03/09/2017 09:00 AM Senate FINANCE

SENATE BILL NO. 22                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations and  reappropriations, and                                                                    
     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."                                                                                                        
                                                                                                                                
9:05:09 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  informed that the committee  would take up                                                                    
a  committee substitute  (CS) for  SB 22,  which would  have                                                                    
some technical changes.                                                                                                         
                                                                                                                                
Co-Chair  MacKinnon   MOVED  to  ADOPT   proposed  committee                                                                    
substitute  for  SB  22, Work  Draft  30-GS1855\D  (Wallace,                                                                    
3/2/17).                                                                                                                        
                                                                                                                                
Co-Chair Hoffman OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair  Hoffman  asked  staff  to  explain  the  technical                                                                    
changes  in the  bill. He  remarked that  the committee  was                                                                    
trying to get the  operating budget completed as effectively                                                                    
and efficiently  as possible  so as to  devote more  time to                                                                    
the piece  of legislation associated with  restructuring the                                                                    
Permanent Fund Dividend (PFD) program.                                                                                          
                                                                                                                                
9:06:33 AM                                                                                                                    
                                                                                                                                
JAMES  ARMSTRONG, STAFF,  SENATOR  LYMAN HOFFMAN,  explained                                                                    
that the  committee had  not received  the budget  bill from                                                                    
the other  body, but would  be working with  the Legislative                                                                    
Finance Division  (LFD) and Legal  Services to clean  up the                                                                    
bill. He stated that the committee  would be using SB 22 and                                                                    
SB 24  as the vehicles to  develop the budget; and  when the                                                                    
bills from  the other body  came to the committee,  it would                                                                    
make  the  corresponding  changes.   He  recalled  that  the                                                                    
committee had done  the same thing the  previous session. He                                                                    
asserted  that the  LFD  Director and  the  Director of  the                                                                    
Office of  Management and  Budget (OMB)  could speak  to the                                                                    
technical  conforming changes  that had  been made  and were                                                                    
explicated  in  the  document "Summary  of  Changes  between                                                                    
Governor's Operating Bill and CSSB22 (FIN)" (copy on file).                                                                     
                                                                                                                                
DAVID   TEAL,   DIRECTOR,  LEGISLATIVE   FINANCE   DIVISION,                                                                    
explained  that the  CS  before the  committee  was for  all                                                                    
practical purposes  the governor's bill, redrafted  in Legal                                                                    
Services  Division language  rather than  language from  the                                                                    
Department of  Law. He specified that  the bill appropriated                                                                    
the same  amount of  money for the  same purposes,  and from                                                                    
the same fund sources. He  thought it was easily discernable                                                                    
that the changes to the  bill were confined to date changes,                                                                    
rearrangements,  and  small  technical changes.  He  thought                                                                    
that the changes  would make the process easier  for LFD and                                                                    
Legal  Services, as  well  as for  the  committee. When  the                                                                    
committee developed the next CS,  it would be much easier to                                                                    
discern any substantive changes  from the rearrangements and                                                                    
other technical adjustments.                                                                                                    
                                                                                                                                
9:08:58 AM                                                                                                                    
                                                                                                                                
PAT  PITNEY,  DIRECTOR,  OFFICE OF  MANAGEMENT  AND  BUDGET,                                                                    
OFFICE  OF  THE  GOVERNOR, stated  that  the  administration                                                                    
concurred with  the changes. She  stated that the  CS before                                                                    
the  committee did  exactly what  had been  proposed in  the                                                                    
governor's budget.                                                                                                              
                                                                                                                                
Co-Chair Hoffman  WITHDREW his  objection. A roll  call vote                                                                    
was taken on the motion.                                                                                                        
                                                                                                                                
IN FAVOR: Bishop,  Dunleavy, Micciche,  von Imhof,  Hoffman,                                                                    
MacKinnon                                                                                                                       
OPPOSED:                                                                                                                        
                                                                                                                                
Senator Olson was absent from the vote.                                                                                         
                                                                                                                                
The MOTION PASSED (6/0).                                                                                                        
                                                                                                                                
There  being NO  further OBJECTION,  Work Draft  30-GS1855\D                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
SB  22  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:10:12 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:11:16 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Hoffman stated that there  was a CS to consider for                                                                    
SB 24.