HOUSE CONCURRENT RESOLUTION NO. 13 Certifying that the State of Alaska requests and will use any funds provided to the state, a state agency, a municipality, or a political subdivision of the state under the American Recovery and Reinvestment Act of 2009. 8:41:07 AM LARRY PERSILY, STAFF, CO-CHAIR MIKE HAWKER, explained that HCR 13 is an option available to individual states under section 1607 of the American Recovery and Reinvestment Act (economic stimulus program). Governors have 45 days from the date the Act was enacted or until April 3, 2009 to certify that their state will participate in the economic stimulus program and will use these funds to create jobs and promote economic growth. The legislature can decide by concurrent resolution to participate in the program if its governor declines to participate. The concurrent resolution would be sent to the United States Office of Management and Budget. There is no specific deadline for legislative action. However, the receipt of a legislative resolution (in lieu of action by the governor) would have to be timely in order to meet application deadlines for appropriation of specific funds. A resolution is not a pledge, promise, commitment or contract to accept funds, participate in any specific programs, or to adhere to any of the requirements. A resolution is merely the first step in a process that notifies the federal government that the state wants to participate in federal economic stimulus programs. The state reserves judgment as to participation in each program; a resolution is non-binding and does not commit the state. Mr. Persily compared HCR 13 to a reservation at a restaurant, which only provides a place at the table. 8:43:43 AM Co-Chair Hawker asked if the resolution is binding on the executive branch. Mr. Persily pointed to a legal opinion by the Congressional Research Service, which indicated that there is nothing in the stimulus bill that overrules state law or is intended to interfere with the relation between the executive and legislative branches or administration of state governments. The Congressional Research Service report concluded that there is nothing to prohibit the governor from vetoing a legislative appropriation. The executive and legislative branches will have to work out state participation in each program. Co-Chair Hawker concluded that nothing trumps the constitutional authority established in either the executive or legislative branches of state government. Mr. Persily affirmed and noted that section 1607 was included to allow legislative action in the event that a state governor did not act. HCR 13 was HEARD and HELD in Committee for further consideration. 8:47:06 AM HOUSE CONCURRENT RESOLUTION NO. 13 Certifying that the State of Alaska requests and will use any funds provided to the state, a state agency, a municipality, or a political subdivision of the state under the American Recovery and Reinvestment Act of 2009. Co-Chair Hawker returned to HCR 13. The resolution would allow the legislature to certify that the funds would be used. He read from the bill. The resolution is a backstop resolution intended to be sympathetic to the governor's bill. After April 3, 2009 a legislative effort would be necessary. He reiterated that the legislation does not obligate the legislature to accept funds. The legislature cannot mandate that the executive branch spend the funds. The legislature can only appropriate funds. He termed it "keeping our options open". 10:15:59 AM Co-Chair Stoltze MOVED to ADOPT HCR 13 with individual recommendations and the accompanying fiscal note. Co-Chair Hawker OBJECTED. 10:16:31 AM At-Ease: 10:17:40 AM Reconvened: Co-Chair Hawker reviewed the question before the committee. Representative Kelly commented that the resolution is necessary to continue the discussion. Representative Austerman echoed Representative Kelly's remarks. He noted concerns, but the resolution places the legislature in the role of discussing ARRA without committing the state. 10:19:44 AM Representative Joule asked when the public will have an opportunity for public hearings. He labeled the public process as an important piece. Co-Chair Hawker agreed that a full public dialogue must occur. He noted that other policy issues compete with the economic issues. 10:21:01 AM Vice-Chair Thomas stated that he was available for the discussion. He was cautious about displacing federal funds and obligating the state's general funds. Co-Chair Hawker exemplified a paradox of the federal stimulus program. The program was allegedly founded on strengthening the states, but it has weakened states in some cases. He suggested that a careful look was warranted. 10:24:10 AM Representative Fairclough reported on an email regarding funds that the governor denied. She wondered if intent language was necessary to ensure public understanding that the administration has made applications during the policy discussions. She stated that she was pleased to receive the email as the April 3, 2009 deadline would not confine the process. 10:25:22 AM Co-Chair Hawker pointed out that state agencies have been directed to fully facilitate receipt funds available without making decisions to accept funds. Co-Chair Hawker WITHDREW his objection. HCR 13 was REPORTED out of Committee with a "do pass" recommendation and with a new zero fiscal note by the Legislature.