CS FOR HOUSE BILL NO. 266(FIN) "An Act making appropriations for the operating and loan program expenses of state government and for certain programs, capitalizing funds, and making reappropriations; and providing for an effective date." CS FOR HOUSE BILL NO. 267(FIN) "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." 9:18:14 AM Co-Chair Kelly discussed housekeeping. 9:18:34 AM Co-Chair Meyer MOVED to ADOPT the proposed committee substitute for HB 266, Work Draft 28-GH2671\E (Wallace 3/26/14) as a working document. Co-Chair Kelly OBJECTED for the purpose of discussion. Co-Chair Meyer MOVED to ADOPT the proposed committee substitute for HB 267, WORK DRAFT 28-GH2673\R (Wallace 3/26/14) as a working document. 9:19:31 AM Co-Chair Kelly OBJECTED for the purpose of discussion. 9:20:27 AM AT EASE 9:21:56 AM RECONVENED 9:22:05 AM Mr. Armstrong stated that the 4 page narrative in members' packets(copy on file) explained the 19 changes that had been incorporated into the new committee substitute (CS) for HB 266 and HB 267. He noted that the reports could be found on the Legislative Finance website. He reviewed the changes: Commerce, Community and Economic Development: Community and Regional Affairs Community and Regional Affairs Page 5 Lines 13-14 Increase $50,000 (UGF) -provides necessary UGF for Kawarek Inc. to provide sufficient match for the Federal Aviation Administration funding   Commerce, Community and Economic Development: Corporations, Business and Professional Licensing Page 6 Lines 4-7 Intent Language -provides direction to find efficiencies and cost savings measures while also limiting the burden of the licensing process on license holders   Commerce, Community and Economic Development Economic Development (Tourism Marketing): Page 6 Line 10 & 19 Reduce $800,000 (UGF) -reduces program by 5%   Education and Early Development: K-12 Support Foundation Program Page 10 Lines 11-20 Intent -provides policy guidance to school districts utilizing K-12 support funding Education and Early Development: Teaching and Learning Support Student and School Achievement Page 10 Lines 31-32 Increase $750,000 (UGF) -provides Innovative Grant funding Environmental Conservation: Water Water Quality Page 14 Lines 3-4 Increase $400,000 (UGF) -partially restores funding associated with State Primacy for Dredge and Fill Activities Health & Social Services: Public Health Health Planning and Systems Development Page 19 Lines 17-30 Increase $615,500 (UGF) -partially restores funding for the SHARP Program Intent language added -provides additional guidance to the program Health & Social Services: Senior Disability Services Senior Community Based Grants Page 20 of HB 266 and Page 5 of HB 267 Lines 15 & 20 of HB 266 and Lines 28 and 33 of HB 267 Increase $345,000 UGF -provides grant funding for the senior independent living program ($200,000 GF/MH for this program is included in HB 267) Increase $200,000 for a one-time grant to the Mat-Su Aging and Disability Resource Center Public Safety: Alaska State Troopers Page 29 Lines 29-32 Intent -provides that funding may not be used to assist federal employees in enforcing the Marine Mammal Protection act of 1972 as it relates to sea otters in Southeast Alaska. University of Alaska: Fairbanks Campus Page 38 Lines 3 and 29 Increase $500,000 -provides funding to organize a fossil fuel integration program Commerce, Community and Economic Development: Alaska Seafood Marketing Institute Alaska Seafood Marketing Institute Page 60 Lines 11-13 Increase $388,600 (UGF) -restores Y2 of the subcommittee's reduction Department of Natural Resources New Language Section: Page 63 Lines 4-8 Limits the replacement of federal funding with UGF for declining federal grants for the Hot Shot firefighting crews University of Alaska: New Language Section Page 63 Lines 19-22 $12,500,000 -Contingent Appropriation -this language only takes effect if the existing power plant at the Fairbanks Campus utilizes diesel as its primary fuel source for 60 consecutive days Office of the Governor: Statewide Fuel Trigger Page 65 Lines 15-16 This amends the University of Alaska's allocation formula from 10 percent of the total plus or minus three percent to 15 percent of the total plus or minus five percent. This change reflects recent allocation disbursement within the fuel trigger formula. Agency-Wide Technical Additions to the Numbers Section: In-State Natural Gas Pipeline Fund Technical Legislative Finance fund code amendment designed to meet accounting requirements for separation of the Alaska Gasline Development Corporation budget from money spent by other agencies at the request of AGDC. 9:27:57 AM Changes incorporated into  Senate CS for CS for House Bill 267 (FIN) 28-GH2673\R:  Health & Social Services: Behavioral Health Services to the Seriously Mentally III Page 3 Line 27 Increase $75,000 UGF -replaces MHTAAR funding with UGF Health & Social Services: Behavioral Health Suicide Prevention Council Page 4 Line 21 Increase $60,000 -provides additional funds for the suicide prevention program needs Health & Social Services: Senior Disability Services Senior Community Based Grants Page 5 Lines 28 and 33 Increase $200,000 UGF -provides grant funding for the Aging and Disability Resource Center Revenue: Alaska Mental Health Trust Authority Mental Health Trust Operations Page 7 Lines 15-16 Increase $500,000 -provides funding for a Fetal Alcohol Spectrum Disorders Media Campaign 9:28:51 AM AT EASE 9:33:12 AM RECONVENED 9:33:26 AM Co-Chair Meyer pointed out to the committee that the CS reduced the tourism marketing money by $800,000, but noted that the money for the Alaska Seafood Marketing Institute's marketing program was increased on page 2 of the bill; he assumed that this change put the two on equal footing. Co-Chair Kelly replied that in the spirit of balance both programs had been reduced the same amount. Mr. Armstrong added that both programs had taken a 5 percent reduction within the CS. 9:34:07 AM Co-Chair Kelly WITHDDREW his OBJECTION. There being NO further OBJECTION, Work Draft 28-GH2671\E (Wallace 3/26/14) and WORK DRAFT 28-GH2673\R (Wallace 3/26/14) were ADOPTED as a working documents for HB 266 and HB 267. Co-Chair Kelly noted that amendments to the CS would be taken up the following day. Mr. Armstrong stated that there would be an amendment that dealt with the 4 contracts that had been settled, which was not contained within the current CS. 9:35:14 AM Mr. Armstrong expressed appreciation to Amanda Ryder and David Teal for their help on the two budget bills. 9:35:54 AM AT EASE 10:09:21 AM RECONVENED Co-Chair Kelly announced an amendment by Senators Hoffmann Olson and Bishop. Co-Chair Kelly requested to be added as sponsors to Amendment 1. 10:09:58 AM Senator Hoffman MOVED to ADOPT Amendment 1: OFFERED IN: The Senate Finance Committee TO: HB 266 / HB 267 OFFERED BY: Senator Hoffman, Senator Bishop, Senator Olson DEPARTMENT: Fund Capitalization APPROPRIATION: Fund Capitalization (no approps out) ALLOCATION: Community Revenue Sharing Fund AMEND LANGUAGE SECTION 25(b) AS FOLLOWS: Sec. 25(b): (b) An amount equal to 20 percent of the revenue collected under AS 43.20.030(c), not to exceed $53,000,000 [50,000,000], is appropriated from the general fund to the community revenue sharing fund (AS 29.60.850). EXPLANATION: This amendment adds $3 million UGF to the Community Revenue Sharing Fund (from $50 million to $53 million). This amendment is $3 million above the Senate's budget and $7 million below the Governor's request. 10:10:07 AM Co-Chair Meyer OBJECTED for the purpose of discussion. Senator Hoffman explained that the amendment increased the revenue sharing by $3 million. The original request by the governor had been for $60 million, the subcommittee had recommended a funding level of $50 million; the amendment would add $3 million and would result in a number that would be $7 million below the governor's budget. 10:10:37 AM Mr. Armstrong explained that the reduction in 2014 would have no effect on FY15 revenue shares. He said that the $53 million would take effect in the next cycle; $57.6 million would be distributed in FY16, $56.1 in FY17, $55.1 in FY18 and $54.4 in FY19. 10:11:29 AM Co-Chair Kelly explained that the amendment considered public testimony on the legislation regarding municipal assistance and the concern for life, health, and safety issues. 10:12:04 AM Co-Chair Meyer WHITHDREW his OBJECTION. There being NO further OBJECTION, Amendment 1 was ADOPTED. CSHB 266(FIN) was HEARD and HELD in committee for further consideration. CSHB 267(FIN) was HEARD and HELD in committee for further consideration. 10:12:21 AM AT EASE 10:14:31 AM RECONVENED Co-Chair Kelly handed the gavel over to Co-Chair Meyer.