SB 221-CHANGING RPL PROCESS  3:59:55 PM CHAIR SHOWER announced the consideration of SENATE BILL NO. 221 "An Act relating to appropriations of federal receipts; and relating to an increase of an appropriation based on additional federal receipts." He said the committee adopted version I when the bill was first heard and there were amendments for the committee to consider today. CHAIR SHOWER asked the sponsor to give the committee a high level summary of the bill. 4:00:22 PM SENATOR BILL WIELECHOWSKI, Alaska State Legislature, Juneau, Alaska sponsor of SB 221, stated that the bill seeks to fix an arguably unconstitutional problem with the Revised Program Legislative (RPL) process. The process currently allows the governor to appropriate funds without legislative approval even though the state constitution clearly identifies the legislature as the appropriating body. He noted that his office worked with committee staff on amendments to address some of the concerns the committee articulated. CHAIR SHOWER asked if there were questions. 4:01:43 PM SENATOR COSTELLO asked the chair to identify the sponsor of each of the amendments as they're introduced. CHAIR SHOWER stated his intention to offer the amendments. SENATOR REINBOLD stated support for the bill. 4:02:20 PM CHAIR SHOWER moved Amendment 1, work order 32-LS1472\I.1. 32-LS1472\I.1 Marx 4/9/22 AMENDMENT 1 OFFERED IN THE SENATE TO: CSSB 221( ), Draft Version "I" Page 1, line 1, following "Act": Insert "relating to special sessions of the  legislature;" SENATOR HOLLAND objected for an explanation. 4:02:45 PM SONJA KAWASAKI, Staff, Senator Bill Wielechowski, Alaska State Legislature, Juneau, Alaska, explained that Amendment 1 amends the title to include the topic of "special sessions." She credited Senator Costello for identifying that the bill addressed special sessions but the title didn't reflect that. It was an inadvertent omission. 4:03:26 PM SENATOR HOLLAND withdrew his objection. CHAIR SHOWER found no further objection and Amendment 1 was adopted. 4:03:42 PM CHAIR SHOWER moved Amendment 2, work order 32-LS1472\I.2. 32-LS1472\I.2 Marx 4/9/22 AMENDMENT 2 OFFERED IN THE SENATE TO: CSSB 221( ), Draft Version "I" Page 1, line 1: Delete "and" Page 1, line 2, following "receipts": Insert "; and providing for an effective date" Page 3, following line 31: Insert a new bill section to read: "* Sec. 5. This Act takes effect immediately under AS 01.10.070(c)." SENATOR HOLLAND objected for discussion purposes. MS KAWASAKI stated that Amendment 2 establishes an immediate effective date rather than the default 90 days after the legislation is enacted. She said the sponsor's preference is to have an immediate effective date and it was an oversight not to have included that in the original version. 4:04:37 PM SENATOR KAWASAKI asked how the applicability provision in Section 4 fit with the immediate effective date in Section 5. MS. KAWASAKI explained that the applicability provision relates to an appropriation bill the legislature may have passed before the new RPL process in SB 221 is enacted. The bill would not apply to those appropriations. She noted that Legislative Legal Services had advised that a special provision in the operating budget prevents the forthcoming federal infrastructure funding from being covered under the RPL process. 4:06:32 PM SENATOR KAWASAKI asked if she was referring to the contingency language in the last several sections of the operating budget, HB 281. MS. KAWASAKI answered yes; SCS CSHB 281(FIN) provides that the various pockets of federal funds coming to Alaska, including Infrastructure Investment and Jobs Act (IIJA) funding, will not be subject to the RPL process. CHAIR SHOWER commented that those funds wouldn't fall under the RPL process even if SB 221 were to pass with an immediate effective date. MS. KAWASAKI agreed. 4:07:48 PM SENATOR COSTELLO asked if the idea was for the legislature to call itself into special session thereby avoiding an RPL process and ensuring that more legislators would participate in the distribution of the federal funds. MS. KAWASAKI said she couldn't speak to any intent, but the Senate Finance Committee had discussed the notion that federal infrastructure dollars for certain capital projects would be included in the Senate version of the capital budget. CHAIR SHOWER asked what funding SB 221 would apply to if it were to pass with an immediate effective date. SENATOR WIELECHOWSKI answered that it would depend on timing. Should SB 221 be signed into law before the budget passes, it would apply to any subsequent budgets that pass. He noted that the administration did not support placing tighter controls on the RPL process in the budget. He was nevertheless proposing amendments. 4:10:21 PM SENATOR HOLLAND withdrew his objection. CHAIR SHOWER found no further objection and Amendment 2 was adopted. 4:10:37 PM CHAIR SHOWER moved Amendment 3, work order 32-LS1472\I.4. 32-LS1472\I.4 Marx 4/9/22 AMENDMENT 3 OFFERED IN THE SENATE TO: CSSB 221( ), Draft Version "I" Page 2, line 19: Delete "an" Insert "a funded" Page 2, line 20, following "item": Insert "or a maximum funding amount for a new  appropriation item" Page 2, line 21, following the second occurrence of "the": Insert "funded" Page 2, lines 22 - 25: Delete "The increase of the appropriation item [BASED ON ADDITIONAL FEDERAL OR OTHER PROGRAM RECEIPTS NOT SPECIFICALLY APPROPRIATED BY THE FULL LEGISLATURE] may be expended only" Insert "Expenditures under this subsection [BASED ON ADDITIONAL FEDERAL OR OTHER PROGRAM RECEIPTS NOT SPECIFICALLY APPROPRIATED BY THE FULL LEGISLATURE] may be made only [EXPENDED]" Page 2, line 30, following the second occurrence of "the": Insert "funded appropriation item or for the new" Page 3, line 1, following "of": Insert "funded appropriation items or new" Page 3, line 7: Delete "an" Insert "a funded appropriation item or the  maximum funding amount for a new" Page 3, line 24: Delete "a specific maximum increase" Insert "expenditures" Page 3, line 26: Delete "by a specific maximum increase" SENATOR HOLLAND objected for an explanation. MS. KAWASAKI explained that Amendment 3 permits a maximum funding amount for new appropriations. Without this provision, the legislature could only authorize an increase of an appropriation item in an active appropriation bill. The amendment provides flexibility for the legislature to add appropriation items not already in the budget. It also reflects the current practice of the legislative budget process under the budget section referencing permissible RPL spending. She noted that the operating budget under consideration in the Senate Finance Committee provides for open-ended authority. 4:11:50 PM SENATOR HOLLAND withdrew his objection. CHAIR SHOWER found no further objection and Amendment 3 was adopted. 4:12:07 PM CHAIR SHOWER moved Amendment 4, work order32-LS1472\I.5. 32-LS1472\I.5 Marx 4/9/22 AMENDMENT 4 OFFERED IN THE SENATE TO: CSSB 221( ), Draft Version "I" Page 1, line 1, following "federal": Insert "or other" Page 1, line 2, following "federal": Insert "or other" Page 2, line 20, following "federal": Insert "or other" Page 3, line 12: Delete "[OR OTHERWISE]" Insert "or otherwise" Page 3, line 23, following "federal": Insert "or other" Page 3, line 25, following "federal": Insert "or other" SENATOR HOLLAND objected for an explanation. 4:12:31 PM MS. KAWASAKI explained that the bill addresses federal receipts the state may receive and Amendment 4 adds the other receipts that are not specifically identified. This amendment is needed to accommodate the receipt and appropriation of nonfederal sources of funding. It would enable the legislature to provide for spending through the RPL process while also establishing limits to that spending. The amendment tracks the ability to do so, which is in the existing RPL process 4:13:49 PM SENATOR HOLLAND withdrew his objection. CHAIR SHOWER found no further objection and Amendment 4 was adopted. 4:14:06 PM CHAIR SHOWER moved Amendment 5, work order 32-LS1472\I.6. 32-LS1472\I.6 Marx 4/9/22 AMENDMENT 5 OFFERED IN THE SENATE TO: CSSB 221( ), Draft Version "I" Page 2, line 28, through page 3, line 1: Delete all material and insert: "(2) the Legislative Budget and Audit  Committee  (A) shall  (i) review the revised program; and (ii) notify the full legislature that the  revised program is available for review and comment;  and  (B) may recommend to the governor an  alternative funding amount for the specific maximum  increase of the appropriation item or alternative  funding distributions among multiple specific maximum  increases of appropriation items in an applicable  appropriation bill or bills;" SENATOR HOLLAND objected for an explanation. 4:14:27 PM MS. KAWASAKI explained that Amendment 5 requires the Legislative Budget and Audit (LB&A) Committee to notify the full legislature that the proposed RPL packages were available for review and comment. This must be done before LB&A makes any other recommendations to the governor. She thanked the committee members for requesting this addition. SENATOR COSTELLO said she didn't believe the provision in sub- subparagraph ii on lines 6-7 was clear about who would do the review and comment. She suggested adding "by the full legislature" following the word "comment". 4:16:35 PM MS. KAWASAKI agreed that would add clarity. SENATOR KAWASAKI offered his understanding that the legislature already receives notification from LB&C about a new RPL. 4:17:17 PM SENATOR REINBOLD opined that the amendment to Amendment 5 added the needed clarification. 4:18:08 PM At ease 4:23:04 PM CHAIR SHOWER reconvened the meeting. 4:23:12 PM SENATOR COSTELLO moved Amendment 1 to Amendment 5. 221. AMENDMENT 1 TO AMENDMENT 5, I.6  BY SENATOR COSTELLO Page 1, line 7, following "comment": Insert "by the full legislature" CHAIR SHOWER objected for an explanation. SENATOR COSTELLO explained that the addition makes it clear that the review and comment is by all legislators, not just the LB&A committee. SENATOR REINBOLD asked Senator Costello to repeat the explanation. SENATOR COSTELLO said the amendment clarifies that the review and comment is by the full legislature. 4:24:28 PM CHAIR SHOWER removed his objection to Amendment 1 to Amendment 5; finding no questions or further objection, the amendment to the amendment was adopted. 4:24:48 PM SENATOR HOLLAND withdrew his objection. CHAIR SHOWER found no further objection and Amendment 5, as amended, was adopted. 4:25:42 PM SENATOR WIELECHOWSKI thanked the committee for the thoughtful process. CHAIR SHOWER polled the committee for any objection to moving the bill; finding none, he solicited a motion. 4:26:07 PM SENATOR HOLLAND moved to report CSSB 221, work order 32- LS1472\I, as amended, from committee with individual recommendations and attached fiscal note(s). CHAIR SHOWER found no objection and CSSB 221(STA) was reported from the Senate State Affairs Standing Committee. He authorized Legislative Legal Services to make any technical or conforming changes.