HOUSE BILL NO. 79 "An Act making supplemental appropriations, reappropriations, and other appropriations; amending appropriations; and providing for an effective date." 3:04:30 PM 3:04:54 PM AT EASE 3:05:23 PM RECONVENED Co-Chair Foster MOVED to ADOPT proposed committee substitute for HB 79, Work Draft 33-GH1063\B (Marx, 3/16/23). Representative Stapp OBJECTED for discussion. Co-Chair Johnson asked her staff to review the changes in the CS. REMOND HENDERSON, STAFF, REPRESENTATIVE DELENA JOHNSON, relayed that the only changes in the CS were conforming changes made by Legislative Legal Services and the Legislative Finance Division. 3:06:52 PM Co-Chair Foster asked for a brief review of the three items related to SNAP [Supplemental Nutrition Assistance Program], OPA [Office of Public Advocacy], and the Public Defender Agency (PD) in the fast track supplemental. Mr. Henderson replied that Section 4 of the bill included the appropriations. The bill appropriated $2,285,200 from the general fund to the Department of Administration (DOA) for legal and advocacy services under OPA for the cost of implementing Chapter 44 SLA 2022 for the fiscal year June 30, 2023. He believed the language was in reference to HB 325 passed in 2022, which required the agencies to obtain additional attorneys to address the items required as a result of the legislation. He recalled that HB 5 had been merged into HB 325 and the fiscal note had been zeroed out. The increment in the fast track supplemental reflected what DOA anticipated to be the cost of administering the passage of HB 325. Sections B, C, and D were primarily appropriations to the services line item in the various allocations. He stated his understanding that most of the work would likely be contracted out to address the current backlogs. Co-Chair Foster pointed out that the bill was also meant to address the substantial issue facing the SNAP food stamp program in Alaska. Mr. Henderson agreed. He noted that the SNAP funding was contained in Section 1 of the bill. 3:10:16 PM AT EASE 3:11:06 PM RECONVENED Co-Chair Johnson OPENED public testimony. 3:11:50 PM HERMAN MORGAN, SELF, ANIAK (via teleconference), testified that he had heard many residents on the radio reporting they had not been able to get their food stamps for many months because food stamp offices were closed. He stated the governor was going to fix schools and was telling parents to take legal action against their school boards because of inappropriate things taught without parents' permission. He felt parents' rights were being violated due to a lack of a proper consent form. He thought the legislature needed to reign in health and social services because there were side effects of an injection. Some villages wanted to take the state to court because they were getting $2 billion in federal funds. He stated there were bad things going on that were hurting the Native population. He spoke about the importance of the Permanent Fund Dividend in rural Alaska. He continued his testimony. He was glad to answer any questions. He thought the legislature needed to listen to the governor and the people of Alaska. 3:16:30 PM Co-Chair Johnson CLOSED public testimony. 3:16:55 PM Representative Stapp MAINTAINED the OBJECTION to the adoption of the CS for a question. He requested to ask a question of Mr. Steininger. Co-Chair Johnson noted individuals in the room for questions. Representative Stapp asked about the reappropriation from the Medicaid budget to the Division of Public Assistance for the purpose of Medicaid redetermination. He asked Mr. Steininger to clarify that the $3,088,700 reappropriation from the unobligated, unexpended balance of the Medicaid Services budget was currently available. NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, clarified that the most recent projections from the Department of Health showed an unobligated balance of approximately $10 million. Representative Stapp WITHDREW the OBJECTION. Representative Josephson asked for clarification that Representative Stapp's objection had been to the adoption of the work draft. Co-Chair Johnson replied affirmatively. There being NO further OBJECTION, Work Draft 33-GH1063\B was ADOPTED. Co-Chair Johnson moved to the amendment process. 3:19:50 PM Representative Josephson MOVED to ADOPT Amendment 1 (copy on file): DEPARTMENT: Law APPROPRIATION: Criminal Division ALLOCATION: Criminal Justice Litigation ADD: $1 ,249.8 general funds 1004 POSITIONS: 10 PFT Positions EXPLANATION: Add five Assistant Attorney General IV positions, two Victim Witness Paralegal II positions, three Law Office Assistant II positions, and funding for associated Travel, Services, and Commodities costs. This distribution should match the SLA 2022 fiscal note to HB 5 pertaining to sexual assault and the definition of consent. The Fiscal Note was provided to the House Judiciary Committee with the identifier HB005CSSS(JUD)-LAW-CRIM-CJL-05-05-22 but was ultimately not funded in FY23. Representative Stapp OBJECTED. Representative Josephson explained the amendment. He stated that with great fanfare and close to a unanimous vote, HB 325 was adopted in May [2022]. He detailed that the bill had been sponsored by former Representative Sarah Rasmussen and had added the crime of harassment to domestic violence crimes. He explained that HB 5 had been inserted into HB 325, which involved the way the state prosecutes and thinks about sexual assault. He elaborated that under prior law an assault victim had to show some evidence that they tried to use force to defend from the assailant. Under the new law that was no longer necessary. He stated the update was a very important modernization and former Representative Geran Tarr deserved much credit. 3:21:36 PM AT EASE 3:21:48 PM RECONVENED Representative Josephson continued to review Amendment 1. He explained that the law was designed to result in more convictions through more pleas or trials. He elaborated that under the new law if an assault victim responded by freezing - a common, defensible, and understandable reaction out of a state of shock and fear - the prosecutor could move forward with the case. He relayed that at the close of business in May [2022] no fiscal notes were adopted to fund the bill. He emphasized that the point of the bill was to result in more crime charged. He detailed that prosecutors had requested $1.7 million starting July 1 [2022] and the fiscal note had included two high level assistant attorney generals, three lower level assistant attorney generals, two victim witness paralegals, and three law office assistants. He underscored the issue was about enforcing the law. Representative Josephson continued that defense counsel also explained that their workload would increase as a result of defending more clients. The public defenders did not receive their requested funding either. He relayed that HB 79 included a request for OPA and PD to address their backlog. Additionally, OPA and PD had specified their need for funding to defend the new crimes. He encouraged committee members to support the funding. He underscored that prosecutors did not have any resources to prosecute new crime. He remarked that [the Department of Law] had reported having great success (particularly around December and January) at hiring new prosecutors under a bill he had sponsored, which gave substantial pay increases for lawyers. Representative Josephson explained that the numbers in Amendment 1 had been calculated not randomly, but sort of scientifically. He detailed that OPA's fast track amount included in HB 79 was 88.5 percent of the agency's original request. The PD's amount was 58 percent of its original request. The average of the two was 73 percent of the requests. The amendment included 73 percent of the district attorney's original request. The amendment was 100 percent consistent with the fast track issues. He emphasized the money was needed to defend the cases unless someone was prosecuting the cases. He believed the amendment had great merit, which was to prosecute offenders who behave badly. He asked for members' support. 3:25:41 PM Co-Chair Foster shared that he had cosponsored HB 5 and supported it. He stated there had been a lot of talk about having another appropriation bill out there. He stated that people were very concerned that an appropriation bill could get "Christmas treed" and possibly die in the other body. He was very concerned that if HB 79 did not pass, there would be many people who were relying on SNAP who may not receive the benefit or may see a further delay in the benefit. He did not believe SNAP recipients could wait any longer. He believed the amendment could be added to the regular supplemental bill or another crime bill. He noted the governor currently had three crime bills before the legislature. He supported the items in the amendment; however, it had taken substantial work for the fast track bill to come before the committee and there was a lot of skittishness about having the appropriation bill out there. He underscored that having the legislation before the committee was a big deal and a good thing. He did not want to see SNAP recipients going without benefits for several more months; therefore, he opposed the amendment. Co-Chair Johnson associated herself with the remarks made by Co-Chair Foster. She stated there was a right time for the right amendment and she believed the current focus should be on getting SNAP benefits to those who needed them. Representative Stapp MAINTAINED the OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Galvin, Josephson, Ortiz OPPOSED: Coulombe, Cronk, Stapp, Tomaszewski, Foster, Johnson Co-Chair Edgmon and Representative Hannan were absent from the vote. The MOTION to adopt Amendment 1 FAILED (3/6). 3:29:26 PM AT EASE 3:30:05 PM RECONVENED Co-Chair Johnson MOVED to ADOPT Amendment 2, 33-GH1063\B.4 (Marx, 3/20/23)(copy on file): Page 1, line 1, following "appropriations;": Insert "making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund;" Page 5, following line 13: Insert a new bill section to read: "* Sec. 5. CONSTITUTIONAL BUDGET RESERVE FUND. (a) If, after the appropriations made in sec. 85(b), ch. 11, SLA 2022, the unrestricted state revenue available for appropriation in fiscal year 2023 is insufficient to cover the general fund appropriations that take effect in fiscal year 2023 that are made in ch. 12, SLA 2022, as passed by the Thirty-Second Alaska State Legislature in the Second Regular Session and enacted into law, and the general fund appropriations that take effect in fiscal year 2023 that are made in ch. 11, SLA 2022, as passed by the Thirty-Second Alaska State Legislature in the Second Regular Session and enacted into law, not including the appropriation made in sec. 78(u), ch. 11, SLA 2022, the amount necessary to balance revenue and general fund appropriations that take effect in fiscal year 2023 that are made in ch. 12, SLA 2022, as passed by the Thirty-Second Alaska State Legislature in the Second Regular Session and enacted into law, and the general fund appropriations that take effect in fiscal year 2023 that are made in ch. 11 , SLA 2022, as passed by the Thirty-Second Alaska State Legislature in the Second Regular Session and enacted into law, not including the appropriation made in sec. 78(u), ch. 11, SLA 2022, is appropriated to the general fund from the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska). (b) If, after the appropriation made in (a) of this section, the unrestricted state revenue available for appropriation in fiscal year 2023 is insufficient to cover the general fund appropriations that take effect in fiscal year 2023, not including the appropriation made in sec. 78(u), ch. 11, SLA 2022, the amount necessary to balance revenue and general fund appropriations that take effect in fiscal year 2023, not including the appropriation made in sec. 78(u), ch. 11, SLA 2022, and not to exceed $115,000,000, is appropriated to the general fund from the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska). (c) The appropriations made from the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska) in (a) and (b) of this section are made under art. IX, sec. 17(c), Constitution of the State of Alaska." Renumber the following bill section accordingly. Co-Chair Foster OBJECTED for discussion. Co-Chair Johnson explained the amendment was in recognition of the current market conditions and the impact on the ability to fund the FY 24 budget as well as the current supplemental requests. Although the spring forecast had yet to be released, the state was anticipating an additional deficit of close to $250 million due to low oil prices. Section (a) of the amendment appropriated a draw from the CBR to cover the deficit arising from the FY 23 revenue and all appropriations made the prior session with the exception of K-12 forward funding. Section (b) appropriated up to $115 million from the CBR for an additional FY 23 budget rising from appropriations made in the current session. The $115 million would cover the current supplementals requested by the governor. The amendment covered the fast track and regular supplemental and capped the amount at the amount brought forward. 3:32:04 PM AT EASE 3:32:40 PM RECONVENED Co-Chair Foster WITHDREW the OBJECTION. There being NO further OBJECTION, Amendment 2 was ADOPTED. 3:33:41 PM AT EASE 3:33:52 PM RECONVENED Co-Chair Foster MOVED to REPORT CSHB 79(FIN) out of Committee with individual recommendations with authority given to Legislative Legal Services and the Legislative Finance Division to make any necessary technical and or conforming changes. There being NO OBJECTION, it was so ordered. 3:34:57 PM AT EASE 3:35:04 PM RECONVENED CSHB 79(FIN) was REPORTED out of committee with six "do pass" recommendations, two "no recommendation" recommendations, and one "amend" recommendation.