HOUSE BILL NO. 53 "An Act making appropriations for the operating and loan program expenses of state government and for certain programs; capitalizing funds; amending appropriations; making supplemental appropriations; making reappropriations; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." HOUSE BILL NO. 55 "An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date." 2:42:07 PM Co-Chair Foster MOVED to ADOPT the proposed committee substitute for HB 53, Work Draft 34-GH1462\I (Marx, 3/11/25). Co-Chair Josephson OBJECTED for discussion. Co-Chair Josephson asked his staff to review the changes in the CS. 2:43:58 PM ALEXANDER SCHROEDER, STAFF, REPRESENTATIVE ANDY JOSEPHSON, reviewed the changes. He reviewed the additional spreadsheets in members' packets from the Legislative Finance Division (LFD) (copy on file). He reviewed the changes in the numbers section of the bill. 2:48:43 PM Co-Chair Foster requested a slower review. Co-Chair Josephson returned to page 2, line 5 through 8. He asked Mr. Schroeder to summarize. Mr. Schroeder summarized the change, which was an effectively weakening the legislative intent. Co-Chair Josephson stated there had been concern that $5 million, and felt that next change was related to the Department of Agriculture, and it was a placeholder. Representative Galvin stated they were leaving the Department of Agriculture as a placeholder. Co-Chair Josephson believed she was correct. Mr. Schroeder answered that the idea was if it was not included in the CS the positions would be gone, so they were included to accurately reflect the totals. Representative Hannan asked if the dollar amount had been a decrement in the budget. Co-Chair Josephson was confident it was true. 2:52:59 PM Representative Hannan requested the page numbers when reviewed. Mr. Schroeder relayed that the language section in the new CS began on page 55. Mr. Schroeder continued to outline the changes. Co-Chair Josephson remarked that there were some marked items that were "in flux." Mr. Schroeder moved to page 55, lines 10 through 15 for supplemental Department of Fish and Game which amended the prior year's fishery disaster fund. Representative Bynum noted there were two documents. One was a clean document and one was a redline draft. Co-Chair Josephson was using the clean version. Representative Johnson stated the section should be the same. Co-Chair Josephson noted Mr. Schroeder was talking about section 5. Mr. Schroeder moved to portion related to employees of the executive branch. Co-Chair Josephson believed they were like collective bargaining agreements that would be adopted and the legislature wanted to know what was going on. Representative Hannan asked if the legislature was notified in order to adjust the budget. 2:59:20 PM Co-Chair Josephson also received the notice. He asked Mr. Painter to address the committee. ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION, answered there was nothing in the current language that would require it. Representative Hannan asked if it would be helpful or would muddy the waters. Co-Chair Josephson thought Mr. Painter would say it was a policy call. Mr. Painter agreed. 3:00:42 PM Mr. Schroeder looked at page 60, Section 13, which included intent language related to full actuarial rate without relying on lapsing funding. Co-Chair Josephson noted there were perhaps 12 more of the items. 3:02:24 PM Mr. Schroeder remarked on the section related to the fix to the Power Cost Equalization (PCE) Representative Bynum asked why there was a proposed change. Mr. Schroeder deferred to Mr. Painter. Mr. Painter stated that the governor's language stated that it not exceed another amount, so it was not a valid appropriation because it gave too many guidelines. He stated that the draft included a formula. Representative Bynum surmised it was creating the 40 percent value. Mr. Painter agreed. 3:04:43 PM Mr. Schroeder remarked that the next section amended from $40,000 to $80,000 in the arts license plates. He turned to page 65, which modified to specify the calculation should be 60 percent and not to exceed $3 million. The next item was in the red line version. Co-Chair Josephson stated it pertained to abandoned cars. Mr. Schroeder agreed. 3:08:35 PM Mr. Schroeder turned to Section 27, subsection (q) which was intended to accurately reflect the portion of the restorative justice fund. Co-Chair Josephson WITHDREW the OBJECTION. There being NO further OBJECTION, Work Draft 34-GH1462\I was ADOPTED. Co-Chair Foster MOVED to ADOPT the proposed committee substitute for HB 55, Work Draft 34-GH1459\I (Marx, 3/11/25). Co-Chair Josephson OBJECTED for discussion. Co-Chair Josephson asked his staff to review the changes in the CS. Mr. Schroeder reviewed the changes to HB 55. There were no changes to the language section. He reviewed the changes to the numbers section. Co-Chair Josephson WITHDREW the OBJECTION. There being NO OBJECTION, Work Draft 34-GH1459\I was ADOPTED. HB 53 was HEARD and HELD in committee for further consideration. HB 55 was HEARD and HELD in committee for further consideration. Co-Chair Josephson handed the gavel to Co-Chair Foster. 3:14:39 PM Co-Chair Foster reviewed the remainder of the meeting agenda.