Stapp, Alaska State
Legislature, on behalf of Representative Stapp, prime sponsor of
HB 82, responded that the bill sponsor had a toy Nanuqsaurus and
pictures in his legislative office. He welcomed committee
members to come see.
5:15:48 PM
CHAIR CARRICK, after ascertaining there was no one else who
wished to testify, closed public testimony on HB 82.
5:15:53 PM
REPRESENTATIVE HIMSCHOOT remarked that after a quick Google
search, she learned that Nanuqsaurus was similar in appearance
to a Tyrannosaurus Rex. She asked Dr. Drunkenmiller whether he
thought that Nanuqsaurus was the appropriate candidate as a
state dinosaur. She asked whether there was an older or more
geographically diverse candidate that might be worth
consideration. She said that Ichthyosaur was also found on the
North Slope, and there were even fossils found in Southeast
Alaska. Overall, she asked for Dr. Druckenmiller's opinion on
which dinosaur he felt represented the state the best. She
suggested that the school children of Alaska could choose what
dinosaur they felt best represented the state; other states
often leave these designations to the youth.
DR. DRUNKENMILLER responded that there are number of extinct
reptiles that were known to be from Alaska, many of which were
described in a publication fifteen years ago. He noted that
Ichthyosaurs were a marine reptile that resembled a giant
dolphin and were found in multiple parts of the state. He also
described Styxosaurus, to which he said he is partial; however,
despite having a saurus suffix, was not actually a dinosaur but
belonged to a different group of reptiles.
DR. DRUNKENMILLER also described Hadrosaurs, also known as duck-
billed dinosaurs. They were known to be large, plant-eating
animals. He said that the best-known species was one from the
North Slope. He said that it would be no match for the
Nanuqsaurus, but its name was noteworthy. He explained that the
name was derived from Inupiaq and meant "ancient grazer of the
Colville River" and there was much known about the species.
DR. DRUNKENMILLER complimented the idea of getting school kids
involved in designating a state dinosaur for Alaska. He said
that the idea of a state dinosaur was not new, and the proposed
bill was not the first attempt to establish one. He commented
on a previous attempt to establish the duck-billed dinosaur as
the state dinosaur.
DR. DRUNKENMILLER remarked that currently, four dinosaur species
were classified in Alaska and work was underway to continue
classifying additional species. He noted that some species were
better documented than others. He concluded by remarking that
any of the four could be viable candidates as a state dinosaur,
but ultimately it something that the legislature must decide.
5:20:43 PM
REPRESENTATIVE HOLLAND asked Dr. Drunkenmiller about the
context, time, and environment in which Nanuqsaurus lived. He
asked for elaboration about what the North Slope looked like
relative to a modern context.
DR. DRUNKENMILLER answered that Nanuqsaurus lived during the
Cretaceous period, near the extinction event that marked the
close of the age of dinosaurs, by current estimates around 73
million years ago. He remarked that Alaska during this time did
not look as it does today. He said that Alaska was farther
north than it is today, around 10 degrees of latitude farther
north given current estimates. He explained that prehistoric
dinosaurs living in Alaska were truly polar dinosaurs, and no
others lived so far north during the age of dinosaurs.
DR. DRUNKENMILLER explained that Alaska's prehistoric dinosaurs
lived on a low, flat coastal plain before the Brooks Range had
fully formed. Unlike today's tundra, the coastal plain was
forested even as far north as it was. He said that petrified
trees are often found alongside dinosaur fossils.
DR. DRUNKENMILLER said that regarding the climate, Alaska's
North Slope was much warmer than it is today, despite being
farther north. He said that temperatures would be comparable to
what Juneau is today. He said that being so far north, these
dinosaurs would have to survive seasonal conditions that
included three-to-four months of complete winter darkness.
Nanuqsaurus would have roamed in darkness and even snowy
conditions, a context that is unlike most contemporary images of
dinosaurs as tropical creatures.
5:24:48 PM
CHAIR CARRICK commented that she thoroughly enjoyed the
opportunity to participate in classes with Dr. Drunkenmiller
during her time at the University of Alaska Fairbanks.
5:25:02 PM
REPRESENTATIVE HOLLAND asked Dr. Drunkenmiller whether the
Nanuqsaurus was still cold-blooded despite living in such a
harsh environment.
DR. DRUNKENMILLER responded that there has been a long-standing
debate about whether dinosaurs were warm-blooded like mammals
and birds or cold-blooded like modern reptiles; all dinosaurs
were reptiles. He said that given contemporary knowledge, the
understanding is that dinosaurs were much closer to being warm-
blooded. He said that having inhabited cold regions such as
Alaska only supports this hypothesis. He said that modern cold-
blooded reptiles such as crocodiles, turtles, or lizards do not
live in Alaska due to the challenges with cold weather.
DR. DRUNKENMILLER said that the scientific community was
confident that Alaska's dinosaurs were warm-blooded, and body
heat was maintained by food consumption, much like mammals do.
Additionally, there was certainty that meat-eating northern
dinosaurs such as Nanuqsaurus were feathered; an adaptation to
maintain body heat.
5:27:25 PM
MR. AOTO extended an apology to the committee on behalf of
Representative Stapp, prime sponsor, due to the inability to
attend the hearing on the proposed legislation, as he was
currently occupied with the House Finance Committee. He said
the purpose of the bill was from Representative Stapp's
experience touring the Fairbanks North Star Borough School
District. During this trip, he spoke with elementary students
about the legislature, its role, importance, and the things
legislators do. To engage students in debate, he asked students
what kind of things they liked to argue about. This
conversation sparked a lively debate about dinosaurs, which, in
turn, inspired the development of the proposed bill.
5:28:37 PM
REPRESENTATIVE STORY appreciated the context for why
Representative Stapp was interested in the proposed legislation.
She said that she supported the children's opportunity to look
at the choices and decide. She opined that it would be a
wonderful opportunity for Alaska's schoolchildren. She asked
the prime sponsor whether he would be open to a Department of
Education and Early Development (DEED) survey to both educate
schoolchildren and give them the opportunity to decide which
dinosaur would be most appropriate as the state dinosaur.
MR. AOTO responded that this was something that Representative
Stapp's office was open to.
5:29:43 PM
REPRESENTATIVE HIMSCHOOT echoed Representative Story's position
and said that this could be a wonderful opportunity for Alaska
students to learn about dinosaurs and argue which dinosaur would
be most appropriate for state designation.
5:30:24 PM
REPRESENTATIVE STORY added that students could vote on the
dinosaur, which would be a good exercise for civic engagement.
5:30:38 PM
CHAIR CARRICK announced that HB 82 was held over.
CHAIR CARRICK noted that this concluded business for the House
State Affairs Standing Committee for the legislative session.
She thanked the committee for the discussions and debate, as
well as partisan and nonpartisan staff who supported
discussions.
5:35:24 PM
REPRESENTATIVE MCCABE remarked that his office had nominated
Stuart Relay, staff to Chair Carrick, as the hardest working
staffer in the building.
REPRESENTATIVE HIMSCHOOT joked that Stuart should be awarded
with gold and silver specie.
REPRESENTATIVE VANCE thanked Chair Carrick for supporting
discussions despite any differences in partisanship and setting
an appropriate mood and tone for previous discussions.
CHAIR CARRICK noted that she would be available for any
discussions during the interim period.
5:37:30 PM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 5:37
p.m.