Legislature(2023 - 2024)ADAMS 519

05/03/2024 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 187 APPROP: CAP; REAPPROP; SUPP TELECONFERENCED
Moved HCS CSSB 187(FIN) AM Out of Committee
+= HB 307 INTEGRATED TRANSMISSION SYSTEMS TELECONFERENCED
Moved CSHB 307(FIN) Out of Committee
+ SB 118 CRITICAL NATURAL RESOURCES; REPORTS TELECONFERENCED
Heard & Held
+ HB 177 CRITICAL NATURAL MINERALS PLAN AND REPORT TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ SB 74 PHYSICAL THERAPY LICENSURE COMPACT TELECONFERENCED
Heard & Held
+ SB 75 AUD. & SPEECH-LANG INTERSTATE COMPACT TELECONFERENCED
Heard & Held
+= HB 232 DISABLED VETERANS: RETIREMENT BENEFITS TELECONFERENCED
Moved HB 232 Out of Committee
-- Public Testimony --
+ SB 104 CIVIL LEGAL SERVICES FUND TELECONFERENCED
Heard & Held
+= HB 149 NURSING: LICENSURE; MULTISTATE COMPACT TELECONFERENCED
Heard & Held
CS FOR SENATE BILL NO. 187(FIN) am                                                                                            
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations, supplemental  appropriations, and other                                                                    
     appropriations;    making   reappropriations;    making                                                                    
     appropriations    to    capitalize   funds;    amending                                                                    
     appropriations; and providing for an effective date."                                                                      
                                                                                                                                
2:30:14 PM                                                                                                                    
                                                                                                                                
Co-Chair Edgmon  relayed that  the committee  would consider                                                                    
amendments to  the capital  budget and  would at  some point                                                                    
move  it out.  He  relayed  that the  capital  budget was  a                                                                    
product  of an  agreement between  the House  and Senate  in                                                                    
terms  of  timeline,  process,   and  funding  amounts.  The                                                                    
current  budget achieved  the parameters  of  work with  the                                                                    
other body. The amendment deadline  had been 10:00 a.m. that                                                                    
morning.                                                                                                                        
                                                                                                                                
2:31:18 PM                                                                                                                    
                                                                                                                                
Co-Chair  Edgmon began  the  amendment  process noting  that                                                                    
Amendment  1 was  his amendment.  He asked  for a  motion to                                                                    
move it.                                                                                                                        
                                                                                                                                
Co-Chair Johnson MOVED to ADOPT Amendment 1 (copy on file):                                                                     
                                                                                                                                
     DEPARTMENT: University of Alaska                                                                                           
     PROGRAM: University of Alaska Fairbanks                                                                                    
     PROJECT TITLE: Alaska Railbelt Carbon Capture &                                                                            
     Sequestration Project                                                                                                      
                                                                                                                                
     DELETE:   $2,200,000 UGF, 1004                                                                                             
                                                                                                                                
     ADD: $2,200,000 UGF/Match, 1003                                                                                            
          $8,880,00 Fed Receipts, 1002                                                                                          
                                                                                                                                
                                                                                                                                
     EXPLANATION:   This  is a  technical  fix. The  federal                                                                    
     receipts for  this project were  inadvertently omitted.                                                                    
     This   amendment  restores   the   federal  match   and                                                                    
     correctly classifies the $2.2 million in UGF as match.                                                                     
                                                                                                                                
Representative Stapp OBJECTED for discussion.                                                                                   
                                                                                                                                
Co-Chair  Edgmon   explained  the   amendment  that   was  a                                                                    
technical  fix  related  to  the   University  of  Alaska                                                                       
Fairbanks  tied to  the Alaska  Railbelt Carbon  Capture and                                                                    
Sequestration  Project. The  original budget  contained $2.2                                                                    
million  in unrestricted  general funds  (UGF). In  order to                                                                    
properly account  for the entire  package of  funding, which                                                                    
was state and federal in  nature, it was necessary to delete                                                                    
the increment  and add  $2.2 million  in UGF  matching funds                                                                    
that would  allow the inclusion  of $8.8 million  in federal                                                                    
receipt authority for a total of $11.1 million.                                                                                 
                                                                                                                                
Representative Stapp WITHDREW the OBJECTION.                                                                                    
                                                                                                                                
There being NO further OBJECTION, Amendment 1 was ADOPTED.                                                                      
                                                                                                                                
2:32:50 PM                                                                                                                    
                                                                                                                                
Representative Josephson  MOVED to  ADOPT Amendment  2 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     DEPARTMENT: University of Alaska Unassigned                                                                                
     PROGRAM: University of Alaska Fairbanks                                                                                    
     PROJECT  TITLE:   Alaska  Railbelt  Carbon   Capture  &                                                                    
     Sequestration Project                                                                                                      
                                                                                                                                
     DELETE:   $1,000,000 UGF, I 004                                                                                            
                                                                                                                                
     DEPARTMENT: Department of Transportation                                                                                   
     PROGRAM: Federal Program Match                                                                                             
     PROJECT  TITLE:  Match  Assistance  for  Local  Transit                                                                    
     Providers                                                                                                                  
                                                                                                                                
     ADD: $1,000,000 UGF, 1004                                                                                                  
                                                                                                                                
     EXPLANATION:   This  is  an Alaska  Mobility  Coalition                                                                    
     priority.  Transit  Match  Funding  would  be  used  to                                                                    
     support small community and  non-profit efforts to draw                                                                    
     down  federal infrastructure  funds for  transportation                                                                    
     assistance.                                                                                                                
                                                                                                                                
Representative Stapp OBJECTED.                                                                                                  
                                                                                                                                
Representative Josephson  explained that due to  the passage                                                                    
of Amendment  1, the  fund source on  Amendment 2  should be                                                                    
1003. The  fund source  was UGF match,  and it  would divert                                                                    
some of  the carbon  capture sequestration  project funding.                                                                    
The  amendment  pertained to  $1  million  in transit  match                                                                    
funding  for  the  Alaska  Mobility  Coalition.  He  read  a                                                                    
selection on the Alaska Mobility Coalition:                                                                                     
                                                                                                                                
     Prior to  FY 18 the  state put in general  fund capital                                                                    
     dollars  to help  transit  providers  with their  local                                                                    
     match requirements for  various federal transit program                                                                    
     grants  for operational  support and  capital equipment                                                                    
     and facility purchases. This  grant program existed for                                                                    
     more than  a decade and  varied from half a  million to                                                                    
     $1.5  million. This  state  investment helped  leverage                                                                    
     more than three times as  much in federal funds. During                                                                    
     the  COVID  epidemic  the federal  government  provided                                                                    
     considerable  extra  funding,  much of  which  did  not                                                                    
     require a  match but  that has  changed. Now  more than                                                                    
     ever  before, the  federal  government  is making  huge                                                                    
     investments  to community  and  public transit  systems                                                                    
     nationwide and  Alaska can  access these  federal funds                                                                    
     if  they can  come up  with a  local match.  Applicants                                                                    
     must provide  matching funds in  the amount of  10, 20,                                                                    
     and sometimes  50 percent depending on  the program. To                                                                    
     ensure that our local  transit providers can access all                                                                    
     the new  federal funding for  community transportation,                                                                    
     the legislature  should provide  $1 million  to transit                                                                    
     sub-recipients to help meet local match requirements.                                                                      
                                                                                                                                
Representative  Josephson  highlighted  letters  of  support                                                                    
from   Patrick   Reinhart,   the   Governor's   Council   on                                                                    
Disabilities and Special Education,  and the Alaska Mobility                                                                    
Coalition.  He  listed  some  of  the  entities  that  would                                                                    
benefit  including  the  City   of  Bethel,  Glacier  Valley                                                                    
Transit,  City  and  Borough of  Juneau,  Ketchikan  Gateway                                                                    
Borough, Senior  Citizens of  Kodiak, Sunshine  Transit, and                                                                    
Valley  Transit.  He stated  it  seemed  like something  the                                                                    
legislature funded through the  operating budget, but it was                                                                    
a  capital  amendment. He  respected  the  agreement on  the                                                                    
capital  budget that  had been  reached between  the bodies,                                                                    
but he was  not a party to it. He  understood the Senate had                                                                    
left $113  million in  the FY 24  budget, which  would lapse                                                                    
into  the Constitutional  Budget  Reserve  (CBR). He  stated                                                                    
there  were ways  to fund  the item.  He asked  for members'                                                                    
support.                                                                                                                        
                                                                                                                                
2:36:41 PM                                                                                                                    
                                                                                                                                
Representative Stapp  opposed the  amendment. He  stated the                                                                    
amendment deleted  the general  fund match for  the previous                                                                    
amendment, which  would create hollow receipt  authority for                                                                    
the  federal  fund match  available  for  the University  of                                                                    
Alaska. He  stated that no  aspect of the  amendment created                                                                    
the fund  source to leverage  the federal  match; therefore,                                                                    
it would  jeopardize the match for  the carbon sequestration                                                                    
project.                                                                                                                        
                                                                                                                                
Co-Chair  Edgmon noted  that the  Office  of Management  and                                                                    
Budget  (OMB) director,  Legislative Finance  Division (LFD)                                                                    
staff,  and   University  staff,  were  all   available  for                                                                    
questions.                                                                                                                      
                                                                                                                                
Representative  Tomaszewski asked  if it  was the  amendment                                                                    
sponsor's intention  to have the program  for the University                                                                    
deleted.  He asked  if the  sponsor was  aiming to  kill the                                                                    
project.                                                                                                                        
                                                                                                                                
Representative  Josephson replied  that the  amendment would                                                                    
kill   less  than   half  of   the  project.   It  was   his                                                                    
understanding that the other body  was not funding the item.                                                                    
The amendment would be an adjustment to the program.                                                                            
                                                                                                                                
2:38:31 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:39:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Josephson stated that  because of the concern                                                                    
about the carbon capture and  sequestration project he asked                                                                    
that the funding be spent as  UGF as written in the original                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative Stapp MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Josephson, Ortiz, Hannan                                                                                              
OPPOSED:  Stapp,  Tomaszewski,   Cronk,  Coulombe,  Johnson,                                                                    
Foster, Edgmon                                                                                                                  
Representative Galvin was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment 2 FAILED (3/7).                                                                                   
                                                                                                                                
Representative Josephson  MOVED to  ADOPT Amendment  3 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     DEPARTMENT: University of Alaska Unassigned                                                                                
     PROGRAM: University of Alaska Fairbanks                                                                                    
     PROJECT TITLE: Alaska Railbelt Carbon Capture &                                                                            
     Sequestration Project                                                                                                      
                                                                                                                                
     DELETE:   $150,000 UGF, 1004                                                                                               
                                                                                                                                
     DEPARTMENT:    Commerce,    Community   and    Economic                                                                    
     Development                                                                                                                
    PROGRAM: Grants to Named Recipients (AS 37.05.316)                                                                          
     PROJECT TITLE: Build Alaska's Future - GIS Mapping &                                                                       
     Engagement Project                                                                                                         
                                                                                                                                
     ADD: $150,000 UGF, 1004                                                                                                    
                                                                                                                                
     EXPLANATION:   Project     funding    for     permanent                                                                    
     improvements to GIS mapping of Federal infrastructure                                                                      
     funding across Alaska.                                                                                                     
                                                                                                                                
Representative Stapp OBJECTED.                                                                                                  
                                                                                                                                
2:41:22 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:41:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Josephson  asked members  to delete  the part                                                                    
of  the  amendment  referring to  department,  program,  and                                                                    
project title. The  amendment request would use  UGF and the                                                                    
program  was  Build  Alaska's   Future  Education  Fund  GIS                                                                    
Mapping   and  Engagement   Project.  The   program  was   a                                                                    
transformative    initiative,   leveraging    cutting   edge                                                                    
geographic   information   systems   (GIS)   technology   to                                                                    
illuminate  the  scope  and  impact  of  state  and  federal                                                                    
infrastructure  funding  across   Alaska.  The  project  was                                                                    
seeking $150,000 to expand the  breadth and depth of the key                                                                    
initiatives  to  deliver  unique insights  and  educate  the                                                                    
public.  He   noted  it  was  a   CAPSIS  [Capital  Projects                                                                    
Submission  and  Information  System]  item.  He  understood                                                                    
there were many  CAPSIS items that did  not necessarily make                                                                    
it into the budget. He entered  the item as a request for an                                                                    
Alaskan  earlier  in the  year  and  he asked  for  members'                                                                    
support.                                                                                                                        
                                                                                                                                
Co-Chair  Edgmon stated  that  a good  part  of the  capital                                                                    
budget was built around  infrastructure. The budget included                                                                    
$1.25  million  for  a  navigator  program  for  the  Alaska                                                                    
Municipal League, $1.5 million  for the Alaska Federation of                                                                    
Natives,  $7  million  in  matching  funds  for  the  Denali                                                                    
Commission,  $895   million  in  federal  funding   for  the                                                                    
Statewide   Transportation    Improvement   Program   (STIP)                                                                    
program,  and  myriad projects  from  around  the state.  He                                                                    
thought the  project in the  amendment was good, but  it was                                                                    
not  possible to  include every  project in  the budget.  He                                                                    
felt  satisfied with  the amount  of infrastructure,  school                                                                    
maintenance, and energy projects  included in the budget. He                                                                    
remarked  that   the  $150,000  was  not   included  in  the                                                                    
agreement with the other body.  He stated that some projects                                                                    
would not  be included as  worthy as  they may be  and there                                                                    
was a  likelihood they  may be seen  the following  year. He                                                                    
recognized  the meritorious  content  of  the amendment  but                                                                    
could not support it.                                                                                                           
                                                                                                                                
Representative Stapp MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Ortiz, Hannan, Josephson                                                                                              
OPPOSED:   Stapp,   Representative  Coulombe,   Tomaszewski,                                                                    
Cronk, Johnson, Foster, Edgmon                                                                                                  
                                                                                                                                
Representative Galvin was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment 3 FAILED (3/7).                                                                                   
                                                                                                                                
2:45:29 PM                                                                                                                    
                                                                                                                                
Representative Josephson  MOVED to  ADOPT Amendment  4 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     DEPARTMENT: University of Alaska Unassigned                                                                                
     PROGRAM: University of Alaska Fairbanks                                                                                    
     PROJECT TITLE: Alaska Railbelt Carbon Capture &                                                                            
     Sequestration Project                                                                                                      
                                                                                                                                
     DELETE:   $160,000 UGF, 1004                                                                                               
                                                                                                                                
                                                                                                                                
     DEPARTMENT:    Commerce,    Community   and    Economic                                                                    
     Development                                                                                                                
    PROGRAM: Grants to Named Recipients (AS 37.05.316)                                                                          
     PROJECT TITLE: Build Alaska's Future - Alaska Native                                                                       
     Workforce Development Workshops (ANWDW), a Rural-Urban                                                                     
     Exchange Pilot Project                                                                                                     
                                                                                                                                
     ADD: $160,000 UGF, 1004                                                                                                    
                                                                                                                                
     EXPLANATION: Pilot program to address workforce needs                                                                      
     in rural areas and Alaska Native communities.                                                                              
                                                                                                                                
Representative Stapp OBJECTED.                                                                                                  
                                                                                                                                
Representative Josephson  explained the amendment.  He noted                                                                    
that the  project title would  not relate to  carbon capture                                                                    
and sequestration.  The amendment  would provide  funding to                                                                    
the  Alaska  Native   Workforce  Development  Workshops.  He                                                                    
detailed  that  the  pilot  project   aimed  to  bridge  the                                                                    
rural/urban  gap   by  convening  stakeholders   to  address                                                                    
pressing training and  workforce needs specifically focusing                                                                    
on rural  and Alaska Native communities.  The workshops were                                                                    
a necessary  step towards bridging  the divide  in workforce                                                                    
development  opportunities  for  rural Alaska.  The  program                                                                    
comprised a  statewide virtual workshop and  three in person                                                                    
sessions  in Akiak,  Eagle, and  Klawock. The  program would                                                                    
convene   Alaska  Native   leaders,  workforce   development                                                                    
organizations, and labor and state  local officials to build                                                                    
partnerships and create  comprehensive training programs for                                                                    
rural Alaska workers. He asked for members' support.                                                                            
                                                                                                                                
Co-Chair Edgmon stated  that he was sure there was  a lot of                                                                    
value  in the  program. He  remarked that  being from  rural                                                                    
Alaska  he  was familiar  with  vocational  tech centers  in                                                                    
Kotzebue,  King Salmon,  Bethel,  and possibly  in Nome.  He                                                                    
noted  that significant  recruitment  had  taken place  with                                                                    
regional Native  corporations pertaining to  construction on                                                                    
the North Slope.  Given the budget constraints  he could not                                                                    
support the amendment.                                                                                                          
                                                                                                                                
Representative Stapp MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Josephson, Ortiz, Hannan                                                                                              
OPPOSED:  Coulombe,   Stapp,  Tomaszewski,   Cronk,  Foster,                                                                    
Johnson, Edgmon                                                                                                                 
                                                                                                                                
Representative Galvin was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment 4 FAILED (3/7).                                                                                   
                                                                                                                                
2:48:07 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  WITHDREW  Amendment  5  (copy  on                                                                    
file).                                                                                                                          
                                                                                                                                
2:48:21 PM                                                                                                                    
                                                                                                                                
Representative Josephson  MOVED to  ADOPT Amendment  6 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     DEPARTMENT: University of Alaska Unassigned                                                                                
     PROGRAM: University of Alaska Fairbanks                                                                                    
     PROJECT TITLE: Alaska Railbelt Carbon Capture &                                                                            
     Sequestration Project                                                                                                      
                                                                                                                                
     DELETE:   $90,000 UGF, 1004                                                                                                
                                                                                                                                
     DEPARTMENT:    Commerce,    Community   and    Economic                                                                    
     Development                                                                                                                
    PROGRAM: Grants to Named Recipients (AS 37.05.316)                                                                          
     PROJECT TITLE: Alaska Native Arts Foundation-Alaska                                                                        
     Native Artist Directory                                                                                                    
                                                                                                                                
     ADD: $90,000 UGF, 1004                                                                                                     
                                                                                                                                
     EXPLANATION: Creates directory to boost visibility and                                                                     
     market access of Alaska Native artists from remote                                                                         
     areas.                                                                                                                     
                                                                                                                                
Representative Stapp OBJECTED.                                                                                                  
                                                                                                                                
Representative  Josephson relayed  that  a longtime  Alaskan                                                                    
from Ketchikan  and Anchorage  had recommended  the project.                                                                    
The amendment  was not associated  with the  Alaska Railbelt                                                                    
Carbon Capture  and Sequestration Project as  a fund source.                                                                    
The  funding would  create a  directory to  boost visibility                                                                    
and  market  access of  Alaska  Native  artists from  remote                                                                    
areas.  The directory  was designed  to  give Alaska  Native                                                                    
artists   from   remote    communities   with   historically                                                                    
insufficient  online resources,  centralized  access to  art                                                                    
markets. By  the development  of a  platform collaboratively                                                                    
designed  with  artist  feedback,  indigenous  artists  from                                                                    
across  geographic  isolated  regions could  achieve  higher                                                                    
visibility and facilitate  connection between organizations,                                                                    
regions,  other  artists,  and new  patrons  throughout  the                                                                    
state, making Alaska Native  artwork more broadly available.                                                                    
He asked for members' support.                                                                                                  
                                                                                                                                
2:49:33 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:49:47 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Edgmon was  aware of  the effort  and a  number of                                                                    
regional efforts to involve the  boosting of Native artists.                                                                    
He elaborated  that much of  the arts and  crafts culminated                                                                    
at the Alaska Federation of  Natives (AFN) fair in the fall.                                                                    
He relayed that the regional  corporation in Bristol Bay had                                                                    
an  online marketing  effort that  did something  similar to                                                                    
what the  amendment proposed. He believed  there were others                                                                    
around  the state  as well.  Due to  budget constraints,  he                                                                    
would oppose the amendment.                                                                                                     
                                                                                                                                
Representative Cronk agreed with  the statements made by Co-                                                                    
Chair Edgmon.  He remarked that Native  artists increasingly                                                                    
had their own  websites. He did not think  the amendment was                                                                    
needed.  He believed  that with  the boost  of broadband  in                                                                    
rural Alaska in the coming years  it would be a great avenue                                                                    
for artists to sell their work.                                                                                                 
                                                                                                                                
Representative Stapp MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Josephson, Ortiz, Hannan, Foster                                                                                      
OPPOSED:  Stapp,  Tomaszewski,   Cronk,  Coulombe,  Johnson,                                                                    
Edgmon                                                                                                                          
                                                                                                                                
Representative Galvin was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment 6 FAILED (4/6).                                                                                   
                                                                                                                                
2:51:33 PM                                                                                                                    
                                                                                                                                
Representative Josephson  MOVED to  ADOPT Amendment  7 (copy                                                                    
on file):                                                                                                                       
     DEPARTMENT:    Commerce,    Community   and    Economic                                                                    
     Development                                                                                                                
     PROGRAM: Unassigned                                                                                                        
     PROJECT TITLE: Alaska Energy Authority - Round 16                                                                          
     Renewable Energy Project Grants (AS 42.45.045)                                                                             
                                                                                                                                
     ADD: $5,000,000 UGF, 1004                                                                                                  
                                                                                                                                
     EXPLANATION: This would add additional funding for                                                                         
     this program.                                                                                                              
                                                                                                                                
Representative Stapp OBJECTED.                                                                                                  
                                                                                                                                
Representative  Josephson relayed  that for  several members                                                                    
of his  caucus and broadly  speaking, there was  interest in                                                                    
increasing the  Renewable Energy  Fund (REF).  He recognized                                                                    
that Co-Chair Edgmon  and his caucus found  generous ways to                                                                    
fund  the  REF  beyond  the  administration's  request.  The                                                                    
amendment would  add another $5  million UGF.  He understood                                                                    
that   the  other   body  reduced   the  waterfall   because                                                                    
circumstances  changed  (there  were fiscal  notes  and  new                                                                    
contracts) and  the amount intended  to send to the  CBR one                                                                    
year back  had shrunk  by about $30  million. He  noted that                                                                    
during  conference  committee [to  be  held  at the  end  of                                                                    
session] the argument  could presumably be made  that all of                                                                    
that  $113 million  did  not  need to  go  to  the CBR.  The                                                                    
amendment would  expand the Renewable Energy  Fund portfolio                                                                    
to  include Goat  Lake Hydro  in Skagway,  Nuvista Kwethluk,                                                                    
Quinhagak  Battery  Energy   Storage,  Nenana  biomass  heat                                                                    
system, Kongiganak  100 kilowatt  solar energy  project, and                                                                    
the  Railbelt wind  diversification  project.  He asked  for                                                                    
members' support.                                                                                                               
                                                                                                                                
Co-Chair   Edgmon  appreciated   acknowledgement  that   the                                                                    
current budget proposal increased  the REF funding by almost                                                                    
$11  million   and  provided  for  the   addition  of  eight                                                                    
projects. In  a perfect world,  he would like to  fund every                                                                    
project on  the list, which  would increase the  amount from                                                                    
$14 million  to $32 million. He  stated that, unfortunately,                                                                    
the  opportunity  was not  available.  He  relayed that  the                                                                    
previous  year the  legislature had  funded $15  million and                                                                    
made the  REF program  permanent with  legislation supported                                                                    
by  the entire  committee.  He had  spoken  with the  Alaska                                                                    
Energy Authority  (AEA) director Curtis Thayer  several days                                                                    
back and  Mr. Thayer had  talked about the inception  of the                                                                    
program  in  2008.  Over  $300 million  had  gone  into  the                                                                    
program over time  and it was more than just  seed money for                                                                    
a bunch of projects that  never reach fruition. There were a                                                                    
number of  major renewable energy projects  around the state                                                                    
that started out by being  included on the REF project list.                                                                    
Unfortunately,  there   were  budget  limitations   and  the                                                                    
current  budget included  almost $15  million, which  was on                                                                    
par with  the previous year.  Due to budget  constraints, he                                                                    
would have to oppose the amendment.                                                                                             
                                                                                                                                
Representative   Hannan   stated   that   the   actions   of                                                                    
Representative  Josephson  were   supported  by  the  entire                                                                    
minority caucus. She remarked there  had been reference to a                                                                    
deal  that had  been cut  between the  majority caucuses  in                                                                    
both  bodies; however,  no  one in  the  House minority  was                                                                    
allowed to have district projects  and they had not received                                                                    
any say on the included  projects. She highlighted that none                                                                    
of the  projects on the  list in the amendment  were located                                                                    
in her district; however, it  was something as a caucus they                                                                    
could support.  She stated that investing  more in renewable                                                                    
energy   was  something   the   minority  caucus   supported                                                                    
universally as being good for Alaska.                                                                                           
                                                                                                                                
2:56:44 PM                                                                                                                    
                                                                                                                                
Co-Chair Edgmon  politely rebutted  the comments  by stating                                                                    
that the capital  budget did get a number  of House district                                                                    
priorities  funded while  it was  in the  other body.  There                                                                    
were some  Juneau projects in  the budget including  one for                                                                    
the University.  He agreed that individual  projects for the                                                                    
minority and the majority did  not get funded in the budget.                                                                    
He relayed that  they did best they  could. He characterized                                                                    
it as imperfectly perfect or perfectly imperfect.                                                                               
                                                                                                                                
Representative  Stapp supported  the work  done by  Co-Chair                                                                    
Edgmon on  the capital  budget. He addressed  the discussion                                                                    
on  people's  individual  projects not  being  included.  He                                                                    
assured the committee that the  Senate majority took care of                                                                    
the House minority  very well. He remarked  that his senator                                                                    
was  in the  Senate majority  and every  one of  the capital                                                                    
projects  included were  not in  his own  district but  were                                                                    
located in the downtown [Fairbanks] district.                                                                                   
                                                                                                                                
2:58:24 PM                                                                                                                    
                                                                                                                                
Co-Chair  Johnson  appreciated  the work  done  by  Co-Chair                                                                    
Edgmon  and the  work  done  to make  sure  everyone was  as                                                                    
fairly treated as possible.                                                                                                     
                                                                                                                                
Representative Stapp MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Ortiz, Hannan, Josephson                                                                                              
OPPOSED: Stapp, Tomaszewski, Cronk, Coulombe, Johnson,                                                                          
Foster, Edgmon                                                                                                                  
                                                                                                                                
Representative Galvin was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to Adopt Amendment 7 FAILED (3/7).                                                                                   
                                                                                                                                
2:59:43 PM                                                                                                                    
                                                                                                                                
Representative Josephson WITHDREW Amendment 8 (copy on                                                                          
file).                                                                                                                          
                                                                                                                                
3:00:01 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:00:27 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Josephson WITHDREW Amendments 9 and 10 (copy                                                                     
on file).                                                                                                                       
                                                                                                                                
Representative Josephson MOVED to ADOPT Amendment 11 (copy                                                                      
on file):                                                                                                                       
                                                                                                                                
     DEPARTMENT: Revenue                                                                                                        
     PROGRAM: Unassigned                                                                                                        
     PROJECT TITLE: Dividend Application Information System                                                                     
     Replacement Phase I                                                                                                        
                                                                                                                                
     DELETE: $3,500,000 UGF, 1004                                                                                               
                                                                                                                                
     DEPARTMENT:    Commerce,    Community   and    Economic                                                                    
     Development                                                                                                                
     PROGRAM: Grants to Municipalities (AS 37.05.315)                                                                           
     PROJECT   TITLE:   Anchorage-   Tanaina   Hills   Water                                                                    
     Distribution Installation                                                                                                  
                                                                                                                                
     ADD: $3,500,000 UGF, 1004                                                                                                  
                                                                                                                                
     EXPLANATION:                                                                                                               
     North Link Aviation plans to create a parking and fuel                                                                     
     depot for jumbo jets south of the Ted Stevens                                                                              
     International Airport.  Many residents living  near the                                                                    
     potential South  Airpark Cargo Improvement  project use                                                                    
     well  water. Residents  are  already experiencing  PFAS                                                                    
     contamination.   They   worry    of   additional   PFAS                                                                    
     contamination from  the project,  and request  that the                                                                    
     city water service be extended to the area.                                                                                
                                                                                                                                
Representative  Josephson explained  that  he  had lived  in                                                                    
many communities in Alaska and  twice in rural Alaska and he                                                                    
had  an Alaska-wide  spectrum. He  considered himself  to be                                                                    
another rural  Alaska vote if  asked. He explained  that the                                                                    
amendment  pertained  to  a  project that  was  not  in  his                                                                    
district; it was  located close to the  airport in Anchorage                                                                    
and  just south  of Raspberry  Road. He  explained that  the                                                                    
Tanaina Hills  subdivision included  about 24 homes,  all on                                                                    
well water.  The homeowners had protested  adamantly with no                                                                    
success  over  the  creation  of  the  south  airpark  cargo                                                                    
improvement  project  located  on  the  south  part  of  the                                                                    
airport campus.  The homeowners were opposed  to the project                                                                    
because  it   would  create  air  issues   and  because  the                                                                    
subdivision already suffered from  PFAS inundated well water                                                                    
related to  fire suppression work.  He believed  the project                                                                    
was  located  in  Representative Tom  McKay's  district  and                                                                    
Senator  Matt Claman's  district.  He requested  to ask  LFD                                                                    
about   the   Dividend    Application   Information   System                                                                    
Replacement fund source in the amendment.                                                                                       
                                                                                                                                
MICHAEL  PARTLOW,  ANALYST,  LEGISLATIVE  FINANCE  DIVISION,                                                                    
introduced himself.                                                                                                             
                                                                                                                                
Representative  Josephson asked  Mr.  Partlow  what he  knew                                                                    
about   the   Dividend    Application   Information   System                                                                    
Replacement and  whether it needed  the $7.5 million  in the                                                                    
budget.                                                                                                                         
                                                                                                                                
Co-Chair Edgmon  remarked that  the specific  budget request                                                                    
addressed by Amendment  11 had come to the  House very late;                                                                    
he believed it had come  to the Senate Finance Committee co-                                                                    
chairs  right  as they  were  sending  the budget  over.  He                                                                    
stated  that  the  Dividend Application  Information  System                                                                    
Replacement  totaled about  $7.5 million  and the  House and                                                                    
Senate agreed that each would  put in $3.75 million for each                                                                    
component.  He thought  perhaps  the OMB  director would  be                                                                    
appropriate to answer the question.                                                                                             
                                                                                                                                
Mr. Partlow  answered that the budget  included $7.5 million                                                                    
for the  project and Amendment  11 would reduce  the funding                                                                    
by $3.5  million. He deferred  to the OMB director  for more                                                                    
details on the project.                                                                                                         
                                                                                                                                
LACEY SANDERS,  DIRECTOR, OFFICE  OF MANAGEMENT  AND BUDGET,                                                                    
OFFICE   OF  THE   GOVERNOR,  relayed   that  the   Dividend                                                                    
Application  Information   System  Replacement  was   a  new                                                                    
project  for the  Department of  Revenue (DOR).  The funding                                                                    
was  for the  first of  what the  administration was  hoping                                                                    
would be two phases of  requests to come to the legislature.                                                                    
She explained that DOR was  working on issuing a request for                                                                    
proposal  (RFP) for  a contract  to  start the  work on  the                                                                    
development  of the  new system.  There were  concerns about                                                                    
automation and security with the  current system and the new                                                                    
system would replace  it. The $7.5 million  would enable DOR                                                                    
to start on the design and issue a contract for the work.                                                                       
                                                                                                                                
Representative Josephson  asked if the project  had received                                                                    
an appropriation before.                                                                                                        
                                                                                                                                
Ms. Sanders replied in the  negative. She clarified that the                                                                    
system would be brand new.                                                                                                      
                                                                                                                                
Representative  Josephson  asked  about the  minimum  amount                                                                    
needed in the coming fiscal year for the project.                                                                               
                                                                                                                                
Ms. Sanders  replied that  OMB believed  it would  cost $7.5                                                                    
million to  get started  on design  work with  a contractor.                                                                    
The  total  project  cost  would  not  be  known  until  the                                                                    
contract was issued.  She estimated it could  be $15 million                                                                    
to $20 million total.                                                                                                           
                                                                                                                                
Representative   Josephson   asked   about  the   level   of                                                                    
confidence the  funds would be  needed in the  coming fiscal                                                                    
year.                                                                                                                           
                                                                                                                                
Ms.  Sanders  responded  that she  was  very  confident  DOR                                                                    
needed  the  funding  to  be  able to  get  started  with  a                                                                    
contractor.                                                                                                                     
                                                                                                                                
Representative  Josephson asked  if it  was appropriate  for                                                                    
LFD to offer an opinion.                                                                                                        
                                                                                                                                
Co-Chair  Edgmon  noted  there  were  questions  from  other                                                                    
committee members.                                                                                                              
                                                                                                                                
Representative Cronk  stated the committee  could "literally                                                                    
do  this to  every single  item in  the budget."  He thought                                                                    
asking whether  budget items were  needed was opening  a can                                                                    
of worms. He  stated the committee could  spend weeks asking                                                                    
for opinions. He did not believe it was appropriate.                                                                            
                                                                                                                                
Co-Chair Edgmon agreed. He stated  that the program was new,                                                                    
and  his office  did its  own due  diligence on  whether the                                                                    
project was worthy. He believed  the initial number had been                                                                    
much higher and his office had  pared it down. He added that                                                                    
the other body agreed with the budget item.                                                                                     
                                                                                                                                
3:09:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Johnson relayed that  she had questioned the budget                                                                    
item when  it had  initially come forward.  She had  spent a                                                                    
lot  of  time  analyzing  the request  and  amount  and  had                                                                    
determined it was needed.                                                                                                       
                                                                                                                                
Co-Chair  Edgmon  commended   Representative  Josephson  for                                                                    
bringing  the amendment  forward  and  highlighting the  new                                                                    
expansive project near the  [Anchorage] airport. He referred                                                                    
to  existing  indications of  PFAS  before  the project  had                                                                    
started.                                                                                                                        
                                                                                                                                
Representative  Coulombe  thanked Representative  Josephson.                                                                    
She shared  that it was a  very sad story in  Anchorage. She                                                                    
speculated  that if  committee members  had houses  in their                                                                    
community  that were  contaminated  and  needed city  water,                                                                    
they would likely  feel just as passionate  about the issue.                                                                    
She  asked  if the  municipality  was  able to  address  the                                                                    
issue.  Alternatively,  she  wondered if  the  contamination                                                                    
from the airport meant it had to come from the state.                                                                           
                                                                                                                                
Representative Josephson  answered it was very  expensive at                                                                    
$3.5 million  for 24 families.  He did not know  whether the                                                                    
families   were   using   potable  water.   He   appreciated                                                                    
Representative Coulombe's comments.                                                                                             
                                                                                                                                
Representative   Stapp   appreciated   the  maker   of   the                                                                    
amendment.  He shared  that Fairbanks  knew  all about  PFAS                                                                    
contamination in  wells. He  estimated that  about one-third                                                                    
of the town  was contaminated by PFAS, which was  why he had                                                                    
sponsored a  bill to start  the process on  PFAS mitigation.                                                                    
He would not be supporting the amendment.                                                                                       
                                                                                                                                
Co-Chair Edgmon noted that the  committee had reported out a                                                                    
PFAS bill   SB 167    several days back (the House companion                                                                    
version  had been  introduced by  Representative Stapp).  He                                                                    
highlighted that his hometown of  Dillingham also had a PFAS                                                                    
problem.                                                                                                                        
                                                                                                                                
3:12:49 PM                                                                                                                    
                                                                                                                                
Representative Hannan  reminded the committee that  the PFAS                                                                    
bill did not  clean up contaminated wells.  The bill allowed                                                                    
the  collection of  PFAS  material  from small  communities.                                                                    
There had  been several PFAS  bills that went  much further,                                                                    
one  that was  vetoed the  previous year.  Across the  state                                                                    
there  were  Code  Red canisters  waiting  to  be  collected                                                                    
instead  of being  dispersed  in communities.  Additionally,                                                                    
there were communities with contaminated  wells. Some of the                                                                    
cleanup  was   federal  obligation  and  some   may  involve                                                                    
litigated  money to  clean up.  Meanwhile, people  still had                                                                    
contaminated  water  in  their  wells  and  the  legislature                                                                    
needed  to   start  getting  money  to   people's  wells  or                                                                    
connecting them  to safe drinking water  systems. She stated                                                                    
it would not  come fast enough and there would  be some real                                                                    
health  impacts.  She  highlighted the  impact  on  drinking                                                                    
water in Dillingham, Tok, and  other locations. She believed                                                                    
the state needed to start  dealing with the projects and not                                                                    
wait  for the  federal government.  She noted  that drinking                                                                    
water  was already  a critical  issue in  rural Alaska.  She                                                                    
wished the committee could support the amendment.                                                                               
                                                                                                                                
Representative  Josephson  respected Representative  Cronk's                                                                    
point;  however, he  guessed  that the  item  [for DOR]  had                                                                    
likely been  identified as something that  was not necessary                                                                    
in its entirety for the coming year.                                                                                            
                                                                                                                                
Representative Stapp MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Ortiz, Josephson, Hannan                                                                                              
OPPOSED:  Coulombe,  Stapp,   Tomaszewski,  Cronk,  Johnson,                                                                    
Foster, Edgmon                                                                                                                  
                                                                                                                                
Representative Galvin was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment 11 FAILED (3/7).                                                                                  
                                                                                                                                
3:15:49 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  WITHDREW  Amendments  12  and  13                                                                    
(copy on file).                                                                                                                 
                                                                                                                                
3:16:08 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:17:09 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Ortiz  MOVED to  ADOPT Amendment 14  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     DEPARTMENT:    Commerce,    Community   and    Economic                                                                    
     Development                                                                                                                
     PROGRAM: Grants to Unincorporated Communities (AS                                                                          
     37.05.317)                                                                                                                 
     PROJECT TITLE: Metlakatla - Emergency Repair for Frank                                                                     
     Hayward Memorial Breakwater                                                                                                
                                                                                                                                
     ADD: $695,000, Unrestricted General Funds, (1004)                                                                          
                                                                                                                                
     EXPLANATION:   Critical repairs are needed for the                                                                         
     Frank Hayward Memorial Breakwater where the emergency                                                                      
     medevac vessel, Triton, is moored.                                                                                         
                                                                                                                                
Representative Stapp OBJECTED.                                                                                                  
                                                                                                                                
Representative  Ortiz explained  the  amendment. He  thanked                                                                    
Co-Chair  Edgmon for  his  work on  the  capital budget  and                                                                    
believed  he  had  done  an   exceptional  job.  He  had  no                                                                    
complaints  and understood  the situation.  He was  offering                                                                    
the amendment  in the name  of public health and  safety. He                                                                    
understood  it was  one of  the major  goals put  forward by                                                                    
both  capital budget  chairs.  The  amendment would  provide                                                                    
$695,000  for Metlakatla  to address  a pressing  health and                                                                    
safety  need.  He relayed  that  Metlakatla  was located  on                                                                    
Annette Island, 20  miles south of Ketchikan  and could only                                                                    
be reached by  seaplane or boat. The  Frank Hayward Memorial                                                                    
Breakwater  was  constructed  in 1986  and  increased  storm                                                                    
intensity  and  high tides  had  increased  pressure on  the                                                                    
aging   infrastructure,  resulting   in  significant   storm                                                                    
damage. He stressed  that the damage needed  to be addressed                                                                    
to  protect  the health  and  safety  of the  community.  He                                                                    
explained that  three floats  and six  pilings needed  to be                                                                    
replaced. The Medivac vessel, Triton  was moored in the area                                                                    
and emergency  medical patients  were transported  from that                                                                    
location. He relayed that the  community was looking to do a                                                                    
larger overhaul of the breakwater  in the future, but in the                                                                    
meantime,  repairs  were  needed  to  make  it  usable.  The                                                                    
amendment addressed  the health and safety  of the Tsimshian                                                                    
people of Metlakatla.                                                                                                           
                                                                                                                                
3:20:53 PM                                                                                                                    
                                                                                                                                
Co-Chair Edgmon  appreciated the  amendment. He asked  if it                                                                    
was a project that would  endeavor to seek federal funds for                                                                    
overall completion.  He had a number  of fishing communities                                                                    
in  his  district   such  as  St.  Paul   Island  and  other                                                                    
communities  with breakwaters  that had  ultimately involved                                                                    
millions in  federal funds.  He did  not see  matching funds                                                                    
attached to  the amendment. He  asked if the  overall amount                                                                    
being sought was the overall amount needed.                                                                                     
                                                                                                                                
Representative  Ortiz replied  that  the amendment  included                                                                    
the  total amount  for the  repairs to  make it  useable for                                                                    
emergency  evacuation purposes.  The  community had  further                                                                    
plans in the future to  make the repair more sustainable for                                                                    
long-term usage.                                                                                                                
                                                                                                                                
Co-Chair Edgmon stated that given  the similarities in their                                                                    
coastal  districts he  could  empathize  and understand  the                                                                    
need for the project. He  noted that unfortunately it butted                                                                    
up against the fiscal realities facing the committee.                                                                           
                                                                                                                                
3:22:42 PM                                                                                                                    
                                                                                                                                
Representative Ortiz  provided wrap  up on Amendment  14. He                                                                    
thanked the  committee for its serious  consideration of the                                                                    
request.  He believed  there would  be little  pushback from                                                                    
the other  body during conference committee.  He remarked on                                                                    
the  potential for  $113 million  to be  set aside  for some                                                                    
particular  purposes. He  did not  believe the  ask was  too                                                                    
large to see the project move  forward in the name of public                                                                    
safety for the people on Annette Island.                                                                                        
                                                                                                                                
Representative Stapp MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Ortiz, Josephson, Hannan, Edgmon                                                                                      
OPPOSED:  Stapp,   Coulombe,  Cronk,   Tomaszewski,  Foster,                                                                    
Johnson                                                                                                                         
                                                                                                                                
Representative Galvin was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt amendment 14 FAILED (4/6).                                                                                  
Representative  Cronk  introduced   family  members  in  the                                                                    
audience.                                                                                                                       
                                                                                                                                
Representative  Hannan   requested  a  brief  at   ease  for                                                                    
Representative Cronk to see his family.                                                                                         
                                                                                                                                
Co-Chair  Edgmon thanked  the committee  for its  input into                                                                    
the  budget  process.  He  asked  if  there  were  committee                                                                    
comments.                                                                                                                       
                                                                                                                                
Representative  Coulombe  thanked  Co-Chair Edgmon  for  the                                                                    
process. She  noted that  noted that her  first year  in the                                                                    
legislature [2023] there had not  been a good capital budget                                                                    
process. She acknowledged the work  and appreciated that the                                                                    
process was different than the prior year.                                                                                      
                                                                                                                                
3:26:07 PM                                                                                                                    
                                                                                                                                
Representative Cronk did not believe  the House had done the                                                                    
capital budget for his first  several of years in office. He                                                                    
remarked that it was not  possible to fund everything and he                                                                    
believed the  process and effort  had been fair.  He thanked                                                                    
Co-Chair Edgmon for his work.                                                                                                   
                                                                                                                                
Co-Chair  Johnson  thanked  staff and  Co-Chair  Edgmon  for                                                                    
their work.                                                                                                                     
                                                                                                                                
Co-Chair Edgmon  thanked his staff,  LFD, OMB,  and Co-Chair                                                                    
Foster's staff Brodie Anderson.                                                                                                 
                                                                                                                                
Co-Chair Johnson  MOVED to REPORT  HCS CSSB 187(FIN)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying  fiscal  notes  with   permission  to  LFD  and                                                                    
Legislative Legal Services to  make technical and conforming                                                                    
changes.                                                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HCS CSSB 187(FIN)  was REPORTED out of  committee with seven                                                                    
"do    pass"     recommendations    and     three    "amend"                                                                    
recommendations.                                                                                                                
                                                                                                                                
Co-Chair Foster noted there would be a 10 minute break.                                                                         
                                                                                                                                
3:29:12 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:54:23 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 307 Amendments 1 - 8 050324 (2).pdf HFIN 5/3/2024 1:30:00 PM
HB 307
SB 118 Sponsor Statement.pdf HFIN 5/3/2024 1:30:00 PM
SB 118
SB 118 cs Summary of Changes.pdf HFIN 5/3/2024 1:30:00 PM
SB 118
SB118 Sectional.pdf HFIN 5/3/2024 1:30:00 PM
SB 118
SB 187 HCS FIN Amendment Pkt 1-14 050324.pdf HFIN 5/3/2024 1:30:00 PM
SB 187
HB307 Amendment 3 Backup 050324.pdf HFIN 5/3/2024 1:30:00 PM
HB 307
HB 232 Public Testimony Rec'd by 050324.pdf HFIN 5/3/2024 1:30:00 PM
HB 232