Legislature(2017 - 2018)SENATE FINANCE 532
04/23/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB147 | |
| HB176 | |
| HB213 | |
| HB216 | |
| HB267 | |
| HB400 | |
| HB212 | |
| HB216 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 147 | TELECONFERENCED | |
| += | HB 176 | TELECONFERENCED | |
| += | HB 213 | TELECONFERENCED | |
| += | HB 216 | TELECONFERENCED | |
| += | HB 267 | TELECONFERENCED | |
| += | HB 400 | TELECONFERENCED | |
| + | HB 212 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 23, 2018
9:04 a.m.
9:04:53 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:04 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Peter Micciche
Senator Donny Olson
Senator Gary Stevens
MEMBERS ABSENT
Senator Natasha von Imhof
ALSO PRESENT
Representative Steve Thompson, Sponsor; Rob Earl, Staff,
Representative Wool; Juli Lucky, Staff, Senator Anna
MacKinnon; Alexei Painter, Legislative Finance, In Room;
Mike Barnhill, Deputy Commissioner, Department of Revenue;
Representative Justin Parish, Sponsor; Kelly Cunningham,
Analyst, Legislative Finance Division; Doug Wooliver,
Deputy Administrative Director, Alaska Court System;
Representative Chuck Kopp, Sponsor; Tim Clark, Staff,
Representative Edgmon; Representative Jonathan Kreiss-
Tomkins, Sponsor; Representative Neal Foster, Sponsor; Jane
Pierson, Staff, Representative Foster; Tim Mearig,
Facilities Manager, Department of Education and Early
Development.
PRESENT VIA TELECONFERENCE
Margaret Brodie, Director, Division of Healthcare Services,
Department of Health and Social Services; Taylor Winston,
Office of Victims' Rights, Alaska Legislature; April
Wilkerson, Director, Administrative Services, Department of
Corrections.
SUMMARY
SSHB 147 PUBLIC ACCOUNTING
SSHB 147 was REPORTED out of committee with a "do
pass" recommendation and with one previously
published fiscal impact note: FN 1(CED).
CSHB 176(FIN)
EMER. MEDICAL TRANSPORT SERVICE PAYMENTS
CSHB 176(FIN) was REPORTED out of committee with
a "do pass" recommendation and with two
previously published fiscal impact notes: FN
3(DHS) and FN 4(DHS).
CSHB 212(RLS)
REAA & SMALL MUNI SCHOOL DISTRICT FUND
CSHB 212(RLS) was HEARD and HELD in committee for
further consideration.
CSHB 213(FIN)(efd fld)
PUBLIC SCHOOL TRUST FUND
SCS CSHB 213(FIN) was REPORTED out of committee
with a "do pass" recommendation and with one new
zero fiscal note from the Department of Education
and Early Development, one new fiscal impact note
for the Department of Education and Early
Development from the Senate Finance Committee,
and one previously published fiscal impact note
from the Department of Education and Early
Development.
CSSSHB 216(FIN) am
CRIMES;RESTITUTION;DIVIDEND FUND
CSSSHB 216(FIN) was REPORTED out of committee
with a "do pass" recommendation and with a new
fiscal impact note from the Department of
Corrections; and a new fiscal impact note from
the Legislature; and with seven previously
published fiscal notes, three zero notes:
FN2(DHS), FN3(DHS), FN8(LAW); three with fiscal
impact: FN7(REV), FN9(ADM), FN10(ADM/FUND CAP);
and one indeterminate note: FN 13(AJS).
CSHB 267(RES)
RELEASE HUNTING/FISHING RECORDS TO MUNI
CSHB 267(RES) was HEARD and HELD in committee for
further consideration.
HB 400 FEES FOR FIRE PREVENTION MEASURES
HB 400 was REPORTED out of committee with a "no
recommendation" recommendation and with one new
fiscal impact note from the Department of Public
Safety.
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 147
"An Act relating to the Board of Public Accountancy;
relating to the licensure of public accountants; and
relating to the practice of public accounting."
9:05:57 AM
Co-Chair MacKinnon relayed that the bill was presented on
April 18, 2018; and the public hearing was opened and
closed.
REPRESENTATIVE STEVE THOMPSON, SPONSOR, offered a Sponsor
Statement:
SSHB 147 is a bill that updates the statutes in Title
8 (Business and Professions), Chapter 4 (Accountants).
The National Association of State Boards of
Accountancy (NASBA) and the American Institute of
Certified Public Accountants (AICPA) provided the
Alaska Board of Public Accountancy under the
Department of Commerce, Community, and Economic
Development with a summary of areas where the Alaska
statutes and regulations for public accountancy differ
from the Uniform Accountancy Act or AICPA's Code of
Professional Conduct.
The proposed statute changes will align the Alaska
statutes and regulations for public accountancy with
these national organizations.
Many of the changes in the bill are housekeeping
items. Some changes expand existing language to
provide more information or clarity, while other
changes remove unnecessary language or condense it.
Senator Olson asked whether older accountants had displayed
resistance to the regualtion changes.
9:08:37 AM
Representative Thompson stated that he had not encountered
opposition to the bill.
9:09:21 AM
Vice-Chair Bishop MOVED to report SSHB 147 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SSHB 147 was REPORTED out of committee with a "do pass"
recommendation and with one previously published fiscal
impact note: FN 1(CED).
9:09:49 AM
AT EASE
9:11:13 AM
RECONVENED
CS FOR HOUSE BILL NO. 176(FIN)
"An Act relating to medical assistance reimbursement
for emergency medical transportation services; and
providing for an effective date."
9:11:13 AM
Co-Chair MacKinnon offered a brief history of the bill. The
public hearing had been opened and closed.
ROB EARL, STAFF, REPRESENTATIVE WOOL, stated that the bill
directed the department to develop a program that would
provide supplemental reimbursement to eligible air, ground,
or water emergency medical transportation services for the
cost of transporting Medicaid assistance recipients.
Co-Chair MacKinnon asked about the frequency with which
municipalities would be reimbursed.
MARGARET BRODIE, DIRECTOR, DIVISION OF HEALTHCARE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES (via
teleconference), responded that municipalities would be
reimbursed quarterly, at the minimum.
Vice-Chair Bishop MOVED to report CSHB 176(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 176(FIN) was REPORTED out of committee with a "do
pass" recommendation and with two previously published
fiscal impact notes: FN3(DHS) and FN4(DHS).
9:13:55 AM
AT EASE
9:15:20 AM
RECONVENED
CS FOR HOUSE BILL NO. 213(FIN)(efd fld)
"An Act relating to the investment, appropriation, and
administration of the public school trust fund."
9:15:20 AM
Co-Chair MacKinnon discussed a brief history of the bill.
The public hearing had been opened and closed.
Vice-Chair Bishop MOVED to ADOPT proposed committee
substitute for CSHB 213(FIN), Work Draft 30-LS0765\T
(Wallace, 4/18/18).
Co-Chair MacKinnon OBJECTED for discussion.
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, explained that
the CS reflected one change to the bill that could be found
on Page 2, line 23, where the percentage had been update to
5 percent.
ALEXEI PAINTER, LEGISLATIVE FINANCE, stated that the impact
of the bill would be to increase the draw by approximately
$1.4 million in FY 19, which was in the general range of
POMV draws.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, it was so ordered.
MIKE BARNHILL, DEPUTY COMMISSIONER, DEPARTMENT OF REVENUE,
concurred with the change to the bill as described by the
previous testifiers.
Co-Chair MacKinnon asked whether
Mr. Barnhill answered in the affirmative.
9:18:34 AM
Senator Olson queried the lifespan of the corpus of the
Public School Trust Fund.
Mr. Barnhill replied that the trust was intended to be of
indefinite duration. The trust would last forever if it was
managed appropriately, which meant maintaining the
inflation adjusted value of deposits. He assured the
committee that the trust had a substantial financial
cushion at $650 million and a 5 percent draw over the next
10 years should not reduce the cushion below the inflation
adjusted value of the fund.
9:20:20 AM
Senator Olson asked whether the same would be true when
considering the legislature's penchant for spending.
Mr. Barnhill thought that the legislature had multiple sets
of stakeholders to which it was responsible. He believed
that in the end the legislative process resulted in prudent
expenditures, particularly in the case of trust funds. He
relayed that there were fiduciary duties that applied to
the fund and he felt that it would be unlikely that the
legislature would intentionally overspend from a fund for
which fiduciary duties applied.
9:21:10 AM
Senator Stevens asked whether the department would always
have a better turnover on investments than the APFC.
Mr. Barnhill answered in the negative. He spoke highly of
the investment management staff at APFC and at the
Department of Revenue. He stated that you could beat the
market some of the time, but it was unlikely that you could
beat it all the time. He said that the challenge of all
investment professionals was to stay ahead of the game as
much as possible but sometimes the challenges could be
insurmountable.
Co-Chair MacKinnon asked Mr. Barnhill to explain the
revenue stream that went to the Public School Trust Fund.
Mr. Barnhill elaborated that there was a 1 percent revenue
stream that was dedicated to the fund by statute. He
elaborated that the revenue stream had come in annually
since 1978, which had contributed to the sizeable balance.
Co-Chair MacKinnon added that it had been difficult to
calculate income from the fund and to anticipate what could
be used in any given budget. She said that the method in
the bill would provide a clear path for the legislature to
understand the funds available and the "up to" amount.
9:23:30 AM
REPRESENTATIVE JUSTIN PARISH, SPONSOR, stated that the bill
would modernize the Public School Trust Fund by bringing it
up to the current standard to allow a larger sustainable
draw and a high rate of earnings.
Co-Chair MacKinnon asked whether the sponsor wanted to
speak to the changes in the cs.
Representative Parish commented that the change fell within
the industry standard.
9:24:54 AM
Vice-Chair Bishop MOVED to report SCS CSHB 213(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 213(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal note from
the Department of Education and Early Development, one new
fiscal impact note for the Department of Education and
Early Development from the Senate Finance Committee, and
one previously published fiscal impact note from the
Department of Education and Early Development.
9:25:18 AM
AT EASE
9:27:06 AM
RECONVENED
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 216(FIN) am
"An Act relating to restitution; relating to the
office of victims' rights; relating to transfers from
the dividend fund; creating the restorative justice
account; relating to appropriations from the
restorative justice account for services for and
payments to crime victims, operating costs of the
Violent Crimes Compensation Board, operation of
domestic violence and sexual assault programs, mental
health services and substance abuse treatment for
offenders, and incarceration costs; relating to
contributions from dividends; relating to delinquent
minors; and providing for an effective date."
9:27:06 AM
Co-Chair MacKinnon gave a brief history of the bill. She
noted public testimony had been opened and closed.
9:28:01 AM
AT EASE
9:30:59 AM
RECONVENED
KELLY CUNNINGHAM, ANALYST, LEGISLATIVE FINANCE DIVISION,
discussed the fiscal notes. She discussed FN2, OMB
Component Number 3099, DHSS, Behavioral Health, Behavioral
Health Treatment and Recovery; the note had zero fiscal
impact. She continued to FN13, OMB Component Number 769,
ACS, Alaska Court System, Administration and Support; the
note was indeterminate and little fiscal impact was
expected.
9:33:21 AM
DOUG WOOLIVER, DEPUTY ADMINISTRATIVE DIRECTOR, ALASKA COURT
SYSTEM, stated that FN13 was indeterminate, as the
department did not know whether the legislature would
appropriate money to pay restitution. He said that should
the legislature appropriate a substantial amount of money
to the Office of Victims Rights for purposes of paying
restitution, it would have a fiscal impact on the system.
He said that if a person would be hired to do the work
there would currently be no work to do.
Co-Chair MacKinnon asked for the cost of the position.
Mr. Wooliver stated that originally a half-time position
was considered at $35 thousand annually. A full-time
position would be closer to $75 or $80 thousand annually.
9:35:04 AM
Ms. Cunningham addressed FN11, OMB Component Number 2952,
Department of Corrections (DOC), Health and Rehabilitation
Services. The note contained that largest fund change of
the set of notes. The bill would change the PFD Criminal
fund to the Restorative Justice fund, the bulk of the PFD
criminal funds were in DOC, which meant that the $11
million fund change and the $430 thousand UGF would keep
DOC whole. Another fiscal note in the packet would reflect
the reflect a decrease in UGF for DOC. She said that the
net UGF total of all the fiscal notes was $262.5 thousand.
Co-Chair MacKinnon asked whether the bill would result in a
change in regulation.
Ms. Cunningham responded that she could not speak to the
question.
Senator Micciche observed that the bill would change the
order of distribution. He wondered whether DOC programs
would suffer decreased funding because of the fund change.
Ms. Cunningham replied that the bill listed the percentages
of distribution by priority, DOC was the fifth on the list.
She stated that the allocation would appropriate much of
the fund to DOC healthcare. She said that the bill set up
guidance for future appropriations and DOC would not
experience a significant fund change.
Co-Chair MacKinnon stated that the answer to Senator
Micciche's questions was yes. She said that DOC would
become less of a priority for payment out of the fund, that
the bill prioritized victims over felons. She explained the
priority list on the fiscal note:
This bill establishes a new priority order for
allocation of these funds as follows:
1. Crime Victim Compensation Fund (AS 18.67.162)
2. Office of Victim's Rights for payments to victims
3. Nonprofit organizations to provide grants for
mental health and substance abuse services
4. Nonprofit organizations to provide grants for
services for crime victims and domestic violence and
sexual assault
programs
5. Programs in the Department of Corrections
9:39:18 AM
Senator Micciche stated he prioritized victim's over the
corresponding perpetrators. He thought it was difficult to
understand the full impact of the fiscal notes.
Ms. Cunningham addressed FN 10, OMB Component Number 2936,
Fund Capitalization, Crime Victim Compensation Fund. She
stated that FN9, OMB Component 2694, Department of
Administration (DOA), Violent Crimes Compensation Board,
was to be considered in conjunction with FN10. She pointed
out that FN 10 showed $1.2 million from the new fund
replacing $1 million of the PFD criminal fund, leaving a
net of $178.7 thousand. Those net funds would be
appropriated to the Violent Crimes Compensation Board who
would then distribute those funds to victims of violent
crimes.
Senator Micciche understood the total fund shift was $178.7
thousand.
Ms. Cunningham answered in the affirmative.
9:41:52 AM
AT EASE
9:48:40 AM
RECONVENED
Co-Chair MacKinnon solicited further questions on FN9 and
FN10.
Ms. Cunningham addressed FN12, OMB Component 2769,
Legislature, Office of Victims Rights. She detailed that
the note reflected a $251.4 thousand of the new fund, with
an offsetting $167.6 in UGF, that would give the office
$83.8 thousand to fund a one-time position. The position
was needed to transfer the data base from the judiciary and
to update all restitution records so that restitution
payments could be coordinated.
Co-Chair MacKinnon observed that there was no note
pertaining to associated regulation change. She thought
that the changes were in funding source alone and would not
require regulation changes. He hoped someone could speak to
the question of regualtion changes.
Ms. Cunningham understood that the temporary position would
be entering records from the judiciary so that they could
coordinate payments.
Co-Chair MacKinnon read from the fiscal note:
FY19 One-Time Increment: A full-time, nonpermanent
employee at a Range 13 would be needed for one year
(12 months) to perform data entry and establish
electronic files for all restitution judgements with
unpaid balances; the Court System statistics indicate
that there are 20,000 restitution judgments with
unpaid balances.
9:51:11 AM
Ms. Cunningham addressed FN7, OMB Component 981, Department
of Revenue (DOR), Permanent Fund Dividend Division. She
relayed that the note reflected $20 thousand in UGF for
FY19 for the division to take care of programming needs.
The costs went down $5 thousand in the out years and
maintained a $15 thousand base.
Co-Chair MacKinnon noted that PFD had testified that their
costs were unknown until they knew the volume of the
payments.
Vice-Chair Bishop interjected that the bill would require a
change in regualtion.
9:52:15 AM
Ms. Cunningham addressed FN8, OMB Component Number 2717,
Department of Law (LAW), Commercial and Fair Business. The
note had zero fiscal impact.
Ms. Cunningham addressed FN3, OMB Component Number 2134,
Department of Health and Social Services, Juvenile Justice,
Probation Services. The note had zero fiscal impact.
Co-Chair MacKinnon commented that there were remaining
administrative questions that pertained to the fiscal
notes.
9:53:03 AM
Co-Chair MacKinnon stated that the committee had further
questions concerning the fiscal notes.
REPRESENTATIVE CHUCK KOPP, SPONSOR, hoped to answer the
questions.
Co-Chair MacKinnon noted that the questions needed to be
answered by the administration.
HB 216 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 267(RES)
"An Act requiring the release of certain records
relating to big game hunters, guided hunts, and guided
sport fishing activities to municipalities for
verification of taxes payable; and providing for an
effective date."
9:54:16 AM
Co-Chair MacKinnon gave a brief history of the bill. She
noted that public testimony had been opened and closed.
TIM CLARK, STAFF, REPRESENTATIVE EDGMON, offered a sponsor
statement:
For boroughs and other municipalities that bring in
revenues through levies on fish and game guiding,
CSHB267(RES) will provide a tool to help confirm that
activities within their jurisdictions subject to
taxation are being accurately reported to them. The
bill would allow municipalities access to certain
records collected by the state that relate to big game
hunters, guided hunts, and guided sport fishing for
the purpose of verifying taxes payable. All such
information would remain confidential.
The access that CSHB267(RES) permits municipalities is
modeled after long-existing provisions in AS
16.05.815(a)(4) and AS 43.75.133, both of which allow
local governments to review certain records, reports,
and returns to verify payment of local commercial
fishing taxes.
With state-government cutbacks resulting in greater
responsibilities and costs being borne by local
governments, all necessary resources should be made
available to our municipalities to ensure they are
receiving the revenues due to them according to their
local ordinances.
Co-Chair MacKinnon summarized that the bill was for
municipalities trying to collect sales tax from
individuals.
Mr. Clark stated that the tax would take the form of a per-
person, per-day fee. He used the example of the Lake and
Peninsula Borough where a charge of $3, per-person, per day
was charged to clientele. He likened it to a hotel bed tax.
Vice-Chair Bishop discussed FN1, OMB Component 473,
Department of Fish and Game, Wildlife Conservation. The
note reflected zero fiscal impact. He read from the
analysis:
Hunting log and registration records that would be
released to municipalities under this legislation are
handled entirely by the Department of Commerce,
Community, and Economic Development (DCCED), Division
of Corporations, Business, and Professional Licensing,
Big Game Commercial Services Board.
Vice-Chair Bishop addressed FN2, OMB Component 2360,
Department of Commerce, Community, and Economic
Development, Corporations, Business and Professional
Licensing. The projected cost for FY19 was $7,700. He read
from the analysis:
If the bill passes the following expenses will be
incurred:
Services:
$2.7 (regulations project)
$5.0 (information technology costs to create reports
from the licensing database)
Professional licensing programs within the Division of
Corporations, Business and Professional Licensing are
funded by Receipt Supported Services, fund source 1156
Rcpt Svcs (DGF). Licensing fees for each occupation
are set per AS 08.01.065 so the total amount of
revenue collected approximately equals the
occupation's actual regulatory costs.
Vice-Chair Bishop addressed FN4, OMB Component 464,
Department of Fish and Game, Sport Fisheries. The note
reflected a fiscal impact in FY19 of $9,100. He recommended
that each member read the attached analysis.
10:00:11 AM
AT EASE
10:02:12 AM
RECONVENED
Co-Chair MacKinnon referenced FN4. She explained that under
the "Changes in Revenue" line the code 1251, Non-UGF
(Other) would be stricken and amended to reflect 1005,
GF/Program DGF.
There being NO OBJECTION, it was so ordered. FN 4 was
amended
Senator Micciche wondered whether the change would alter
the fiscal impact of the note.
Co-Chair MacKinnon replied in the negative. She explained
that the fund source would be changed, but not the actual
numbers.
Senator Micciche pointed to a letter from the Big Game
Commercial Services Board that had expressed
confidentiality concerns.
Mr. Clark stated that every concern that was brought
forward by the board had been amended in the other body.
10:06:05 AM
Senator Micciche asked whether the sponsor had received an
updated letter from the board.
Mr. Clark responded in the negative. He said that he had
received assurances from guided hunting associations,
associated with the board, that the board was not concerned
about the impacts of the legislation.
Co-Chair MacKinnon announced that confirmation on the
matter should be made with the board.
CSHB 267(RES) was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 400
"An Act relating to the collection of fees by the
Department of Public Safety for fire and explosion
prevention and safety services."
10:06:52 AM
Co-Chair MacKinnon gave a brief history of the bill. The
public hearing on the bill had been opened and closed.
Vice-Chair Bishop addressed a new fiscal note from the
Department of Public Safety. He read from the analysis:
Should this bill pass, DPS would immediately begin the
regulation process to establish the fee amounts for
these services. Though the fee amounts will not be
finalized until completion of the regulation process,
the following amounts are suggested as a potential
starting point:
Fire Inspections - $50 per hour with a one-hour
minimum. DFLS anticipates the average inspection to
take two hours. The goal is to accomplish 1,500
inspections per year; but currently 500 is more
likely. Considering 500 two-hour inspections per year
at $50 per hour, the estimated annual revenue would be
$50,000.
Fire Systems Technician Permits - $150 for a 3-year
permit. There are currently 535 active permit holders.
Permit renewals are staggered resulting in an average
of 178 permit renewals per year. The estimated annual
revenue from issuance of these permits would be
$26,700.
Fire Extinguisher Technician Permits - $100 for a
3-year permit. There are currently 231 active permit
holders. Permit renewals are staggered resulting in an
average of 77 permit renewals per year. The estimated
annual revenue from
issuance of these permits would be $7,700.
Based on the analysis above, the total estimated
annual revenue would be $84,400. The actual fee
amounts will not be known until the regulations
process is completed. FY2019 revenue is estimated at
$42,200 based on the anticipated
effective date of the regulations.
10:09:37 AM
AT EASE
10:10:00 AM
RECONVENED
Co-Chair MacKinnon introduced the bill sponsor.
REPRESENTATIVE JONATHAN KREISS-TOMKINS, SPONSOR, stated
that the bill came out of the House Finance Subcommittee
process in which the Department of Public Safety made a
recommendation during the subcommittee process. He shared
that the bill broadens the services that Fire and Life
Safety could offer and their ability to collect fees for
those services.
Vice-Chair Bishop MOVED to report HB 400 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 400 was REPORTED out of committee with a "no
recommendation" recommendation and with one new fiscal
impact note from the Department of Public Safety.
10:12:17 AM
AT EASE
10:14:47 AM
RECONVENED
CS FOR HOUSE BILL NO. 212(RLS)
"An Act relating to funding for school construction
and major maintenance; relating to the regional
educational attendance area and small municipal school
district fund; and providing for an effective date.
10:14:47 AM
Co-Chair MacKinnon read the title of the bill.
10:15:22 AM
AT EASE
10:15:44 AM
RECONVENED
REPRESENTATIVE NEAL FOSTER, SPONSOR, offered a brief
Sponsor Statement:
House Bill 212 expands the Regional education
attendance area and small municipal school district
fund to include major maintenance in addition to new
school construction.
The Regional education attendance (REAA) fund was
established during the 2010 legislative session. This
fund was created to provide equity in school
construction funding for rural Alaska pursuant to the
Kasayulie decision. This new fund created a funding
stream to pay for prioritized REAA projects on the
department's annual Capital Improvement Project (CIP)
school construction list. In 2013 small municipal
school districts were included in the REAA fund, as
qualified under AS 14.11.025.
HB 212 would allow for REAAs and small municipal
school districts to fund major maintenance as well as
school construction under AS 14.11.030, the regional
educational attendance area and small municipal school
district fund.
JANE PIERSON, STAFF, REPRESENTATIVE FOSTER, discussed the
Sectional Analysis (copy on file):
Section 1. Amends AS 14.11.030 - The regional
education attendance area and small municipal school
district fund (a) to include major maintenance as well
as new school construction.
Sec. 2. Amends AS 14.11.030(b) To clarify that the
maximum statutory fund balance should be calculated to
include only the unexpended and unobligated balance of
the REAA fund.
Sec. 3. Adds a new sub-section (e) to AS 14.11.030
that states that up to 20% of the available fund
balance in a fiscal year can go to school maintenance.
Sec. 4. Amends AS 14.11.035 The Report on School
Construction and Major Maintenance Funding to include
reporting on state aid for major maintenance.
Sec. 5 Adds an effective date of July 1, 2021
10:18:04 AM
Co-Chair MacKinnon asked about the July 1, 2021 effective
date.
Ms. Pierson referenced Attachment 3 in the bill packet
(copy on file). She noted that there were three schools on
the list that carried large monetary amounts. The intent of
the effective date was to make sure that the true nature of
the fund, to fund new school construction, was preserved.
Representative Foster thanked the committee.
Co-Chair MacKinnon OPENED public testimony.
Co-Chair MacKinnon CLOSED public testimony.
10:19:43 AM
Vice-Chair Bishop discussed FN1, OMB Component 2737,
Department of Education and Early Development, School
Finance and Facilities. He read from the analysis:
The bill will require changes to regulations to
identify the priority lists, which currently is just
the School Construction Grant Fund list and the Major
Maintenance Grant Fund list. It is anticipated that
necessary regulation changes could occur with current
staffing.
There is no fiscal impact to the department under this
bill.
Co-Chair MacKinnon returned to her query into the effective
date, and maintenance funds. She wondered why the bill
would hold off on implementation until 2021.
TIM MEARIG, FACILITIES MANAGER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, understood that sponsor wanted to
preserve the priority of large projects on the school
construction list.
10:23:31 AM
Senator Olson voiced the same concern that there was three
additional years of facility deterioration to consider with
an effective date of 2021. He mentioned climate change and
geographic weather concerns.
10:24:15 AM
AT EASE
10:28:07 AM
RECONVENED
Co-Chair MacKinnon reminded that the committee was
discussing HB 212.
Vice-Chair Bishop commented that the committee had a
recurring conversation regarding standardization of school
construction. He considered the importance of crafting a
standardization policy for school construction.
Co-Chair MacKinnon commented that the committee had asked
inserted intent language that requested that the department
investigate standardization of school construction and the
department had responded, through the Legislative Budget
and Audit process, that it was not cost effective. She
believed that standardization would save the state money.
She noted that there were 4 new schools in rural Alaska
that would benefit from standardization in the way of cost
savings to the state.
Mr. Mearig stated that the department did encourage
standardization, and districts were making efforts to
optimize the operation and maintenance on facilities.
Co-Chair MacKinnon relayed that she served on a committee
and appreciated public participation. She had offered a
bill that stopped architects from being able to bid on
construction of state buildings put forth in contests. She
felt that standardization of the building design would lead
to more cost-effective construction and maintenance.
CSHB 212(RLS) was HEARD and HELD in committee for further
consideration.
Co-Chair MacKinnon announced a recess and discussed
housekeeping.
10:33:23 AM
RECESSED
11:06:07 AM
RECONVENED
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 216(FIN) am
"An Act relating to restitution; relating to the
office of victims' rights; relating to transfers from
the dividend fund; creating the restorative justice
account; relating to appropriations from the
restorative justice account for services for and
payments to crime victims, operating costs of the
Violent Crimes Compensation Board, operation of
domestic violence and sexual assault programs, mental
health services and substance abuse treatment for
offenders, and incarceration costs; relating to
contributions from dividends; relating to delinquent
minors; and providing for an effective date."
11:06:24 AM
Co-Chair MacKinnon brought the bill before the committee.
She stated that the committee had two questions pertaining
to the fiscal notes.
Co-Chair MacKinnon drew attention to FN12.
TAYLOR WINSTON, OFFICE OF VICTIMS' RIGHTS (OVR), ALASKA
LEGISLATURE (via teleconference), discussed FN12. She
explained that in order to provide restitution assistance
through the Restorative Justice account to victims the
administrative code and statute would need to be updated.
She said that the fiscal note focused primarily on a one-
time cost for a one-year, non-permanent position to
complete the work on the restitution case management
system. She added that additional costs for electronic case
management.
Co-Chair MacKinnon asked whether the fiscal note needed
amending to reflect additional capital cost to support the
software system.
Ms. Winston understood that the fiscal note reflected the
cost of $83,000 for staffing, approximately $5,000 for
computer related costs, and $1000 for the printing of
information to be distributed to various entities for
informational purposes.
11:09:54 AM
Co-Chair MacKinnon summarized the fiscal note and asked
whether the note would need to be updated to reflect the
statute change.
Ms. Winston affirmed that statutory change would be needed
to reflect language that authorized the office to help
victims with the restorative justice account.
Representative Kopp had not heard of a need for additional
statutory change. He disagreed with Ms. Winston and
announced that OVR had broad authority in statute to assist
victims with representation in court and in the return of
property hearings. He stated that the Department of
Administration, and not OVR, would not be writing the
checks. He asserted that OVR would set priority order of
victims presenting who were due restitution. He did not
believe that it was necessary to amend the bill.
11:12:24 AM
Ms. Winston agreed that OVR had broad jurisdiction with
assisting victims with regard to restitution, generally.
She believed that the office could accomplish the work
without changing statute but adding the jurisdictional
duties of the office to statute would be cleaner.
11:13:33 AM
AT EASE
11:14:24 AM
RECONVENED
Co-Chair MacKinnon explained that the committee had
Representative Kopp referenced page 3, Section 4 of the
bill:
(c) The office of victims' rights shall adopt
regulations under AS 44.62 (Administrative Procedure
Act) to establish a process for payments of
restitution balances from the restorative justice
account established in AS 43.23.048.
Representative Kopp understood that the language in the
section was enough to enable the office to carry out the
duties prescribed in the bill.
Co-Chair MacKinnon requested clarification that the office
would not be issuing payments.
Representative Kopp stated that the language on Line 14
dealt with OVR making eligibility decision on a priority
order.
Co-Chair MacKinnon referenced FN11.
11:17:09 AM
APRIL WILKERSON, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF CORRECTIONS (via teleconference), stated that
there would be no regualtion changes needed for the
department. She said that the fiscal note adequately
represented the anticipated fiscal impact of the
legislation. She thought the fiscal note was adequately
representative.
Co-Chair MacKinnon MOVED to AMEND FN 11. There being NO
OBJECTION, it was so ordered.
Co-Chair MacKinnon MOVED TO AMEND FN 12. There being NO
OBJECTION, it was so ordered.
Representative Kopp said that the bill would reprioritize
the vehicle established by the legislature in 1988 as the
Crime Victims Compensation Fund. He lamented that it had
become largely the Inmate Healthcare Fund, and that a large
portion would still be given to inmate healthcare, but by
setting a priority order, victims were sent the message
that they are considered first and foremost. He relayed
that reestablishing priority order gave clear direction to
the administration what the legislature considered to be
the highest purpose of the fund.
11:19:43 AM
Senator Micciche understood that the maximum amount a crime
victim could receive for restorative justice was $10,000.
Representative Kopp agreed.
11:19:58 AM
Senator Olson asked how to ensure that the fund would not
be spent on something other than victim's rights in the
future.
Representative Kopp responded that the legislature should
be vigilant and monitor the fund to be sure it was working
as intended.
Vice-Chair Bishop MOVED to report CSSSHB 216(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSSSHB 216(FIN) was REPORTED out of committee with a "do
pass" recommendation and with a new fiscal impact note from
the Department of Corrections; and a new fiscal impact note
from the Legislature; and with seven previously published
fiscal notes, three zero notes: FN2(DHS), FN3(DHS),
FN8(LAW); three with fiscal impact: FN7(REV), FN9(ADM),
FN10(ADM/FUND CAP); and one indeterminate note: FN 13(AJS).
11:21:15 AM
AT EASE
11:23:09 AM
RECONVENED
Co-Chair MacKinnon discussed the agenda for the following
day. She informed that the committee would consider HB 267
in addition to the published agenda.
ADJOURNMENT
11:23:47 AM
The meeting was adjourned at 11:23 a.m.