Legislature(2005 - 2006)HOUSE FINANCE 519
05/05/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB110 | |
| HCR12 | |
| SB110 | |
| HB106 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 291 | TELECONFERENCED | |
| + | HB 297 | TELECONFERENCED | |
| + | HCR 12 | TELECONFERENCED | |
| + | SB 142 | TELECONFERENCED | |
| + | SB 144 | TELECONFERENCED | |
| + | SB 150 | TELECONFERENCED | |
| + | SB 130 | TELECONFERENCED | |
| += | HB 106 | TELECONFERENCED | |
| = | SB 110 | ||
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
May 5, 2005
1:39 P.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:39:03 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Eric Croft
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Bruce Weyhrauch
MEMBERS ABSENT
Representative Carl Moses
ALSO PRESENT
Representative Paul Seaton; Representative Bill Thomas; Kurt
Fredriksson, Commissioner, Department of Environmental
Conservation; Marie Darlin, Alaska Association of Retired
Persons (AARP), Juneau; Jon Sherwood, Department of Health &
Social Services; Joel Gilbertson, Commissioner, Department
of Health & Social Services; Janet Clarke, Assistant
Commissioner, Division of Finance and Management Services,
Department of Health and Social Services; Linda Gohl,
Director, Alaska Commission on Aging, Department of Health
and Social Services
PRESENT VIA TELECONFERENCE
Cameron Leonard, Assistant Attorney General, Department of
Law, Anchorage
SUMMARY
HB 106 An Act establishing the senior care program and
relating to that program; creating a fund for the
provision of the senior care program; repealing
ch. 3, SLA 2004; and providing for an effective
date.
CS HB 106 (FIN) was reported out of Committee with
a "no" recommendation and with four new zero
fiscal notes by the Department of Health & Social
Services.
HB 291 An Act relating to release of information in
individual workers' compensation records for
commercial purposes; and providing for an
effective date.
HB 291 was SCHEDULED but not HEARD.
HB 297 An Act extending and amending the requirements
applicable to the credit that may be claimed for
certain oil and gas exploration expenses incurred
in Cook Inlet against oil and gas properties
production (severance) taxes, and amending the
credit against those taxes for certain exploration
expenditures from other leases or properties in
the state and, conditionally, for exploration
expenditures made in the Alaska Peninsula
competitive oil and gas area wide lease sale area;
and providing for an effective date.
HB 297 was SCHEDULED but not HEARD.
HCR 12 Relating to the Joint Rural Assessment Task Force.
CS HCR 12 (FIN) was reported out of Committee with
a "do pass" recommendation and with a new zero
note by the Legislative Affairs Agency.
CS SB 110(FIN)(efd fld)
An Act relating to regulation of the discharge of
pollutants under the National Pollutant Discharge
Elimination System.
HCS CS SB 110 (FIN) was reported out of Committee
with a "no" recommendation and with zero note #1
by the Department of Fish & Game, zero note #2 by
the Department of Natural Resources, zero note #4
by the Department of Transportation & Public
Facilities and fiscal note #5 by the Department of
Environmental Conservation.
CS SB 130(FIN) am
An Act relating to a special deposit for workers'
compensation and employers' liability insurers;
relating to assigned risk pools; relating to
workers' compensation insurers; stating the intent
of the legislature, and setting out limitations,
concerning the interpretation, construction, and
implementation of workers' compensation laws;
relating to the Alaska Workers' Compensation
Board; assigning certain Alaska Workers'
Compensation Board functions to the division of
workers' compensation in the Department of Labor
and Workforce Development and to that department,
and authorizing the board to delegate
administrative and enforcement duties to the
division; providing for workers' compensation
hearing officers in workers' compensation
proceedings; establishing a Workers' Compensation
Appeals Commission; relating to workers'
compensation medical benefits and to charges for
and payment of fees for the medical benefits;
relating to agreements that discharge workers'
compensation liability; relating to workers'
compensation awards; relating to reemployment
benefits and job dislocation benefits; relating to
coordination of workers' compensation and certain
disability benefits; relating to division of
workers' compensation records; relating to release
of treatment records; relating to an employer's
failure to insure and keep insured or provide
security; providing for appeals from compensation
orders; relating to workers' compensation
proceedings; providing for supreme court
jurisdiction of appeals from the Workers'
Compensation Appeals Commission; providing for a
maximum amount for the cost-of-living adjustment
for workers' compensation benefits; relating to
attorney fees with respect to workers'
compensation; providing for the department to
enter into contracts with nonprofit organizations
to provide information services and legal
representation to injured employees; providing for
administrative penalties for employers uninsured
or without adequate security for workers'
compensation; relating to fraudulent acts or false
or misleading statements in workers' compensation
and penalties for the acts or statements;
providing for members of a limited liability
company to be included as an employee for purposes
of workers' compensation; establishing a workers'
compensation benefits guaranty fund; making
conforming amendments; providing for a study and
report by the medical services review committee;
establishing the Task Force on Workers'
Compensation; and providing for an effective date.
CS SB 130(FIN) am was SCHEDULED but not HEARD.
CS SB 142(L&C)
An Act relating to ownership of land by regional
school boards; and providing for an effective
date.
CS SB 142(L&C) was SCHEDULED but not HEARD.
CS SB 144(RES)
An Act relating to regulations, definitions, and
permits under the emission control permit program;
and providing for an effective date.
CS SB 144(RES) was SCHEDULED but not HEARD.
CS SB 150(HES)
An Act relating to the Alaska children's trust
grant awards.
CS SB 150(HES) was SCHEDULED but not HEARD.
CS FOR SENATE BILL NO. 110(FIN)(efd fld)
An Act relating to regulation of the discharge of
pollutants under the National Pollutant Discharge
Elimination System.
1:40:43 PM
Vice-Chair Stoltze MOVED to ADOPT Amendment #4 for
Representative Seaton. Vice-Chair Stoltze OBJECTED.
KURT FREDRIKSSON, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, explained that the Department intends to
continue the work group to help develop the bill proposal.
The original intent of the work group was to help those most
affected in their attempt to get approval from the
Environmental Protection Agency (EPA). All work group
activities are public noticed for comment. He thought that
Amendment #4 would create a more formal process. He stated
it was unnecessary because the Administrative Procedure Act
already clearly addresses that.
Vice-Chair Stoltze WITHDREW his OBJECTION.
Co-Chair Meyer OBJECTED.
A roll call vote was taken on the motion to adopt Amendment
#4.
IN FAVOR: Stoltze, Croft, Joule, Kelly
OPPOSED: Foster, Hawker, Holm, Meyer, Chenault
Representative Moses and Representative Weyhrauch were not
present for the vote.
The MOTION FAILED (4-5).
Vice-Chair Stoltze MOVED to ADOPT Amendment #5 for
Representative Seaton. Vice-Chair Stoltze OBJECTED.
Commissioner Fredriksson explained that the amendment would
insert language on Page 5, Line 13, after "program" adding
"or comments on a draft permit". The work group has
attempted to draw up the appropriate language. There are
laws requiring a review if substantive changes are made. He
thought it would place an obligation on the Department to
discuss changes with all parties and urged that the
amendment not move forward. He guaranteed that if there
were significant changes made, the Department is already
required to offer a significant review.
Vice-Chair Stoltze WITHDREW his OBJECTION. Representative
Kelly OBJECTED.
1:47:09 PM
Representative Joule asked who defines "significant
changes". Commissioner Fredriksson replied it would be the
Department with respect to rule making and permitting.
Co-Chair Chenault inquired if the Department would be
required to discuss all comments regarding that process.
Commissioner Fredriksson said they would.
1:48:22 PM
Vice-Chair Stoltze WITHDREW Amendment #5. There being NO
OBJECTION, it was withdrawn.
Vice-Chair Stoltze recommended that the bill be held in
Committee so that Representative Weyhrauch could be present
to add his comments. Co-Chair Meyer agreed but noted that
it was his intent to move the bill from Committee at the
morning meeting.
SB 110 was HELD for further consideration.
HOUSE CONCURRENT RESOLUTION NO. 12
Relating to the Joint Rural Assessment Task Force.
Co-Chair Chenault MOVED to ADOPT work draft #24-LS0964\I,
Cook, 5/3/05, as the version of the bill before the
Committee. Representative Croft OBJECTED to hear the
changes.
1:50:52 PM
REPRESENTATIVE BILL THOMAS, SPONSOR, explained that many
communities in Alaska are going into debt and/or terminating
local services because of inadequate State and federal
funding. With lack of a sustainable economy that generates
revenue necessary to fund local services, those communities
are hurting.
Representative Thomas believed the Legislature would benefit
from a clear picture regarding the current state of these
rural communities. The proposed resolution calls on the
Legislature to establish a Joint Rural Assessment Task
Force. The Task Force would be charged with assessing needs
of rural communities and reporting those findings to the
Legislature by January 15, 2006. Membership would include:
* Six legislators
* One designee of the Alaskan Municipal League
* One designee of the First Alaskans Institute
* One public member
Representative Thomas anticipated that the Task Force would
draw on the work of several organizations to conduct
assessments and develop findings, including recommendations
made by Governor Murkowski's Rural Energy Action Council,
the Denali Commission's five-Year strategic plan and a
community needs assessment report completed by the Alaska
Municipal League. The Task Force would conduct hearings in
three to five communities across Alaska.
1:54:21 PM
Vice-Chair Stoltze supported the idea and asked who the
"public members" would be. Representative Thomas replied
non-legislative members as chosen by the President of the
Senate or the Speaker of the House.
1:54:58 PM
Vice-Chair Stoltze inquired if Representative Thomas
expected to have a role in the process. Representative
Thomas replied that he would help move it and that he had
been invited to three of the communities already to meet
with those residents.
1:55:39 PM
Representative Thomas pointed out that one meeting was
planned for the Alaska Federation of Natives (AFN)
Conference scheduled in Fairbanks.
Representative Joule inquired about Legislative involvement.
Representative Thomas mentioned rather than attaching a
fiscal note, there would be private donations coming in to
reduce costs. He added that leadership on both sides are
participating.
1:57:15 PM
Representative Hawker commented on the idea of no fiscal
note. Representative Thomas explained that the bill
originally had a note; the intent is to zero it out.
Representative Croft WITHDREW his OBJECTION. There being NO
further OBJECTION, the work draft was adopted.
1:58:29 PM
Representative Hawker MOVED to replace fiscal note #1 with a
new zero note. There being NO OBJECTION, the note was
zeroed and would be accommodated from the existing
legislative budget.
1:58:57 PM
Representative Kelly encouraged the Task Force look at the
issues for decreasing federal funds, unemployment and the
sustainability of those communities. Representative Thomas
said that was the intent.
2:00:44 PM
Representative Hawker MOVED to REPORT CS HCR 12 (CRA) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HCR 12 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new zero note by the
Legislative Affairs Agency.
2:02:00 PM
CS FOR SENATE BILL NO. 110(FIN)(efd fld)
An Act relating to regulation of the discharge of
pollutants under the National Pollutant Discharge
Elimination System.
Representative Weyhrauch MOVED to ADOPT Amendment #1, #24-
GS1009\GA.2, Bullock, 5/4/05. Vice-Chair Stoltze OBJECTED.
Representative Weyhrauch noted that he would like to amend
Amendment #1, by deleting Lines 1-9. The language of the
amendment would insert a new bill section, Page 6, following
Line 1, which would clarify the duties of the Department of
Environmental Conservation.
Representative Hawker OBJECTED to the deletion of that
language. Representative Weyhrauch advised that the intent
was only to replace that section and then create a new
Section 6.
2:04:01 PM
Representative Weyhrauch reiterated his intent to delete
Lines 1-9 and replace with deleted Section 1.
Representative Hawker WITHDREW his OBJECTION. Commissioner
Fredriksson interjected that the Department had no objection
to the change.
2:05:40 PM
Representative Kelly referenced Line 16 (B) regarding
establishing the work group, and asked why EPA had not been
included. Representative Weyhrauch explained that the "work
group" language had originated in the Governor's bill.
Commissioner Fredriksson added, the intent was to establish
a working group regulated by the program and involving EPA
only to the extent that the application passes their
approval.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment #1 was adopted.
2:07:35 PM
Representative Weyhrauch MOVED to ADOPT Amendment #2, #24-
GS1009\GA.3, Bullock, 5/4/05. Vice-Chair Stoltze OBJECTED.
Representative Weyhrauch explained that the amendment mostly
addressed grammatical editing language. The proposed
verbiage simply makes it easier to read and understand.
2:09:14 PM
Representative Joule requested clarification regarding those
changes. Representative Weyhrauch explained the need.
2:10:17 PM
Commissioner Fredriksson acknowledged that the amendment
provides a technical clarification and that the Department
would not object.
2:10:47 PM
Representative Weyhrauch MOVED a change to Amendment #2.
(Copy on File). The language inserts a new Section (J): "A
person who applies for a permit under the program has the
opportunity to review a proposed final permit and discuss it
with staff of the department before the department issues
the permit". There being NO OBJECTION, the amendment was
amended.
2:10:57 PM
Vice-Chair Stoltze WITHDREW his OBJECTION. Commissioner
Fredriksson agreed to proposed changes. Amended Amendment
#2 was adopted.
2:12:35 PM
Representative Weyhrauch WITHDREW Amendment #3.
Vice-Chair Stoltze MOVED to RESCIND previous action on
failure to adopt Amendment #4. There being NO OBJECTION,
the action was rescinded.
2:13:27 PM
Vice-Chair Stoltze MOVED to ADOPT Amendment #4 in order that
the sponsor be able to address it. Vice-Chair Stoltze
OBJECTED.
REPRESENTATIVE PAUL SEATON advised the language was added in
the House Resources Committee. He indicated that the
developed permitting process allows public access to the
work group.
Commissioner Fredriksson spoke against the amendment. He
indicated that the Department recognizes their obligation to
the public review process. The Department annually reports
to the Governor and the Legislature and should not be
required to go through an administrative rule making
process. The Department would not support the amendment.
2:17:18 PM
Representative Weyhrauch asked if there were federal EPA
requirements for public notice of meetings. Commissioner
Fredriksson did not know the process required for EPA. He
noted that all meetings regarding the proposed legislation
had been public noticed; however, there had been no
administrative rule making process. The Department was
focused on establishing a work group affected and regulated
by the program.
2:18:26 PM
Representative Weyhrauch asked if the meetings were subject
to Alaskan law Open Meetings Act.
2:19:02 PM
CAMERON LEONARD, (TESTIFIED VIA TELECONFERENCE), ASSISTANT
ATTORNEY GENERAL, DEPARTMENT OF LAW, ANCHORAGE, explained
that under the Open Meetings Act, a meeting of that type
would not be subject to those requirements. Normally, only
government entities with decision-making authority are
subject.
Representative Weyhrauch asked if it was the Department's
intent to provide public notice if the amendment was not
enacted. Commissioner Fredriksson replied the Department
has in the past and does intend to in the future.
2:19:47 PM
Representative Seaton interjected that if the public is not
involved in the front-end process, ultimately, there will be
problems d.
Vice-Chair Stoltze WITHDREW his OBJECTION. Representative
Weyhrauch OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Stoltze, Weyhrauch, Chenault
OPPOSED: Foster, Hawker, Holm, Kelly, Meyer
Representative Croft and Representative Moses were not
present for the vote.
The MOTION FAILED (4-5).
2:21:47 PM
Vice-Chair Stoltze MOVED to ADOPT Amendment #5.
Representative Kelly OBJECTED.
Representative Seaton explained that the amendment allows
the permittee to comment on the draft with the intent to
make a more open process. Commissioner Fredriksson
countered that the Department's idea is to allow the
opportunity for the permit recipient to "have a look" in
case something technical was missing. He stated there are
opportunities for appeal rights for both the applicant and
rd
the 3 parties. If there were significant changes made
during the public comment period, the Department has an
obligation to go back to the public for the changes to be
addressed. He believed the amendment was not necessary to
protect the public's interest.
2:25:16 PM
Representative Weyhrauch commented on potential problems
resulting from public interest groups sending mass mailings
regarding their specific concerns. He asked how
Representative Seaton would address that situation.
Representative Seaton explained that regulators are not
allowed to draft opinions before they come up. He
reiterated it would end up in Court because only one side is
being allowed to testify on the permit process.
2:27:41 PM
Representative Weyhrauch noted language on Page 5, Line 12,
regarding the public process period. The permit is made
public following an internal review and all comments and
emails are subject to disclosure under the Public Records
Act. Representative Seaton argued the need for the
amendment.
2:29:47 PM
Representative Kelly questioned how it would "play out"; he
thought that getting parties together could be difficult and
spoke against the amendment.
2:31:07 PM
A roll call vote was taken on the motion.
IN FAVOR: Croft
OPPOSED: Foster, Hawker, Holm, Kelly, Stoltze,
Weyhrauch, Meyer, Chenault
Representative Joule and Representative Moses were not
present for the vote.
The MOTION FAILED (1-8).
Representative Foster MOVED to REPORT HCS CS SB 110 (FIN)
out of Committee with individual recommendations and with
the accompanying fiscal note. There being NO OBJECTION, it
was so ordered.
HCS CS SB 110 (FIN) was reported out of Committee with a
"no" recommendation and with zero note #1 by the Department
of Fish & Game, zero note #2 by the Department of Natural
Resources, zero note #4 by the Department of Transportation
& Public Facilities and fiscal note #5 by the Department of
Environmental Conservation.
HOUSE BILL NO. 106
An Act establishing the senior care program and
relating to that program; creating a fund for the
provision of the senior care program; repealing ch. 3,
SLA 2004; and providing for an effective date.
2:32:52 PM
JOEL GILBERTSON, COMMISSIONER, DEPARTMENT OF HEALTH & SOCIAL
SERVICES, noted that HB 106 was a bill relating to health
care benefits available to eligible low-income senior
citizens.
In 2004, the Senior Care program was enacted and provided
for needs-based cash assistance and a prescription drug
benefit. Today, approximately 6,800 seniors with incomes
below the 135% percent of the federal poverty level for
Alaska receive $120 a month in cash assistance through the
Senior Care program. The program has been successful in
reaching senior citizens in Alaska that are truly in need of
cash assistance.
Commissioner Gilbertson added that the Senior Care program
is anticipated to sunset no later than January 1, 2006. HB
106 would repeal the temporary law created last year and
replace it with a permanent law that would strengthen the
Senior Care program, allowing it to continue. He stressed
the crucial need for the State to continue providing support
for Alaska's most needy senior citizens beyond January 2006.
The proposal to improve Senior Care would be through
creation of a supplement to the recently enacted federal
Medicare drug benefit for Alaska's seniors. Under the new
federal Medicare benefit, many seniors are still required to
pay premium and deductible expenses for prescription drugs
out of their own pockets. For Alaska seniors with incomes
up to 300% percent of the federal poverty level, Senior Care
would pay the premiums and deductibles on the seniors
behalf; a benefit of approximately $670 dollars per person
annually. Seniors with Medigap or other comparable coverage
would be eligible to receive the benefit as long as they
meet the basic income and asset standards for Senior Care.
Commissioner Gilbertson anticipated over 40% percent of the
estimated 41,000 Alaska seniors would be eligible for the
Senior Care benefit. Passage of the legislation would
result in, virtually all seniors in Alaska being eligible
for prescription drug coverage through a combination of
federal, State, and employer-sponsored drug plans as of
January 2006. That represents an incredible achievement;
adequate prescription drug coverage remains a top priority
for seniors.
2:38:12 PM
MARIE DARLIN, VOLUNTEER, ALASKA ASSOCIATION OF RETIRED
PERSONS (AARP), JUNEAU, voiced strong support for HB 106,
including the amendments before the Committee. She
explained that the bill would be helpful and welcome for
older Alaskans that are most in need. She urged support.
2:40:22 PM
LINDA GOHL, DIRECTOR, ALASKA COMMISSION ON AGING, DEPARTMENT
OF HEALTH AND SOCIAL SERVICES, voiced support for the
legislation. She noted that seniors would prefer the 300%
level, however, HB 106 would provide a reasonable
compromise. The drug benefit program is critical.
2:41:57 PM
Representative Hawker MOVED to ADOPT Amendment #1, #24G-1,
5/5/05. (Copy on File). Co-Chair Chenault OBJECTED for
discussion purposes.
Representative Hawker explained that the amendment would
change federal poverty level amount from 300% to 175% and
sunset June 30, 2007.
Representative Hawker noted changes on the amendment, Page
1, Line 9: "Reverts to the unreserved general fund after
all valid obligations June 30, 2007 are met".
Commissioner Gilbertson voiced support for the amendment.
2:44:37 PM
Co-Chair Chenault WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment #1 was adopted.
Representative Hawker referenced the four fiscal notes from
the Department of Health and Social Services. He inquired
how the funding was anticipated to be spent.
JANET CLARKE, ASSISTANT COMMISSIONER, DIVISION OF FINANCE
AND MANAGEMENT SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, summarized the fiscal note handout. (Copy on
File).
In FY06, it is estimated that the Senior Care Program will
cost $6.87 million dollars; in FY07, the cost will be
$13.212 million dollars. Currently, the fund balance is
$8.86 million dollars. In FY06, no general funds will be
needed for the program because of forward funding. In FY07,
approximately $12 million general fund dollars will be
necessary. The program, currently, will sunset midway FY06.
2:48:17 PM
Representative Hawker asked if the numbers were consistent
with the reconciled ones from the senior cash care benefit.
2:49:06 PM
JON SHERWOOD, DEPARTMENT OF HEALTH & SOCIAL SERVICES, stated
that at this time, there are fewer than 7,000 participants
in the program. It is anticipated that once the program
begins, that number will increase to 7,000. When the drug
benefit is added, the program could increase approximately
4,100, projected by FY07. There is no overlap between those
numbers and that the cash assistance program does not
provide any drug benefit.
2:50:25 PM
In response to comments by Representative Hawker,
Commissioner Gilbertson explained that the statement
regarding cash benefits was accurate and relates to existing
populations. Those individuals will have no premium or
deductible through federal law. There is no way to provide
them the drug benefit. Cash assistance is the only way to
deliver a benefit to them.
2:51:52 PM
Representative Hawker referenced the fiscal note, indicating
the Senior Care fiscal note for four full-time employees.
He asked if any were new positions. Ms. Clarke explained
that in the FY06 budget, the Department eliminated all
Senior Care positions because the program sunset. Many of
those positions still exist and that the note would only ads
them back into employment.
2:52:46 PM
Representative Holm asked if Amendment #1 would affect the
fiscal note. Ms. Clarke replied it did and had been taken
into consideration with the revised note.
2:53:14 PM
Representative Foster MOVED to REPORT CS HB 106 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 106 (FIN) was reported out of Committee with a "no
recommendation" and with four new zero fiscal notes by the
Department of Health & Social Services.
ADJOURNMENT
The meeting was adjourned at 2:54 P.M.
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