Legislature(2017 - 2018)SENATE FINANCE 532
04/15/2017 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB23 | |
| HB141 | |
| SB80 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 4 | TELECONFERENCED | |
| + | HB 56 | TELECONFERENCED | |
| + | SB 37 | TELECONFERENCED | |
| + | SB 80 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 23 | TELECONFERENCED | |
| += | HB 141 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 15, 2017
1:01 p.m.
1:01:25 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 1:01 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Shelley Hughes
Senator Peter Micciche
Senator Donny Olson
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
Juli Lucky, Staff, Senator Anna MacKinnon; Senator John
Coghill, Sponsor; Lisa Weissler, Staff, Representative Andy
Josephson; Sylvan Robb, Office of Management and Budget,
Office of the Governor; Kelly Howell Director,
Administrative Services, Department of Public Safety;
Michele Michaud, Chief Health Official, Division of
Retirement and Benefits, Department of Administration; Greg
Cashen Deputy Commissioner, Department of Labor & Workforce
Development; Paloma Harbour, Director, Division of
Administrative Services, Department of Labor and Workforce
Development; Mary Aparezuk Schlosser, Staff, Representative
Zach Fansler; Senator Mia Costello, Sponsor; Sorcha
Hazelton, Staff, Senator Mia Costello.
PRESENT VIA TELECONFERENCE
Norman Rokeberg, Commissioner, Regulatory Commission of
Alaska.
SUMMARY
SB 80 TELECOMMUNICATIONS: DISABLED SUBSCRIBERS
CSSB 80(L&C) was REPORTED out of committee with
"no recommendation" and with previously published
zero fiscal note: FN 1(CED).
CSHB 23(FIN)
INS. FOR DEPENDS. OF DECEASED FIRE/POLICE
SCS CSHB 23(FIN) was REPORTED out of committee
with a "do pass" recommendation and with a new
zero fiscal note from the Department of
Administration, a new fiscal note from the
Governor's Office, and a previously published
zero fiscal note: FN 2(DPS).
HB 141 AK WORKFORCE INVESTMENT BOARD;FUNDS
SCS CSHB 141(FIN) was REPORTED out of committee
with a "do pass" recommendation and with three
new fiscal notes from the Department of Labor and
Workforce Development, one new fiscal note from
the Department of Education and Early
Development, and one new fiscal note from the
University of Alaska.
CS FOR HOUSE BILL NO. 23(FIN) am
"An Act creating a fund in the Department of Public
Safety; providing for payment of certain medical
insurance premiums for surviving dependents of certain
peace officers or firefighters who die in the line of
duty; relating to contributions from permanent fund
dividends to the peace officer and firefighter
survivors' fund; and providing for an effective date."
1:02:45 PM
Vice-Chair Bishop MOVED to ADOPT the proposed committee
substitute for CSHB 23(FIN)am, Work Draft 30-LS0258\N
(Wayne, 4/14/17).
Co-Chair MacKinnon OBJECTED for DISCUSSION.
1:03:01 PM
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, looked at the
"Overview" (copy on file):
Overview: SCS HB 23 (FIN) creates the peace officer
and firefighter survivors' fund to pay medical
insurance premiums to continue health insurance
coverage for an eligible surviving spouse or dependent
child of a peace officer or firefighter killed in the
line of duty. The benefit is only available to a
surviving dependent of a permanent, full-time employee
who was covered by employer-sponsored medical
insurance at the time of death. The premium payments
will allow surviving dependents to remain in their
current health plan and are paid to the applicable
employer medical insurance provider.
The state is required to pay the benefit for state
employees; a municipality may elect to participate by
entering into an agreement with the state to pay the
cost of the program for its recipients. By December 1,
the commissioner of public safety will determine the
amount needed to pay the premiums and associated
administrative costs. Once appropriated, funds do not
lapse and can be spent without further appropriation.
A surviving dependent is "presumed eligible" for 60
days after the death of the peace officer or
firefighter, to allow time for the dependent to get
documents together and apply for the benefit. Within
30 days of the application, the commissioner shall
determine eligibility; which is reconfirmed annually.
Surviving spouses are eligible to receive the benefit
for 10 years, until eligible to receive other major
medical coverage, or until eligible for Medicare. If
a surviving spouse is the parent of an eligible child,
the spouse can continue to receive the benefit until
the child is no longer eligible.
Except for a child who is totally and permanently
disabled, a surviving child is eligible to receive the
benefit until eligible to receive other major medical
coverage or age 26.
Surviving dependents who become ineligible due to
receiving other major medical coverage can reapply for
benefits if that coverage is lost.
The definition of "peace officer" is identical to the
definition in CS SB 48 (STA).
The fund is eligible for donations through "Pick,
Click, Give."
Ms. Lucky also looked at the "Major Policy Differences"
(copy on file), which talked about the differences between
the versions of the bills.
Co-Chair MacKinnon stressed that she hoped that the bill
was a collaboration of efforts between the entire
legislature and public.
1:09:46 PM
SENATOR JOHN COGHILL, SPONSOR, remarked that the ten-year
limit was an important addition. He also stated that the
medical coverage death benefit was appropriate. He felt
that the "sticking point" would be the municipal opt-in. He
encouraged the committee to include that opt-in.
Co-Chair MacKinnon wondered whether Senator Coghill was in
opposition to the committee substitute.
Senator Coghill replied that he would approve the committee
substitute.
Co-Chair MacKinnon queried comments from Representative
Josephson's staff.
1:11:17 PM
LISA WEISSLER, STAFF, REPRESENTATIVE ANDY JOSEPHSON,
expressed appreciation on the work on the bill. She stated
that Representative Josephson supported requiring
municipalities to provide coverage to their employees. He
supported all the other provisions.
Senator Olson queried the seriousness of the opt-in issue.
Ms. Weissler replied that Representative Josephson would
discuss the issue with the members of the House.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, the proposed committee substitute was
adopted.
Vice-Chair Bishop MOVED to ADOPT Amendment 1 (copy on
file):
Page 3, line 6:
Delete "spouse"
Insert "dependent"
Page 3, line 7, following "(c)(2)":
Insert "or (d)(1)"
Co-Chair MacKinnon OBJECTED for DISCUSSION.
Ms. Lucky explained the amendment.
Co-Chair MacKinnon WITHDREW the OBJECTION. There being NO
further OBJECTION, Amendment 1 was adopted.
1:14:57 PM
SYLVAN ROBB, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE
GOVERNOR, explained the fiscal note.
Co-Chair MacKinnon wondered whether the $70,100 would
continue through FY 23 with an estimated cost of coverage
of $70,100 per year. Ms. Robb replied in the affirmative.
1:17:48 PM
KELLY HOWELL DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF PUBLIC SAFETY, explained the fiscal note.
Co-Chair MacKinnon wondered whether there was someone to
discuss the Department of Administration (DOA) fiscal note.
Senator Hughes asked whether the medical insurance premiums
would remain flat. Ms. Howell replied that the language
required that the commissioner determine the amount of
funding available. She stated that they would monitor a
possible increase, and factor those costs into any future
budget requests. She stated that the current amount was the
only known amount.
1:20:22 PM
MICHELE MICHAUD, CHIEF HEALTH OFFICIAL, DIVISION OF
RETIREMENT AND BENEFITS, DEPARTMENT OF ADMINISTRATION,
explained that it was a zero fiscal note. There was only
one change in the narrative as related to the community
opt-in.
1:20:50 PM
AT EASE
1:22:58 PM
RECONVENED
1:23:15 PM
Vice-Chair Bishop MOVED to ADOPT Conceptual Amendment 2
(copy on file):
The intent ofthis amendment is to allow all
dependents, not just a spouse, the opportunity to
reapply for benefits if they become ineligible due to
being eligible for other insurance then subsequently
lose that insurance.
Page 3, line 31, following "becomes"
DELETE "permanently"
Co-Chair MacKinnon OBJECTED for DISCUSSION.
Ms. Lucky explained the amendment.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
OBJECTION, it was so ordered. here being NO OBJECTION, it
was so ordered.
Vice-Chair Bishop MOVED to REPORT SCS CSHB 23(FIN) out of
committee with individual recommendations and attached
fiscal notes.
Senator Micciche OBJECTED. He wondered whether there was a
definition of "dependence" that covered unborn dependents.
Co-Chair MacKinnon replied in the negative. She stated that
the department would include that definition in regulation.
Senator Micciche WITHDREW the OBJECTION.
There being NO further OBJECTION, the bill moved from
committee.
SCS CSHB 23(FIN) was REPORTED out of committee with a "do
pass" recommendation and with a new zero fiscal note from
the Department of Administration, a new fiscal note from
the Governor's Office, and a previously published zero
fiscal note: FN 2(DPS).
1:26:04 PM
AT EASE
1:27:03 PM
RECONVENED
HOUSE BILL NO. 141
"An Act relating to allocations of funding for the
Alaska Workforce Investment Board; and providing for
an effective date."
1:27:49 PM
AT EASE
1:28:41 PM
RECONVENED
Vice-Chair Bishop MOVED to ADOPT Amendment 1 (copy on
file):
Page 1 Section 1 Line 6 Delete [2018]
Page 1 Section 1 Line 6 Insert 2020
Co-Chair MacKinnon OBJECTED for DISCUSSION.
Vice-Chair Bishop explained the amendment.
1:29:43 PM
GREG CASHEN DEPUTY COMMISSIONER, DEPARTMENT OF LABOR &
WORKFORCE DEVELOPMENT, introduced himself.
PALOMA HARBOUR, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT,
introduced herself.
Co-Chair MacKinnon referred to a letter from the Department
of Labor and Workforce Development (DLWD) addressing issues
at the previous days committee meeting. The issue was of
reporting, and what was available for the legislature to
evaluate the programs that were receiving benefit from the
investment. She wanted assurance that the three-year
extension would allow an accurate evaluation of the
programs and the value of the investment in the programs.
Ms. Harbour replied that the department had engaged with
the executive director of the Alaska Workforce Investment
Board. She stated that it was felt that the program could
be evaluated and determine recommendations of what would be
good suggestions on performance measure changes.
Senator Hughes supported the amendment.
Co-Chair MacKinnon wanted the information provided to the
Senate Labor and Commerce Committee.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
OBJECTION, Amendment 1 was ADOPTED.
1:32:40 PM
MARY APAREZUK SCHLOSSER, STAFF, REPRESENTATIVE ZACH
FANSLER, supported the three-year extension. She thanked
the committee.
Vice-Chair Bishop MOVED to REPORT SCS CSHB 141(FIN) out of
committee with individual recommendations and attached
fiscal notes.
Co-Chair MacKinnon OBJECTED and WITHDREW her OBJECTION.
There being NO OBJECTION, it was so ordered.
SCS CSHB 141(FIN) was REPORTED out of committee with a "do
pass" recommendation and with three new fiscal notes from
the Department of Labor and Workforce Development, one new
fiscal note from the Department of Education and Early
Development, and one new fiscal note from the University of
Alaska.
1:33:52 PM
AT EASE
1:35:06 PM
RECONVENED
SENATE BILL NO. 80
"An Act relating to telecommunications services for
certain disabled subscribers; and providing for an
effective date."
1:35:39 PM
SENATOR MIA COSTELLO, SPONSOR, explained the legislation.
She stated that the bill allowed the Regulatory Commission
of Alaska to assess a surcharge to provide technology that
met 21st century needs of the deaf, hard of hearing, and
speech disabled communities.
1:36:27 PM
SORCHA HAZELTON, STAFF, SENATOR MIA COSTELLO, explained the
Sectional Analysis. She stated that the first section made
the changes that allowed the commission to expand its
surcharge allowance. She stated that Section 2 was the
effective date.
Ms. Hazelton explained the bill:
Senate Bill 80 updates state statute to improve
technology service for Alaska's deaf, hard of hearing,
and speech impaired community. The Committee
Substitute incorporates "person first" language to
respectfully acknowledge those individuals with
disabilities.
In the early 1990s, the Legislature granted the
Regulatory Commission of Alaska (RCA) the authority to
require telephone utilities to serve the deaf, hard of
hearing, and speech impaired citizens of Alaska. These
policies allowed telephonic communication between
impacted Alaskans and those without impairment. This
is accomplished through a telecommunications relay
service (TRS) that provides interpretive service
operators to relay tele-typed, voice, or signed
messages from one party to another. The provider also
runs an equipment distribution and outreach program
allowing access to public telephone service for this
subscriber group.
Currently, the program's scope and the surcharges
which fund it are limited in statute to wired devices
like tele-type units (TTY) and CapTel telephones. This
limitation is antiquated given the expanded use of
cell phones and other technology.
RCA regulations provide for cost recovery through a
surcharge which is currently only applied to the
dwindling number of landline telephones. With a
statewide move toward wireless (mobile/cellular)
phones and Voice over Internet Protocol (VoIP)
technology, the most efficient and effective service
to this subscriber group is lacking resources from the
diminished wirelines to which a surcharge applies. SB
80 allows the RCA to provide equipment and services
that best serve the communities' needs.
This bill allows the RCA to more equitably assess the
TRS surcharge to a growing number of cell phone and
VoIP users, expand the type of telecommunication
devices and software available to disabled
subscribers, and provides for a July 1, 2017,
effective date which correlates with the operating
agreement cycle with the current TRS provider.
SB 80 modernizes and enhances services provided to
Alaskans with disabilities and allows for greater
independence and an improved quality of life.
Senator Micciche wondered if there would be an increase in
consumer's bills. Ms. Hazelton deferred to the commission.
She stated that the surcharge would be lowered, because the
base would expand.
Senator Olson queried the effect on the rural and remote
sites. Senator Costello deferred to Mr. Rokeberg.
1:43:28 PM
NORMAN ROKEBERG, COMMISSIONER, REGULATORY COMMISSION OF
ALASKA (via teleconference), spoke in support of the bill.
He pointed out that the surcharge was not a universal
access charge, but rather a telecommunications relay
service surcharge. He stated that the bill would enable the
commission to lower the surcharge by two-thirds. He
announced that there were currently over 900,000 lines in
Alaska, and only 258,000 were paying a surcharge. He stated
that the concept was to more equitably spread the charge,
and lower the cost overall.
Senator Olson queried the expected average surcharge as
compared to the current surcharge, especially for those who
were not currently paying. Mr. Rokeberg stated that the
current level was nine cents per wire line and eighteen
cents per business multi-line. He felt that the rate could
be lowered to four to five cents per line for both
residential and business. He explained that there was
currently a two-tiered system, with residents paying less
than business lines. He stated that there was a discussion
with the industry, and it appeared that the rates could be
lowered by up to 57 percent. He stressed that cellular
customers would be charged a fee that they were not
currently paying.
1:47:37 PM
Senator Olson surmised that the 600,000 individuals who
were not currently paying the surcharge would see an
increase. Mr. Rokeberg replied in the affirmative. He
stressed that the mobile and cellular users would see an
increase four to five cents per month.
Senator Olson queried the number of users in rural Alaska.
Mr. Rokeberg responded that he did not know the number as
related to geographic dispersion between cellular and
landlines.
Senator Olson assumed that some people in rural Alaska
would see an increase on their bills. Mr. Rokeberg agreed.
Senator Micciche surmised that the user currently paid 9
cents per line per month at $1.08 per line for wired
communications. Mr. Rokeberg replied that wired lines were
paying 9 cents for residential and 18 cents for multiline
businesses. The objective was to lower the overall cost to
4 cents for both residential. He stated that the
approximately 600,000 mobile phone users would see a very
small increase of 50 cents per year.
Co-Chair MacKinnon CLOSED public testimony.
1:50:58 PM
AT EASE
1:51:21 PM
RECONVENED
Vice-Chair Bishop addressed the fiscal note.
Vice-Chair Bishop MOVED to REPORT CSSB 80 (L&C) from
committee with individual recommendations and attached
fiscal note. There being NO OBJECTION, it was so ordered.
CSSB 80(L&C) was REPORTED out of committee with "no
recommendation" and with previously published zero fiscal
note: FN 1(CED).
1:53:25 PM
AT EASE
1:53:57 PM
RECONVENED
Co-Chair MacKinnon discussed the committee meeting
schedule.
ADJOURNMENT
1:54:17 PM
The meeting was adjourned at 1:54 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 23 SCS HB 23 FIN v. N.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 23 |
| HB 23 SCS HB23 FIN Overview.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 23 |
| HB 141 - DOLWD Response 2017.04.14.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 141 |
| HB 23 Amendment 2 MacKinnon.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 23 |
| HB 23 Amendment 1 MacKinnon.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 23 |
| HB 23 Support Letter Olsen.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 23 |
| HB 23 Support for Municipals Hallett.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 23 |
| HB 23 Public Testimony Dupee.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 23 |
| HB141 - Amendment 1 Bishop, Hoffman, Olson, Micciche, MacKinnon.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 141 |
| SB 80 Support Letter - Statewide Independent Living Council of Alaska.pdf |
SFIN 4/15/2017 9:00:00 AM |
SB 80 |
| HB 23 Major Policy Differences.pdf |
SFIN 4/15/2017 9:00:00 AM |
HB 23 |