Legislature(2019 - 2020)SENATE FINANCE 532

05/10/2019 03:30 PM CONFERENCE COMMITTEE ON HB39 AND HB40


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03:30:57 PM Start
03:48:16 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 39 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 40 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
- Dept. of Administration
- Dept. of Commerce, Community & Economic
Development
- Dept. of Education & Early Development
- Office of the Governor
- Dept. of Labor & Workforce Development
- Dept. of Military & Veterans Affairs
- Dept. of Revenue
- Debt Service
- FY 19 Supplementals in HB 39 & HB 40
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 39(FIN) am(brf                                                                   
sup maj fld)                                                                                                                  
                                                                                                                                
     "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;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 39(FIN) am S                                                                       
                                                                                                                                
     "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 and                                                                    
     reappropriations;  and   providing  for   an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
and                                                                                                                             
                                                                                                                                
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 40(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."                                                                                                        
                                                                                                                                
SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 40(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."                                                                                                        
                                                                                                                                
3:31:19 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  reported  that   limited  powers  of  Free                                                                    
Conference  had  been granted  by  both  the House  and  the                                                                    
Senate. He  invited David Teal, Director  of the Legislative                                                                    
Finance Division, to come to the testifier table.                                                                               
                                                                                                                                
He explained how  objections would be handled.  If there was                                                                    
an objection,  he would make note  of that Item and  hold it                                                                    
aside. The committee would continue  to go through the other                                                                    
Items in  the department,  adopt them,  and then  would come                                                                    
back to any Item that had an objection.                                                                                         
                                                                                                                                
In  the present  meeting the  committee would  be addressing                                                                    
open items  in HB 39  and HB 40  based on the  motion sheets                                                                    
distributed to  members earlier  and dated  May 9th  for the                                                                    
following departments:                                                                                                          
                                                                                                                                
DEPARTMENT OF ADMINISTRATION                                                                                                    
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT                                                                      
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                                   
OFFICE OF THE GOVERNOR                                                                                                          
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                                   
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                     
DEPARTMENT OF REVENUE                                                                                                           
DEBT SERVICE ITEMS                                                                                                              
FY 19 SUPPLEMENTALS IN HB 39 AND HB 40                                                                                          
                                                                                                                                
^ADMINISTRATION                                                                                                               
                                                                                                                                
3:32:49 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Administration budget:                                                                                            
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    House                                                                                                            
     Item 3    House                                                                                                            
     Item 4    House                                                                                                            
     Item 5    Open                                                                                                             
     Item 6    Senate                                                                                                           
     Item 7    Open                                                                                                             
     Item 8    Open                                                                                                             
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferencable Items 1, 2, 3,  4, and 6, and left OPEN                                                                    
Items 7 and 8 in the Department of Administration budget.                                                                       
                                                                                                                                
^COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT                                                                                 
                                                                                                                                
3:33:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
budget:                                                                                                                         
                                                                                                                                
     Item 1    House and change fund code 1235 Alaska                                                                           
               Liquefied Natural Gas Project Fund to fund                                                                       
               code 1004 Unrestricted General Fund                                                                              
                                                                                                                                
     Item 2    Senate All Lines                                                                                                 
     Item 3    Open                                                                                                             
     Item 4    Open                                                                                                             
     Item 5    House                                                                                                            
     Item 6  House                                                                                                              
     Item 7  Senate                                                                                                             
                                                                                                                                
Representative Tilton OBJECTED to Item 2.                                                                                       
                                                                                                                                
Representative Tilton spoke to her  objection to Item 2. She                                                                    
appreciated the  roll Serve Alaska  had played and  the good                                                                    
things the volunteers  had done for the  state. However, she                                                                    
felt  the  program  could  be  administered  better  in  the                                                                    
non-profit  sector. While  the  state's  model was  commonly                                                                    
used  in other  states,  some were  moving  towards a  model                                                                    
where  dollars  were being  placed  with  non-profits to  be                                                                    
administered.  She  explained  that the  amount  of  funding                                                                    
authorized for Serve Alaska to  administer versus the amount                                                                    
of  dollars it  actually directed  equated to  an efficiency                                                                    
level of  only 60  percent. She  thought the  private sector                                                                    
could do a better job of administering the grant funding.                                                                       
                                                                                                                                
3:36:05 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilson commented  that  she  had investigated  the                                                                    
option of privatizing Serve Alaska,  which she found out was                                                                    
possible  but not  in the  current  year. An  administrative                                                                    
order  would need  to be  changed by  the governor,  someone                                                                    
would have to  be in place to accept the  grant funding, and                                                                    
a non-profit would  need to be identified  to administer the                                                                    
grants.  She planned  to use  the interim  to get  things in                                                                    
place  to  make a  change.  However,  if  the item  was  not                                                                    
accepted in the current day,  the program would go away, and                                                                    
the  federal dollars  would  not be  available  to use.  She                                                                    
stressed that  communities used the funding.  She understood                                                                    
Representative  Tilton's  point but  had  not  been able  to                                                                    
address the issue on short notice.                                                                                              
                                                                                                                                
3:37:01 PM                                                                                                                    
                                                                                                                                
Senator  Olson asked  about the  amount  of federal  dollars                                                                    
available or in question.                                                                                                       
                                                                                                                                
Co-Chair  Wilson  replied that  there  was  $1.8 million  in                                                                    
federal receipts  made available with a  committee in place.                                                                    
Although there  was a  committee in  place, a  new executive                                                                    
order by the  Governor would have to  be executed specifying                                                                    
a non-profit as the  administrator. She explained that there                                                                    
had not  been enough  time to address  the issue.  She noted                                                                    
that not all of the  related grants came due simultaneously.                                                                    
She did not want to see any grant monies slip away.                                                                             
                                                                                                                                
Representative Tilton MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: von Imhof, Wilson, Olson, Stedman, Foster                                                                             
OPPOSED: Tilton                                                                                                                 
                                                                                                                                
The MOTION  PASSED (5/1) [Note: House  (2/1); Senate (3/0)].                                                                    
Item 2 was ADOPTED.                                                                                                             
                                                                                                                                
There being  NO further  OBJECTION, it  was so  ordered. The                                                                    
action CLOSED conferencable Items 1, 2,  5, 6 and 7 and left                                                                    
OPEN Items 3 and 4  in the Department of Commerce, Community                                                                    
and Economic Development budget.                                                                                                
                                                                                                                                
^EDUCATION                                                                                                                    
                                                                                                                                
3:39:39 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Education and Early Development budget:                                                                           
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    House                                                                                                            
     Item 3    House                                                                                                            
     Item 4    Open                                                                                                             
     Item 5    House                                                                                                            
     Item 6    House                                                                                                            
     Item 7    House                                                                                                            
     Item 8    Open                                                                                                             
     Item 9    House                                                                                                            
     Item 10   Open                                                                                                             
     Item 11   House                                                                                                            
     Item 12   Open                                                                                                             
     Item 13   Senate                                                                                                           
     Item 14   Open                                                                                                             
     Item 15   Open                                                                                                             
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferencable Items 1, 2, 3,  5, 6, 7, 9, 11, 13, and                                                                    
left OPEN Items  4, 8, 10, 12, 14, and  15 in the Department                                                                    
of Education and Early Development budget.                                                                                      
                                                                                                                                
^GOVERNOR                                                                                                                     
                                                                                                                                
3:40:45 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT  the following in the Office                                                                    
of the Governor's budget:                                                                                                       
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Open                                                                                                             
     Item 3    Open                                                                                                             
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferencable Item  1 and left OPEN Items 2  and 3 in                                                                    
the Office of the Governor budget.                                                                                              
                                                                                                                                
^LABOR AND WORKFORCE DEVELOPMENT                                                                                              
                                                                                                                                
3:41:17 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Labor and Workforce Development budget:                                                                           
                                                                                                                                
     Item 1    Senate                                                                                                           
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferencable Item  1 in the Department  of Labor and                                                                    
Workforce Development budget.                                                                                                   
                                                                                                                                
^MILITARY AND VETERANS AFFAIRS                                                                                                
                                                                                                                                
3:41:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Military and Veterans Affairs budget:                                                                             
                                                                                                                                
     Item 1    Open                                                                                                             
     Item 2    Senate All Lines                                                                                                 
     Item 3    Senate                                                                                                           
     Item 4    House                                                                                                            
     Item 5    Senate All Lines                                                                                                 
     Item 6    Open                                                                                                             
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED  conferencable Item  2, 3,  4,  and 5  and left  OPEN                                                                    
Items 1  and 6  in the Department  of Military  and Veterans                                                                    
Affairs budget.                                                                                                                 
                                                                                                                                
^REVENUE                                                                                                                      
                                                                                                                                
3:42:23 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Revenue's budget:                                                                                                 
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Senate                                                                                                           
     Item 3    Senate                                                                                                           
     Item 4    House All Lines                                                                                                  
     Item 5    House                                                                                                            
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferencable Items 1 through  5 in the Department of                                                                    
Revenue budget.                                                                                                                 
                                                                                                                                
^DEBT SERVICE APPROPRIATIONS                                                                                                  
                                                                                                                                
3:42:56 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to ADOPT  the  following  in  Debt                                                                    
Service Appropriations:                                                                                                         
                                                                                                                                
     Item 1    Open                                                                                                             
     Item 2    Senate All Lines                                                                                                 
     Item 3    Senate All Lines                                                                                                 
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferencable Items  2 and 3 and left OPEN  Item 1 in                                                                    
Debt Service Appropriation.                                                                                                     
                                                                                                                                
^FY 19 SUPPLEMENTALS                                                                                                          
                                                                                                                                
3:43:30 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to  ADOPT the  following  in FY  19                                                                    
Supplementals in HB 39 and HB 40:                                                                                               
                                                                                                                                
     Page 15 Items 1 through 9     Senate                                                                                       
                                                                                                                                
3:43:43 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:45:31 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
3:45:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman restated his motion.  He MOVED to ADOPT the                                                                    
following in FY 19 Supplementals in HB 39 and HB 40:                                                                            
                                                                                                                                
     Page 15 Items 1 through 9     Senate                                                                                       
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED   conferencable  Items   1   through  9   in  FY   19                                                                    
Supplementals.                                                                                                                  
                                                                                                                                
3:46:03 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to  ADOPT the  following  in FY  19                                                                    
Supplementals in HB 39 and HB 40:                                                                                               
                                                                                                                                
     Page 16 Items 10 through 20   Senate                                                                                       
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED  conferencable   Items  10   through  20  in   FY  19                                                                    
Supplementals.                                                                                                                  
                                                                                                                                
3:46:18 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to  ADOPT the  following  in FY  19                                                                    
Supplementals in HB 39 and HB 40:                                                                                               
                                                                                                                                
     Page 17 Items 21 through 31   Senate                                                                                       
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED  conferencable   Items  21   through  31  in   FY  19                                                                    
Supplementals.                                                                                                                  
                                                                                                                                
3:46:34 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to  ADOPT the  following  in FY  19                                                                    
Supplementals in HB 39 and HB 40:                                                                                               
                                                                                                                                
     Page 18 Items 32 through 35, 37 and 38 Senate                                                                              
     Page 18 Item 36                         Open                                                                               
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferencable  Items 32  through 35,  37, and  38 and                                                                    
left OPEN Item 36 in FY 19 Supplementals.                                                                                       
                                                                                                                                
3:46:57 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to  ADOPT the  following  in FY  19                                                                    
Supplementals in HB 39 and HB 40:                                                                                               
                                                                                                                                
     Page 19 Items 39 through 41   Senate                                                                                       
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED  conferencable   Items  39   through  41  in   FY  19                                                                    
Supplementals.                                                                                                                  
                                                                                                                                
3:47:30 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster concluded  the business  for the  committee                                                                    
hearing.   Once  the   next  meeting   date  and   time  was                                                                    
determined, the meeting would be noticed on BASIS.                                                                              
                                                                                                                                
Co-Chair   Stedman  MOVED   to  ADJOURN.   There  being   NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
HB  39  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  40  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

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