Legislature(2023 - 2024)SENATE FINANCE 532

02/21/2023 05:30 PM Senate LEGISLATIVE COUNCIL

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Audio Topic
05:32:40 PM Start
05:58:09 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
I. Call to Order
II. Committee Organization
a. Election of the Chair
b. Election of the Vice Chair
III. Committee Policies
a. Quorum and Voting Requirements
b. Alternate Members
c. Sanctioning Charity Events
d. Subcommittees
IV. Approval of Minutes
a. December 19, 2022
V. Ratification of Charity Events
a. Governor’s Inaugural Celebration JUNEAU –
January 20, 2023
b. Governor’s Inaugural Celebration FAIRBANKS –
January 28, 2023
c. Governor’s Inaugural Celebration ANCHORAGE –
February 18, 2023
<Above Item V (a)(b)(c) Removed from Agenda>
VI. Committee Business
a. 2023 Manual of Legislative Drafting
b. Office of Victims' Rights Compensation
c. 2023 Revisor's Bill
d. FY22 Legislature Audit
e. FY24 Legislative Council Budget
VII. Adjourn
**Streamed live on AKL.tv**
                   ALASKA STATE LEGISLATURE                                                                                   
                     LEGISLATIVE COUNCIL                                                                                      
                                                                                                                              
                      FEBRUARY 21, 2023                                                                                       
                           5:30 PM                                                                                            
                                                                                                                              
   MEMBERS PRESENT                                                                                                            
   Senator Elvi Gray-Jackson, Chair                                                                                           
   Representative Kevin McCabe, Vice Chair                                                                                    
   Senator Click Bishop                                                                                                       
   Senator Matt Claman                                                                                                        
   Senator Jesse Kiehl                                                                                                        
   Senator Donny Olson                                                                                                        
   Senator Gary Stevens                                                                                                       
   Representative Bryce Edgmon                                                                                                
   Representative Sara Hannan                                                                                                 
   Representative Craig Johnson                                                                                               
   Representative Dan Saddler                                                                                                 
   Representative Cathy Tilton                                                                                                
                                                                                                                              
   MEMBERS ABSENT                                                                                                             
   Senator Lyman Hoffman                                                                                                      
   Senator Bert Stedman (alternate)                                                                                           
   Representative George Rauscher                                                                                             
                                                                                                                              
   OTHER MEMBERS PRESENT                                                                                                      
                                                                                                                              
   AGENDA                                                                                                                     
   COMMITTEE ORGANIZATION                                                                                                     
   COMMITTEE POLICIES                                                                                                         
   APPROVAL OF MINUTES                                                                                                        
   COMMITTEE BUSINESS                                                                                                         
                                                                                                                              
   SPEAKER REGISTER                                                                                                           
   Jessica Geary, Executive Director, Legislative Affairs                                                                     
   Agency (LAA)                                                                                                               
   Emily Nauman, Director, Legal Services, LAA                                                                                
   Kathryn Kurtz, Assistant Revisor of Statutes, Legal                                                                        
   Services, LAA                                                                                                              
   Mindy Kissner, Finance Manager, LAA                                                                                        
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              
I. CALL TO ORDER                                                                                                            
                                                                                                                              
5:32:40 PM                                                                                                                  
SENATE  PRESIDENT   STEVENS  called  the   Legislative  Council                                                               
meeting  to  order  at  5:32  PM. Present  at  the  call  were:                                                               
Senators Bishop,  Claman, Gray-Jackson, Kiehl,  Olson, Stevens;                                                               
Representatives  Edgmon,  Hannan,   Johnson,  McCabe,  Saddler,                                                               
Tilton.                                                                                                                       
                                                                                                                              
Twelve members present.                                                                                                       
                                                                                                                              
II. COMMITTEE ORGANIZATION                                                                                                  
                                                                                                                              
5:33:45 PM                                                                                                                  
SENATE  PRESIDENT STEVENS  nominated and  elected Senator  Elvi                                                               
Gray-Jackson  as the  Chair of  Legislative  Council and  asked                                                               
unanimous consent and that nominations be closed.                                                                             
                                                                                                                              
Without objection,  Senator Gray-Jackson  was elected  Chair of                                                               
Legislative Council.                                                                                                          
                                                                                                                              
5:34:38 PM                                                                                                                  
SPEAKER  TILTON  nominated  and  elected  Representative  Kevin                                                               
McCabe  as the  Vice-Chair  of  Legislative Council  and  asked                                                               
unanimous consent and that nominations be closed.                                                                             
                                                                                                                              
Without  objection,  Representative  McCabe was  elected  Vice-                                                               
Chair of Legislative Council.                                                                                                 
                                                                                                                              
III. COMMITTEE POLICIES                                                                                                     
                                                                                                                              
A. Quorum and Voting Requirements                                                                                           
                                                                                                                              
CHAIR GRAY-JACKSON  said it  is a  long-time Council  policy to                                                               
require  a minimum  of eight  members for  a quorum, and  eight                                                               
members  to approve  a  motion.  With a  fourteen-member  joint                                                               
committee,  this policy  ensures  at least  one  member of  the                                                               
other  body approves  a  motion  or satisfies  a  quorum to  do                                                               
Councils   business. Unless  there is  an objection,  she would                                                               
like to maintain this tradition.                                                                                              
                                                                                                                              
The policy was maintained without objection.                                                                                  
                                                                                                                              
B. Alternate Members                                                                                                        
                                                                                                                              
CHAIR GRAY-JACKSON stated in  2011 Council adopted the practice                                                               
of appointing  alternate members,  similar to  other committees                                                               
such  as Legislative  Budget and  Audit and  Ethics. For  2023-                                                               
2024,  the alternate  member  for the  Senate  is Senator  Bert                                                               
Stedman and there is no alternate member in the House.                                                                        
                                                                                                                              
CHAIR GRAY-JACKSON  continued that she would  like to establish                                                               
the policy  that alternate  members are welcome  to sit  at the                                                               
table at any Legislative Council  meeting. Regarding voting, an                                                               
alternate may only vote in the  absence of an appointed Council                                                               
member of  their respective  body. In  other words,  the Senate                                                               
alternate may  only vote if a  Senate member is not  present; a                                                               
Senate alternate  may not vote  if there  is an absence  in the                                                               
House membership of the Council.                                                                                              
                                                                                                                              
The policy was approved without objection.                                                                                    
                                                                                                                              
CHAIR  GRAY-JACKSON  thanked  her  staff,  Legislative  Affairs                                                               
Agency staff, and the members  of Council. She pledged to treat                                                               
everyone, from  committee members to staff  and presenters with                                                               
respect, and  anticipated that all  members would do  the same.                                                               
She pledged to provide plenty  of notice for upcoming meetings;                                                               
materials as early  as possible; and to do her  best to discuss                                                               
agenda items with  each member prior to the  meeting. She asked                                                               
members who may have questions  or concerns about any materials                                                               
to ask  in advance of  the meeting, so  staff have a  chance to                                                               
prepare  a response  or  additional  information. She  reminded                                                               
members  that LAA  staff  serve the  committee  and asked  that                                                               
members  be courteous  and respectful  in  their questions  and                                                               
comments when  staff present data.  The Chair closed  by saying                                                               
that  she looks  forward  to working  with  Vice Chair  McCabe,                                                               
getting to know  her colleagues in the House,  and working with                                                               
each member on this very important committee.                                                                                 
                                                                                                                              
C. Sanctioning Charitable Events                                                                                            
                                                                                                                              
CHAIR  GRAY-JACKSON   stated   as  per  AS   24.60.080(a)(2)(B)                                                               
Legislative  Council  sanctions  charitable  events  that  have                                                               
501(c)(3) tax  exempt status.  The policy  in place  since 2003                                                               
grants  the Chair  the  ability  to sanction  these  charitable                                                               
events and  the Committee  would ratify  the Chairs   action at                                                               
the next Council meeting.                                                                                                     
                                                                                                                              
The policy was maintained without objection.                                                                                  
                                                                                                                              
D. Subcommittees                                                                                                            
                                                                                                                              
CHAIR GRAY-JACKSON stated  she would like to  continue the work                                                               
of the  subcommittees on Information Technology,  Security, and                                                               
Assembly  Building issues.  If members,  or staff  representing                                                               
them,  would  like to  serve  on  any of  these  subcommittees,                                                               
please  contact her  office. There  was no  discussion of  this                                                               
item.                                                                                                                         
                                                                                                                              
JESSICA  GEARY  thanked  the   Chair  for  the  opportunity  to                                                               
introduce  her hard-working,  non-partisan management  team who                                                               
support the important  work of the Legislature.  She stated the                                                               
many and various  functions LAA provides then  introduced LAAs                                                                
leaders:  Megan  Wallace, Chief  Counsel  and  Parliamentarian;                                                               
Mike  Warenda,  Anchorage  Operations  Manager;  Rayme  Vinson,                                                               
Chief  of Security;  Tim Banaszak,  Chief Information  Officer;                                                               
Tim  Powers, Manager  of Information  and Teleconferencing  and                                                               
LIOs; JC Kestel, Procurement  Officer and Supply Manager; Mindy                                                               
Kissner,  Finance   Manager;  John   Wright,  Print   Shop  and                                                               
Documents  Manager;  Serge  Lesh,   Facilities  Manager;  Skiff                                                               
Lobaugh,  Human  Resources  Manager;  Chuck  Burnham,  Research                                                               
Manager;  Emily Nauman,  Legal Services  Director; Sant   Lesh,                                                               
Deputy Executive Director; and  Molly Kiesel, Special Assistant                                                               
and Recording Secretary  for Council. Together this  team has a                                                               
combined  total  of  200  years   of  legislative  service  and                                                               
institutional  knowledge. She said  she is  proud to  lead this                                                               
effective group of professionals  and appreciated the privilege                                                               
of recognizing them here today.                                                                                               
                                                                                                                              
IV. APPROVAL OF MINUTES                                                                                                     
                                                                                                                              
5:42:34 PM                                                                                                                  
VICE-CHAIR MCCABE  moved that  Legislative Council  approve the                                                               
minutes of the December 19, 2022, meeting as presented.                                                                       
                                                                                                                              
The minutes were approved without objection.                                                                                  
                                                                                                                              
V. COMMITTEE BUSINESS                                                                                                       
                                                                                                                              
A. 2023 Manual of Legislative Drafting                                                                                      
                                                                                                                              
5:43:39 PM                                                                                                                  
VICE-CHAIR MCCABE  moved that  Legislative Council  approve the                                                               
2023 Legislative Drafting Manual.                                                                                             
                                                                                                                              
CHAIR GRAY-JACKSON  objected for the purpose  of discussion and                                                               
requested  Emily Nauman,  Legal Services  Director, and  Hilary                                                               
Martin, Revisor of Statutes, to speak to this item.                                                                           
                                                                                                                              
EMILY  NAUMAN,  Director  of  Legal Services  (LAA),  said  the                                                               
Manual of Legislative  Drafting is adopted each  legislature as                                                               
required under Uniform  Rule 10, which states in  part that the                                                               
Manual   be  followed by  all  officers  and employees  of  the                                                               
legislature in preparation, processing,  and disposition of all                                                               
legislative documents  and records.  Essentially,  the Drafting                                                               
Manual operates as  the rules for the  Legal Services division.                                                               
Most 2023  updates are  simple and  update references  from the                                                               
32nd Legislature  to the  33rd Legislature.  The few  technical                                                               
and substantive changes were outlined  in the January 19, 2023,                                                               
memo provided to Council.                                                                                                     
                                                                                                                              
There was  no discussion  of this  item and Chair  Gray-Jackson                                                               
removed her objection.                                                                                                        
                                                                                                                              
5:45:24 PM                                                                                                                  
A roll call vote was taken.                                                                                                   
                                                                                                                              
YEAS:   Senators  Bishop, Claman,  Gray-Jackson, Kiehl,  Olson,                                                               
        Stevens; Representatives Edgmon, Hannan, Johnson,                                                                     
        McCabe, Saddler, Tilton                                                                                               
                                                                                                                              
NAYS:  None                                                                                                                   
                                                                                                                              
The motion passed 12-0.                                                                                                       
                                                                                                                              
B. Office of Victims Rights Compensation                                                                                    
                                                                                                                              
5:46:06 PM                                                                                                                  
VICE-CHAIR MCCABE  moved that Legislative Council  approve bill                                                               
version 33-LS0441\A  and request the Senate Rules  Committee to                                                               
introduce it.                                                                                                                 
                                                                                                                              
CHAIR GRAY-JACKSON  objected for the purpose  of discussion and                                                               
asked Ms. Geary to speak to this item.                                                                                        
                                                                                                                              
MS.  GEARY  said as  was  discussed  at  the August  18,  2022,                                                               
Legislative  Council  meeting,  the  four  Office  of  Victims                                                                
Rights  (OVR) attorneys  were  inadvertently  omitted from  the                                                               
attorney pay  raise bill, HB  226. The budgetary  component has                                                               
been corrected; however, legislation  must be approved to amend                                                               
the  statute to  add  OVRs  attorneys  to  the attorney  salary                                                               
schedule.                                                                                                                     
                                                                                                                              
There was  no discussion  of this  item and Chair  Gray-Jackson                                                               
removed her objection.                                                                                                        
                                                                                                                              
5:47:19 PM                                                                                                                  
A roll call vote was taken.                                                                                                   
                                                                                                                              
YEAS:   Senators  Bishop, Claman,  Gray-Jackson, Kiehl,  Olson,                                                               
        Stevens; Representatives Edgmon, Hannan, Johnson,                                                                     
        McCabe, Saddler, Tilton                                                                                               
                                                                                                                              
NAYS: None                                                                                                                    
                                                                                                                              
The motion passed 12-0.                                                                                                       
                                                                                                                              
C. 2023 Revisors Bill                                                                                                       
                                                                                                                              
5:48:04 PM                                                                                                                  
VICE-CHAIR MCCABE  moved that  Legislative Council  approve the                                                               
2023 Revisors  Bill version 33-LS0303\B  and request the Senate                                                               
Rules Committee to introduce it.                                                                                              
                                                                                                                              
CHAIR GRAY-JACKSON  objected for the purpose  of discussion and                                                               
asked Kathryn  Kurtz, Assistant Revisor of  Statutes, and Emily                                                               
Nauman, Legal Services Director, to speak to this item.                                                                       
                                                                                                                              
KATHRYN KURTZ, Assistant Revisor  of Statutes, said the purpose                                                               
of the  Revisors  Bill which  is anticipated in statute,  is to                                                               
improve the  statutes by  correcting or removing  deficiencies,                                                               
conflicts, and obsolete provisions.  Legal Services reviews the                                                               
statutes  on a  regular  basis  for that  type  of problem  and                                                               
receives feedback  from users, including the  Department of Law                                                               
when they notice  issues; the Revisors  Bill  isnt  intended to                                                               
fix every  issue. The bill  is deliberately policy  neutral and                                                               
intended to simply clean up  existing statutes. At the Agencys                                                                
request, the Department  of Law reviewed the  draft bill, found                                                               
no  legal issues  and support  the proposed  amendments in  the                                                               
bill.  She said  the  changes are  explained  in the  Sectional                                                               
Summary.                                                                                                                      
                                                                                                                              
There was  no discussion  of this  item and Chair  Gray-Jackson                                                               
removed her objection.                                                                                                        
                                                                                                                              
5:49:53 PM                                                                                                                  
A roll call vote was taken.                                                                                                   
                                                                                                                              
YEAS:   Senators  Bishop, Claman,  Gray-Jackson, Kiehl,  Olson,                                                               
        Stevens; Representatives Edgmon, Hannan, Johnson,                                                                     
        McCabe Saddler, Tilton                                                                                                
                                                                                                                              
NAYS: None                                                                                                                    
                                                                                                                              
The motion passed 12-0.                                                                                                       
                                                                                                                              
D. FY22 Legislature Audit                                                                                                   
                                                                                                                              
CHAIR  GRAY-JACKSON noted  for  members that  this  was not  an                                                               
action item and asked Mindy  Kissner, Finance Manager, to speak                                                               
to this item.                                                                                                                 
                                                                                                                              
MINDY  KISSNER, Finance  Manager with  the Legislative  Affairs                                                               
Agency,  stated   that  before  members  was   the  FY22  Audit                                                               
conducted by  external auditors  Elgee Rehfeld. By  statute the                                                               
legislature  undergoes an  independent  audit  of its  internal                                                               
controls  and financial  statements.  The outcome  of the  FY22                                                               
Audit was a clean audit with no exceptions.                                                                                   
                                                                                                                              
There was no discussion of this item.                                                                                         
                                                                                                                              
E. FY24 Legislative Council Budget                                                                                          
                                                                                                                              
5:51:40 PM                                                                                                                  
VICE-CHAIR  MCCABE moved  that the Legislative  Council  per AS                                                               
24.20.130 approve the FY24  Legislative Council Proposed Budget                                                               
and transmit it to the House  and Senate Finance Committees for                                                               
their review and action.                                                                                                      
                                                                                                                              
CHAIR  GRAY-JACKSON objected  for  the  purpose of  discussion.                                                               
After  the   discussion,  if   the  motion  is   approved,  the                                                               
Legislative Council  budget will be advanced  to the respective                                                               
legislative  budget subcommittees.  Representatives Tilton  and                                                               
Johnson serve on the House  subcommittee, and Senators Hoffman,                                                               
Olson, and Stevens serve on  the Senate subcommittee. The House                                                               
Finance   Subcommittee    is   scheduled   to    consider   the                                                               
Legislatures  budget on February 24,  2023. She asked Ms. Geary                                                               
to speak to this item.                                                                                                        
                                                                                                                              
EXECUTIVE  DIRECTOR GEARY  said  the FY24  proposed budget  and                                                               
sectional  narrative,  which  details  each  appropriation  and                                                               
allocation  in the budget.  In preparing  this budget  request,                                                               
she  met  with  Presiding Officers,  Rules  Chairs,  House  and                                                               
Senate  Finance Co-Chair  staff,  and  the Legislative  Council                                                               
Chair.  This  committee  is  responsible  for  authorizing  the                                                               
transmittal of  this budget request  to the  Finance Committees                                                               
for action. By voting yes, members  agree to pass the budget to                                                               
Finance for any additional work or changes they may make.                                                                     
                                                                                                                              
She said  rather than going  page by page, she  would highlight                                                               
the significant  items in this  request and  encouraged members                                                               
to  ask  questions   at  any  time  during   her  presentation.                                                               
Generally,  overtime hours  worked by  non-partisan staff  were                                                               
still  fairly  high  but  moving in  the  right  direction  and                                                               
recruitment  and  retention   remain  challenging,  mainly  for                                                               
seasonal  and lower range  positions.  For calendar  year 2022,                                                               
which  had no  special sessions,  LAA staff  worked a  combined                                                               
total of more than 8,000 hours of overtime.                                                                                   
                                                                                                                              
Ms. Geary paused  in her testimony to clarify  for members that                                                               
staff are  not eligible for overtime  pay and she is  using the                                                               
term   overtime  to  refer to  hours worked  over the  salaried                                                               
time  of 37.5  hours per  week;  this work  is recognized  with                                                               
hour-for-hour compensatory  time, which has no  cash value. She                                                               
continued that the  overtime worked in 2022  was the equivalent                                                               
of  just  over  four  full-time  positions.  Several  employees                                                               
exceeded the  annual limit  of 150  hours of  compensatory time                                                               
before the  end of the year,  meaning the extra  hours required                                                               
to  complete their  work were  essentially donated.  This is  a                                                               
reduction  of  about  20%  from 2021  which  had  four  special                                                               
sessions.                                                                                                                     
                                                                                                                              
The  administrative  services   portion  of  the  legislatures                                                                
budget had  significant cuts in  FY16 and has been  flat funded                                                               
since.  Efficiency   and  attrition  have   supported  workload                                                               
increases and  existing services  without impacting  the budget                                                               
despite the current rate of  inflation. This allocation now has                                                               
an  eight  percent  vacancy  rate   in  personal  services  and                                                               
maintaining  current operations  will  require more  resources.                                                               
Specifically, two  additional full-time positions  are included                                                               
in this  budget request:  a contracting  officer in  the supply                                                               
section   and  an   information   assistant   for  the   Mat-Su                                                               
legislative  information  office  for   a  total  increment  of                                                               
$200,000; as  well as  an increment of  $450,000 to  reduce the                                                               
vacancy rate to a more sustainable three percent.                                                                             
                                                                                                                              
As was  discussed in the previous  agenda item, as  a companion                                                               
to  the required  legislation,  the Office  of Victims   Rights                                                               
allocation includes  an increment  of $107,000 to  fund placing                                                               
the OVR attorneys permanently on the attorney salary schedule.                                                                
                                                                                                                              
Ms.  Geary continued  with  the  Legislative Security  Services                                                               
allocation,   saying  that  Legislative   Council   approved  a                                                               
contract  for security  services at  the Anchorage  Legislative                                                               
Office Building and an increment  of $100,000 to fund it, which                                                               
is in  this request. In  the Session Expenses  allocation there                                                               
is an  increment of $117,000 to  fund an increase in  the staff                                                               
lodging stipend  as approved by Legislative  Council in January                                                               
and  requested  receipt  authority  of  $35,000  for  royalties                                                               
received from Lexis Nexis for publication of Alaska Statutes.                                                                 
                                                                                                                              
Finally, the  Session Expenses allocation has  been chronically                                                               
underfunded  the past  several  budget cycles  and  has had  to                                                               
borrow  from  the  interim  budget,   otherwise  known  as  the                                                               
Legislative Operating Budget. To  ensure a fully funded Session                                                               
Expenses allocation, including enough  funding for a thirty-day                                                               
special session,  an increment  or permanent transfer  from the                                                               
interim budget in the amount of $581,000 is recommended.                                                                      
                                                                                                                              
There was no discussion of this item and Chair Gray-Jackson                                                                   
removed her objection.                                                                                                        
                                                                                                                              
5:56:35 PM                                                                                                                  
A roll call vote was taken.                                                                                                   
                                                                                                                              
YEAS: Senators Bishop, Claman, Gray-Jackson, Kiehl, Olson,                                                                    
        Stevens; Representatives Edgmon, Hannan, Johnson,                                                                     
        McCabe Saddler, Tilton                                                                                                
                                                                                                                              
NAYS:  None                                                                                                                   
                                                                                                                              
The motion passed 12-0.                                                                                                       
                                                                                                                              
VI. ADJOURN                                                                                                                 
                                                                                                                              
SENATOR STEVENS complimented Chair Gray-Jackson on a flawless                                                                 
meeting with unanimity on every issue and said it may be the                                                                  
last time she sees that [laughter].                                                                                           
                                                                                                                              
SENATOR BISHOP said he echoed Senator Stevens's comment to new                                                                
Vice-Chair McCabe and to Chair Gray-Jackson as well.                                                                          
                                                                                                                              
With no further business before the committee, the meeting was                                                                
adjourned at 5:58 PM.                                                                                                         
                                                                                                                              
5:58:09 PM