Legislature(2013 - 2014)HOUSE FINANCE 519
02/27/2014 12:00 PM House LEGISLATIVE COUNCIL
| Audio | Topic |
|---|---|
| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
FEBRUARY 27, 2014
12:00 PM
MEMBERS PRESENT
Representative Mike Hawker, Chair
Senator Peter Micciche, Vice Chair
Representative Mike Chenault
Representative Max Gruenberg
Representative Lance Pruitt
Representative Bill Stoltze
Representative Peggy Wilson
Senator John Coghill
Senator Mike Dunleavy
Senator Dennis Egan
Senator Charlie Huggins
MEMBERS ABSENT
Representative Craig Johnson
Senator Kevin Meyer
Senator Gary Stevens
OTHER MEMBERS PRESENT
Representative Alan Austerman, Alternate Member
AGENDA
APPROVAL OF MINUTES
RATIFICATION OF CHARITY EVENTS
OTHER COMMITTEE BUSINESS
SPEAKER REGISTER
Pam Varni, Executive Director, Legislative Affairs Agency
12:03:24 PM
I. CHAIR MIKE HAWKER called the Legislative Council meeting to
order at 12:00 p.m. in room 519 of the State Capitol. Present
at the call were Representatives Hawker, Chenault, Pruitt,
Stoltze, and P. Wilson; Senators Micciche, Coghill, Dunleavy,
Egan, and Huggins.
CHAIR HAWKER welcomed Representative Austerman, Legislative
Council alternate member for the House, noting that his vote
was not required as there was a quorum to conduct business.
II. APPROVAL OF MINUTES
12:05:05 PM
VICE CHAIR MICCICHE moved that the minutes from the Legislative
Council meeting on January 30, 2014 be approved as presented.
The motion passed with no objections.
Representative Gruenberg joined the meeting at this time.
III. RATIFICATION OF CHARITABLE EVENTS
12:06:07 PM
CHAIR HAWKER noted that his staff has verified that the
organizations sponsoring the events listed below meet the
statutory requirements to hold certified charity events, all
are 501(c)(3) in good standing. All events were previously
sanctioned by the Chair and must be ratified by Legislative
Council.
VICE CHAIR MICCICHE moved that Legislative Council ratify the
following charity events, which were previously sanctioned by
the Legislative Council Chair in accordance with AS
24.60.080(a)(2)(b):
a. Bowl for Kids' Sake benefitting Big Brothers Big Sisters of
Alaska.
b. Sham Jam benefitting The Canvas
c. Celebrity Waiter Event benefitting the Kenai Peninsula Fair
d. Thanksgiving in March benefitting the Southeast Alaska Food
Bank
The motion passed with no objections.
IV. OTHER BUSINESS
CHAIR HAWKER noted two items of old business not included on
the agenda were being presented now to the Council as follow-up
to previous Legislative Council action. Two letters were passed
out to each Council member: one regarded demonstrations at the
Capitol and the other returning allowance account monies to the
general fund.
Chair Hawker said that when Council adopted a formal policy for
demonstrations in front of the Capitol, a member made a request
to have that policy included in the regular ethics training
that occurs at the beginning of the legislative session. Those
who attended that training this year will note that it was not
included. After several conversations with the Ethics
Committee, their definitive statement was, "The committee
determined by unanimous vote was not under the jurisdiction of
the Select Committee on Legislative Ethics or AS 24.60,
Legislative Ethics Act. No further action will be taken by the
committee or staff regarding this subject."
Chair Hawker said the second document is a memo that relates to
a request made by Representative Gara at a previous Legislative
Council meeting; he wanted to know if he could return money to
the state treasury. Chair Hawker summarized the memo from
Jessica Geary, Finance Manager of the Legislative Affairs
Agency, to say that anyone who wants to give money free and
clear to the State of Alaska is welcome to do so; and those
funds will roll over to the treasury for appropriation in the
subsequent fiscal year.
SENATOR DUNLEAVY asked if the folks involved in the
demonstration were given a letter by the Council explaining any
actions taken or to give them an idea of what was occurring
with their demonstration being interfered with.
CHAIR HAWKER said, as Chair, he could not accurately determine
exactly who was involved in the group to which Senator Dunleavy
referred. There was a lengthy hearing on this subject where
Senate President Huggins brought forward a lengthy series of
emails and communications that he had researched. The hearing
was pretty substantial and a policy was passed that made it
very clear, durably and into the future, there is to be no
interference.
SENATOR DUNLEAVY followed up to ask if the Council would object
to putting together a letter of explanation. He said he could
provide the names and addresses of the folks that were involved
in the demonstration.
CHAIR HAWKER attempted to clarify Senator Dunleavy's request,
who said the folks involved had experienced no closure on this
issue.
SENATOR DUNLEAVY said the letter should say the issue has been
investigated by the Council, whatever findings could be made
public were made public, and that the Council has taken steps
to prevent something like that from happening again.
CHAIR HAWKER said that although he personally has never been
contacted by the folks involved in the demonstration, he has no
problem working with Senator Dunleavy's office to put together
the requested letter.
VICE CHAIR MICCICHE noted that the discussion to which the
Chair referred earlier did not involve Senator Dunleavy as he
was not yet on Legislative Council. It was discussed in detail
in Legislative Council and the policy was created at that time.
He thanked the Legislative Affairs Agency (LAA) for
distributing that policy. Several members suggested that the
policy be put in place with Personnel and distributed widely.
In support of Senator Dunleavy's request, he doesn't know if
there are findings to share but he said he was willing to make
a formal motion that Council does share the policy and
demonstrate what was decided upon as a formal action. He said
he was satisfied with the action that was put forward by LAA.
He said what was made clear was that if there was future
interference that there is a disciplinary process and that it's
a full expectation not only of this body but of managers of LAA
that it would not occur again in the future.
CHAIR HAWKER said he wasn't sure what sort of motion was
needed, that the new policy was included in the staff policies
and procedures handbook, but that every member on this
committee has a right to make a motion.
VICE CHAIR MICCICHE said a motion would just be a formal
agreement that the committee supports that those that were
present at the demonstration receive the suggested
correspondence.
CHAIR HAWKER asked that Vice Chair Micciche state clearly in
his motion that the Chair is directed by the committee to
correspond in some manner with the folks that were part of that
demonstration. He added that it should say "to the best of his
ability" as he will have to rely completely on someone else's
assurance as to who receives the letter.
12:15:13 PM
VICE CHAIR MICCICHE moved that Legislative Council supports a
response to the demonstrators of the first week of April 2013,
framing the actions taken by Legislative Council toward a
formal policy established on April 23, 2013.
The motion passed with no objection.
CHAIR HAWKER said he would make sure everyone on the committee
received a copy of the letter.
SENATE PRESIDENT HUGGINS said his comment was in reference to
the January 30, 2014 letter from the Select Committee on
Legislative Ethics. This is not about the Select Committee but
there's a document called the Standards of Conduct Handbook;
and if there's anything more fundamental than people being able
to assemble outside this Capitol and what the standards of
conduct for people that are on the staff in the Legislature,
that is about as precise a document that tells us the things to
be aware of that we should or should not do. He said he finds
it a little perplexing how it wouldn't be in the handbook about
freedom to assemble and what we can do as professionals, either
elected or hired.
CHAIR HAWKER said he could not agree more. When he first
received the initial rejection, which he followed up on and
which resulted in this issue going to the full Ethics
Committee, he felt the same way. He said he thinks we are at a
point in the Legislature where we need to take a very serious
look at a complete re-write and reconsideration of our ethics
laws. He said, frankly, in the conversations he has been having
with others, the interpretations being made by the Alaska
Public Offices Commission are ludicrous. He added that he is
familiar with at least one instance very recently where an
interpretation and ruling was made by APOC that was exactly
contrary to and disregarded law that has been passed in very
recent years. He thinks the Ethics Committee is in some of the
same situations where we believe they are not performing in the
best interest of the public or the Legislature. He said we need
to take a good look at a complete re-write of our APOC and
ethics statutes in some way some time in the near future.
SENATE PRESIDENT HUGGINS said he would go one step further in
that there are a number of bulletin boards and there are some
things that we are required to have posted on those bulletin
boards. He said in his estimation, the business of
demonstrators should be one of them until we prove to ourselves
that we can remember what we are supposed to do or not do
because we weren't very accountable last year.
CHAIR HAWKER responded that it would be the prerogative of the
Rules Chairs and the House Rules Chair is not present at the
moment. He said he felt very comfortable that the Rules Chairs
would be receptive to the request.
a. Legislative Budget
CHAIR HAWKER asked Pam Varni to come forward to speak to this
issue, noting that the short form of the Legislature's budget
was distributed to everyone on Legislative Council. This has
largely been developed by LAA, anticipating what we have, what
we need and what we're anticipating needing in the next fiscal
year. This is the FY 15 budget. He said to focus on the
allocation summary governor's structure which is always the
top-end, highest summary of the budget, that page that starts
with the FY 13 final, the FY 14 conference committee, the FY 14
authorized, the FY 15 adjusted base governor's amend, and then
the Council's request.
He said folks will notice in the details that have been
distributed, the FY 14 authorized to Council request is a $2.9
million increment; and that basically, this budget is a carry-
forward budget except for three items. He said there were two
pieces of legislation passed in the last legislative session
that had to be included in the budget. The first is HB 30, the
Speaker's bill that requires performance audits of state
agencies; HB 30 had a fiscal note of approximately $1.4 million
that has been incorporated in our budgets. Also passed was SB
95, which is the bill that was short-titled as "Compensation of
Non-covered Employees," providing for certain salary
adjustments. The cumulative amount of the fiscal note for LAA
that needs to be incorporated into the FY 15 budget is $1.7
million give or take a little. Part of that did get utilized in
FY 14 but the full implementation is a $1.7 million increase as
a result of passing that legislation. We also have the
Anchorage LIO transaction, which is an increase of $3.3
million. At this time, he noted that the upcoming executive
session will include a conversation about further evolution of
the Anchorage LIO item that will likely have the result of
reducing that increase. The discussion will occur in executive
session because it is a transaction in process.
CHAIR HAWKER asked if Ms. Varni had any further comments on the
fundamental budget as it is put together.
REPRESENTATIVE GRUENBERG asked for the figure on HB 30 and
Chair Hawker responded that it was $1.4 million and that money
went to the Legislative Audit Division to hire additional
auditors and consultants that are involved in the performance
reviews of state agencies.
PAM VARNI, Executive Director of the Legislative Affairs
Agency, said that the Chair had summarized this item quite well
and that she would be glad to answer any questions that any of
the members have. Last year, the budget submission was a zero
increase and she believed Council did not reflect about
$435,000 that was put in, so we absorbed quite a bit last year.
She said she prepared the detail budget for the Legislative
Council RDU and also the Legislative Operating Budget RDU. The
Budget and Audit Committee RDU, which is comprised of
Legislative Audit, Legislative Finance and Committee Expenses,
goes directly to the Budget and Audit and Finance Committees,
and not to Legislative Council.
VICE CHAIR MICCICHE asked if there were other areas Council
should be looking at that caused the increase or is the $6.4
million the total of HB 30, SB 95 and the increased cost for
the LIOs.
MS. VARNI said there are also CPI increases for legislative
leases throughout the state. There are increases in legislative
organization dues, as well as increased fees from the
Department of Administration based on technology increases at a
per employee rate. She said these are small increases.
CHAIR HAWKER interrupted to add that the aggregate for those
small increases is around $200,000. Ms. Varni agreed.
MS. VARNI said the detail budget that was submitted to the
Chair and that will go on to the Finance Committees included: a
zero increase for Legislator Salaries and Allowances; a zero
increase for Administrative Services; a zero increase for
Council and Subcommittees; a zero increase for Legal and
Research Services; a $6,900 increase for the Ethics Committee;
a $37,300 increase for Office of Victims' Rights; a $44,800
increase for Office of the Ombudsman; a zero increase for
Session Expenses; a zero increase for the Legislative Operating
Budget; and a $142,200 increase for the Legislature's State
Facilities Rent. The increases noted total $231,000 from the
governor's figures. The other large increases are a result, as
the Chair previously outlined, of HB 30, SB 95 and the
Anchorage office space. The increase in the Anchorage office
space was put into the governor's figures.
VICE CHAIR MICCICHE said it would be helpful to see the
legislative department budgets on a one-page summary.
MS. VARNI said there is additional detail included which talks
about what each component does, resulting in a three and one
half page document, and she would be glad to provide that to
the members.
CHAIR HAWKER said, for the record, the budget that was provided
to members does include the transaction detail, which has all
of these numbers in every finite detail but that an executive
summary would be provided to Senator Micciche.
In response to a request by Representative Gruenberg, Chair
Hawker agreed that the executive summary would be provided to
every member of Legislative Council by Juli Lucky of his staff.
He said as a procedural note, this is the budget request for
the Legislature for next year that goes from here to the co-
chairs of the House and Senate Finance Committees where it then
becomes completely subject to the entire Finance Committee
process of further review. Any amendment, change, or
modification that the Finance Chairs wish to do, they have
complete and total authority to do. Council is simply
submitting the LAA request to the Finance Committees for
further action.
12:29:31 PM
VICE CHAIR MICCICHE, after saying that he hopes the
subcommittees would scrub the budget with the Chair in detail,
moved that, in accordance with AS 24.40.130, Legislative
Council approve the FY 15 proposed Legislature Budget and
transmit it to the House and Senate Finance Committees for
their review and action.
The motion passed with no objections.
b. Financial Transactions in Process
CHAIR HAWKER noted Council would be going into executive
session to discuss two areas of ongoing financial transactions.
One will be the Alaska State Capitol, Seismic Retrofit &
Exterior Renovation and the other is the Anchorage legislative
office facility.
12:30:39 PM
VICE CHAIR MICCICHE moved that Legislative Council go into
executive session under Uniform Rule 22 (b) for the discussion
of matters, the immediate knowledge of which would adversely
affect the finances of a government unit.
CHAIR HAWKER, in response to a question by Senator Coghill,
said those that are here with Legislative Council know who is
to stay for executive session, and that any member that wishes
to have their executive staff stay are welcome to have them
stay.
The motion to go into executive session passed with no
objection.
The committee went into executive session.
The committee came out of executive session.
12:32:05 PM
VICE CHAIR MICCICHE said that during the discussion about the
furnishings study where Council appropriated $100,000, it was
his understanding that it was an evaluation of building needs
for office furnishings; an assessment of existing furniture for
continued use in the building unless those furnishings were no
longer serviceable; and, once the study was complete and we
understand where we are going, the remaining funds would
actually go toward the purchase of furnishings. He said he and
many others have received a lot of questions about this item
and said it was in Council's best interest that this be a very
transparent process. He requested a status report of that study
and any potential for remaining funds at the next meeting.
CHAIR HAWKER, correcting the Vice Chair on one item, said that
the authority was not to exceed $100,000 and the contract is
for approximately $65,000 to complete the study. The parameters
of the contract require the architect and design people to work
with LAA first on an inventory of the assets and then
identification of additional assets that are going to be
required to finish the facility. He said to Ms. Varni directly,
with that correction, he presumes that we will be absolutely
ready to have an update on this item.
MS. VARNI, responding to Vice Chair Micciche, said this is an
ongoing study working with Chairman Hawker's office, the Supply
office, her office, as well as the architects on this project.
She said every piece of furniture will be assessed but asked
that members realize there is a lot of very old furniture that
might need to be surplused. There are existing legislative
funds once that assessment is done and we realize what
furniture will be required.
VICE CHAIR MICCICHE said he looked forward to the report. He
further said that communication on a project such as this is
very important. What is hard for some Alaskans to understand is
the scale of this project. When we're dealing with an
appropriation with many zeroes, we're also talking about
furnishing a very large building and he thinks the report will
help folks understand the scale and that, in the case of office
furnishings, we're certainly being thrifty with Alaska state
dollars.
REPRESENTATIVE STOLTZE made an announcement that the Finance
Committee meeting immediately following this meeting would be
delayed for 10 minutes to allow for transition purposes.
There being no further business before the committee, the
Legislative Council meeting was adjourned at 1:30 p.m.
1:29:54 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| Agenda.pdf |
JLEC 2/27/2014 12:00:00 PM |
|
| REVISED Agenda 2014.02.25.pdf |
JLEC 2/27/2014 12:00:00 PM |
|
| III. Charitable Events - UPDATED 2-25.pdf |
JLEC 2/27/2014 12:00:00 PM |
|
| IVa. Legislature Budget.pdf |
JLEC 2/27/2014 12:00:00 PM |
|
| IVa. Legislature Budget Component Change Recap.pdf |
JLEC 2/27/2014 12:00:00 PM |
|
| Memo - Deposits to GF.pdf |
JLEC 2/27/2014 12:00:00 PM |
|
| Letter - Ethics Committee re Demonstrations Training.pdf |
JLEC 2/27/2014 12:00:00 PM |