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HomeMy WebLinkAbout02252019 City Council Laydown - Squires Legislative Report IioZI.5 Cc 1:4‘06JA Cu;res) February 15, 2019— Legislative Report House Bills HB 2—An Act relating to the relocating and convening of the legislature at the Legislative Information Office in Anchorage; relating to the regulation of lobbying; relating to annual student guests of the legislature; relating to locations of sessions of the legislature; relating to the Legislative Ethics Act; relating to the relocation of functions of state government; and providing for an effective date. This bill, first of all takes care of the prohibition of legislators accepting campaign gifts at the site of the special or regular session. The law currently states that they may not accept gifts while in the capitol city. This bill changes that prohibition to read "Municipality of Anchorage." This then, moves all Special and Regular Legislative Sessions to be held at the Municipality of Anchorage Legislative Information Office (L1O). Also, lobbyists would be required to list addresses of offices within Anchorage rather than the now required offices listed in Juneau. Basically, this lengthy bill simply changes all references to the Capitol City with regards to session issues, to the Municipality of Anchorage. HB 6—An Act relating to the display of the national and state mottos. This bill would affect municipalities in that all city and borough school districts would be required to have "each library and classroom of a district prominently display the national motto In God We Trust and the state motto North to the Future to the extent donations are available." The school board may only use money donated to the school district to pay for the design, creation, or purchase of a display. If a person brings an action to court to challenge the constitutionality of a display, the Department of Law shall defend the constitutionality and shall hold the School District/Municipality harmless. This bill is almost certain to bring interest by the ACLU and would require explicit guarantees from the State on their exact definition of"hold harmless." HB 11—An Act relating to participation of certain peace officers in the defined benefit and defined contribution plans of the Public Employees' Retirement System and Alaska; and providing for an effective date. This bill would allow state employees (troopers) who are hired after 2006 (closing date of the defined benefit plan) to make a one-time election to participate in that plan. This bill needs to be followed closely, as there may be large ramifications to the municipalities in the liabilities being charged to municipalities. HB 13—An Act requiring the Department of Health and Social Services to apply for a waiver to establish work requirements for certain adults who are eligible for the state medical assistance program. This bill would require the department to apply for a waiver that allowed them (the Department) to require a work requirement plan for all those seeking state medical assistance. In other words, the person applying for state medical assistance would be required to show they either work for a minimum of 20 hours OR they are actively seeking employment or t r «' •,ft a y w *r .41 4145 e: participating in an educational or training program intended to lead to employment. While this bill has good intent, how will it work in smaller, remote municipalities across the state where there are a minimal number of jobs or training programs. HB 17—An Act repealing the certificate of need program for health care facilities; making conforming amendments; and providing for an effective date. This bill will have affect those municipalities that operate hospitals, as they are currently required to have a Certificate of Need. HB 21 —An Act relating to insurance coverage for contraceptives and related services; and relating to medical assistance coverage for contraceptives and related services. This bill would require that all insurance plans in the state provide coverage for prescription contraceptives and voluntary sterilization procedures. This will affect insurance rates throughout the state (including those being held by municipalities). HB 28—An Act relating to an annual report concerning the payment of equal pay for comparable work; increasing the minimum wage; and providing for an effective date. This bill would require the minimum wage to raise from $9.75 per hour (as went into effect on January 1, 2019) to $15.00 an hour, effective in one year (January 1, 2020) and thereafter adjusted annually for inflation and based upon the CPI for the Anchorage Metropolitan area. It would also require the Executive Director of the Human Rights Commission to prepare an annual report regarding pay practices in the State. While this bill has good intent, it may have a huge detrimental effect on small municipalities that depend primarily on Community Assistance. House Joint Resolutions HJR 1— Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of a broad-based individual income tax or statewide general sales tax without the approval of the voters of the state. This joint resolution calls for a vote by the public to decide on whether or not to "establish a broad-based individual income tax or a statewide general sales tax." In reference to municipalities being the sole source of sales tax in the state, the real issue with this bill is might be in the future when a question is actually put on the ballot. HJR 3 — Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund and establishing the earnings reserve account. This joint resolution calls for a change to the constitution allowing the Legislature to establish an earnings reserve account as a separate account in the fund. Income from the fund shall then be deposited into the new account as soon as it is received and may be invested as authorized for investments of the principal. This is basically the POMV method that has been talked about in the state of Alaska for many years. Senate Bills SB 1—An Act repealing the certificate of need program for health care facilities; making conforming amendments; and providing for an effective date. This is a companion bill to HB 17. It has had referrals assigned and will first go to the HSS Committee. SB 5—An Act relating to management of certain municipal assets by the Alaska Permanent Fund Corporation. This bill would be an "option" available to all municipalities if they have assets that they established under ordinance or charter; is a savings account; consists of only cash; and has at least $50,000,000. To allow the Permanent Fund Corporation to manage these funds, the municipality must pass a resolution. The amount is high enough, that there are few municipalities that will even have the ability to think about this option. But, again, it is an option, which makes one more tool in the toolbox. This bill, while not yet on the schedule, will first go to the C&RA Committee. SB 7—An Act requiring the Department of Health and Social Services to apply for a waiver to establish work requirements for certain adults who are eligible for the state medical assistance program. This bill is a companion bill to HB 13. This bill was heard in the HSS Committee on 02/15/19 at 1:30 p.m. for invited testimony only. It will be heard again in Senate HSS on 02/20/ at 1:30 p.m. SB 8—An Act restricting the release of certain records of convictions; amending Rule 37.6, Alaska Rules of Administration; and providing for an effective date. The intent of this bill is to reduce the barriers to employment for people who have been convicted of low-level marijuana possession crimes that would be legal under today's laws. By protecting records of certain low-level crimes from a criminal history background check, the intent of this bill would make it more likely that people convicted of only low-level crimes will become contributing members of society. The reason for this bill to pop up here is that this would also require municipalities to restrict the release of their records of people convicted under a municipal ordinance. Similar laws have been passed in other states that have made marijuana a legal drug. A zero fiscal note has been attached to this bill by the court system. This bill was heard on Friday, 01/25/19 where it was held over for more discussion. The committee had more than a few questions and comments. This bill is identical to a bill that came before the Legislature last year. Many of the Legislators continued to use the word, "cleared," in that they were nervous about clearing people of prior convictions. This bill would not "clear" anyone of anything. The bill simply denies access to sections of a court record for simple employment or housing opportunities. Health jobs and and jobs involving children would allow access to those records. The records involved would ONLY be a record involving the possession of less than1 oz. of marijuana. If robbery or car theft, etc. were involved in that particular arrest, access would still be available. Another concern involved people who may have "many" simple marijuana convictions. This bill is not currently scheduled for another hearing. SB 19—An Act making appropriations, including capital appropriations, supplemental appropriations, reappropriations, and other appropriations; making appropriations to capitalize funds; and providing for an effective date. Short list of capital projects and funds appropriated for infrastructure, including Village Safe Water. Funds reappropriated from AMHS and calls for its divestiture. AML to monitor. SB 20—An Act making appropriations for the operating and loan program expenses of state government and for certain programs; capitalizing funds; amending appropriations; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date. This updated version has reduced the budget by $1.6B and threatened all state- supported institutions without decreasing the size of State government. The largest proposed cuts are to education, health and the University. A large portion of cost-shifting and municipal cuts are included. This bill will require constant monitoring and active lobbying to make sure these line items remain in the budget in the amount necessary. This bill was last heard in Senate Finance on 02/14 and 02/15. It will be heard again next week every single day at 9:00 a.m. in Senate Finance. SB 22—An Act relating to management of enhanced stocks of shellfish; authorizing certain nonprofit organizations to engage in shellfish enhancement projects; relating to application fees for salmon hatchery permits; and providing for an effective date. This bill sets up regulations for shellfish operations and is a bill heard last year. There will be an assessment on the projected value of the shellfish or on the pounds of shellfish harvested charged to fishermen who choose to participate in this fishery. This assessment shall provide sufficient revenue to cover debt service, reasonable operating expenses, reasonable maintenance expenses, and development of a reserve fund up to 100% of annual operating costs of the project. The assessment may not exceed 50% of the value of the shellfish. The entire intent of this bill is for enhancement purposes and to help bring back decreasing brood stock. It is loosely based on finfish enhancement processes. There was testimony opposed to this bill, as well, however. The concern was that it would shut out the fisherman of wild stocks in that the hatcheries would get more than their fair share, shorting the commercial fishermen. Also, with severe budget cuts, it was felt that ADF&G could not pay for this program. This bill was heard in Senate Resources on 02/11/19. It was passed out of committee and now moves on to Senate Finance. SB 23 —An Act making special appropriations from the earnings reserve account for the payment of permanent fund dividends; and providing for an effective date. This bill simply allows for a special appropriation to make it law to give the amount deducted from the last couple of years' of permanent funds, back to the people of Alaska. One of the items not lost on this bill is that the Governor has asked for approval of this bill BEFORE the Legislature approves the budget, thus guaranteeing the people this extra amount (as he promised in his campaign) and then forcing the Legislature to meet all other needs with what is left. This bill was heard and held in Senate State Affairs on 02/05/19. SB 24—An Act directing the Department of Revenue to pay dividends to certain eligible individuals; and providing for an effective date. This bill lays out the definition of who is eligible to receive these past amounts. To receive the extra amount in the 2019 dividend, you must be eligible for a 2019 dividend and have received a 2016 dividend. To be eligible for the extra amount in 2020, you must be eligible for a 2020 permanent fund and have received a 2017 dividend. To be eligible for the extra money in the 2021 permanent fund check, you must be eligible for the 2021 permanent fund and have received a 2018 permanent fund check. This bill was heard and held in Senate State Affairs on 02/05/19. SB 27—An Act relating to health care insurers; relating to availability of payment information; relating to an incentive program for electing to receive health care services for less than the average price paid; relating to filing and reporting requirements; relating to municipal regulation of disclosure of health care services and price information; and providing for an effective date. This bill appears to (among other things), a municipality from implementing a price information regulation by health care providers. That regulation would be entirely a state authority. SB 39—An Act making supplemental appropriations, reappropriations, and other appropriations; amending appropriations; capitalizing funds; and providing for an effective date. SB 45—An Act relating to the imposition of term limits on school board members; and relating to municipalities. This bill would give the residents of an REAA, the ability to petition the state to impose term limits on school board members of that REAA. Where municipalities come in is that this bill does not prevent a municipality from enacting their own term limits on school board members of their respective schools. SB 47—An Act relating to restoration of tenure for certain disabled individuals; relating to the Public Employees' Retirement System of Alaska and the teachers' retirements system; providing certain employees an opportunity to choose between the defined benefit and defined contribution plans of the Public Employees' Retirement System of Alaska and the teachers' retirement system; and providing for an effective date. This bill allows a tenured teacher, retired under a disability, to come back to work after restoration to health, and be restored to full tenure rights, as well as other changes to teachers' retirement options. For municipalities purposes, this bill would allow public elected officials of municipalities, who are not enrolled in the PERS system, to become PERS members if they make at least $2,001 per month. Elected officials who have retired under the PERS system or have no prior service with the PERS system may file an irrevocable waiver. Then, the bill spells out the benefits to each new enrollee, according to their years of service, etc. Employees that are hired after this bill becomes law, may make a one-time election to participate in the defined contribution plan retroactive to the date of hire and may transfer any payments made to the defined benefit plan. SB 48—An Act relating to the goal of obtaining 50 percent of the energy used by the state and state-funded facilities from clean energy sources by 2025. This bill would require that 50 of the energy used by the state and state-funded facilities, shall provide an estimate of the percentage of energy that facility obtains from a clean energy source (wind, solar, geothermal, wasteheat recovery, hydrothermal, wave, tidal, river in- stream, hydropower; low emission nontoxic biomass based on solid or liquid fuels from wood, forest, and field residues, or animal or fish products; landfill gas; digester gas; or a heat pump). The definition of a state-funded facility includes all public school buildings and any municipal facility within the service of a utility that receives PCE funding. SB 49—An Act relating to the retrofitting of certain public facilities and community facilities; relating to the performance of energy audits on schools and community facilities; and relating to the duties of the Alaska Energy Authority and the Alaska Housing Finance Corporation. This bill would require that the AEA and AHFC coordinate to perform audits and then retrofits of public buildings deemed least energy efficient. This intent is to eventually save money to the state with regards to energy costs through direct cost and through the PCE program. SB 50—An Act imposing an annual educational facilities maintenance and construction tax on net earnings from self-employment and wages, relating to the administration and enforcement of the educational facilities maintenance and construction tax; and providing for an effective date. This is a re-write of a previous bill —an education tax. The tax levied would be $30 annual payment imposed on wages and net earnings from every resident and non-resident with Alaska income. This $30 would be deducted and withheld from the first regular payroll of the year. These funds would then be used for educational facilities maintenance. SB 51 —An Act requiring the designation of state water as outstanding national resource water to occur by law; relating to the authority of the Department of Environmental Conservation, the Department of Fish and Game, and the Department of Natural Resources to nominate water for designation as outstanding national resource water; relating to management of outstanding national resource water by the Department of Environmental Conservation; and providing for an effective date. Waters, within the State, may be nominated as Outstanding National Resource Water (ONRW), but this nomination must be agreed upon by all three of the above state departments. The definition of Outstanding National Resource Waters is "high quality waters such as waters of National and state parks and wildlife refuges and waters of exceptional recreational or ecological significance." As many of Alaska's municipalities are located in or near National Parks/Forest/etc. municipalities must look long and hard at this to make sure that it does not stop much necessary development within their community. SB 57—An Act repealing the credit for municipal payments against the state levy of tax on oil and gas exploration, production, and pipeline transportation property; repealing the levy of tax by a municipality on oil and gas exploration, production, and pipeline transportation property; and providing for an effective date. This bill would disallow municipalities that currently tax property on which the pipeline is located, from taxing the oil companies on that land. This bill will have a major financial impact on Valdez, Fairbanks, Kenai, and Anchorage, etc. SB 59—An Act repealing statutes providing for reimbursement for costs of University of Alaska capital projects, municipal capital projects, and power projects; and providing for an effective date. This bill simply and horribly repeals the statutes dealing with reimbursement for municipal capital projects! End of story. SJR 4— Proposing amendments to the Constitution of the State of Alaska prohibiting the establishment of, or increase to, a state tax without the approval of the voters of the state; and relating to the initiative process. This journal resolution, submitted by the Governor, simply requires the approval of the voters in order to establish or increase any tax. This also relates to a citizen's initiative that attempts to establish a tax, in that the Legislature must then approve the initiated law by a resolution. SJR 5 —Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund and the permanent fund dividend. This Senate resolution would add language to the permanent fund statutes that would require a portion of the income from the permanent fund would be transferred solely for dividend payments and no appropriation will be necessary. Also, all new eligibility requirements for the permanent fund cannot take place unless approved by the voters. SJR 6— Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit; relating to the budget reserve fund and establishing the savings reserve fund; and relating to the permanent fund. This resolution would repeal the process used by the Legislature currently to appropriate amounts for the permanent fund. This resolution would set new standards and regulations. Bills addressing Crime and/or fixes to last session's crime bill: HB 4—An Act relating to assault in the third and fourth degrees; and relating to reckless endangerment. HB 9—An Act relating to criminal law and procedure; relating to controlled substances; relating to victims of criminal offenses; relating to probation; relating to sentencing; relating to treatment program credit for time spent toward service of a sentence of imprisonment; relating to Violent Crimes Compensation Board; relating to permanent fund dividends; relating to electronic monitoring; relating to penalties for violating municipal ordinances; relating to parole; relating to community work service; relating to revocation, termination, suspension, cancellation, or restoration of a driver's license; relating to the duties of the commissioner of corrections; relating to the duties of the Department of Health and Social Services; relating to civil in rem forfeiture actions; repealing Rules 38(d) and (e), Alaska Rules of Criminal Procedure; and providing for an effective date. HB 10—An Act relating to misconduct involving a controlled substance; providing for substitution of judgement; and relating to sentencing. HB 14—An Act relating to assault in the first degree; relating to sex offenses, relating to the definition of dangerous instrument; and providing for an aggravating factor at sentencing for strangulation that results in unconsciousness. HB 15—An Act relating to sentencing for vehicle theft in the first degree. SB 3—An Act relating to the crime of harassment; providing for an aggravating factor at sentencing for certain felonies committed for the sexual gratification of the offender; and relating to registration of sex offenders. This bill will first be scheduled in Senate Judiciary. SB 12—An Act relating to assault in the first degree; relating to sex offenses; and relating to credit toward a sentence of imprisonment for time spent in a treatment program or under electronic monitoring. This bill was heard in Senate Judiciary on 02/13/19 at 1:30 p.m. and again on 02/15/19 at 1:00 p.m. and was invited testimony only. It is scheduled again in Senate Judiciary on 02/18 and 02/22 at 1:30 p.m. SB 15—An Act relating to a petition to convene a grand jury; and repealing and reenacting Rule 16(b)(3), Alaska Rules of Criminal Procedure, concerning a prosecuting attorney's duty to disclose favorable information to a defendant in a criminal proceeding. This bill will be headed toward Senate Judiciary. SB 32—An Act relating to criminal law and procedure; relating to controlled substances; relating to probation; relating to sentencing; relating to reports of involuntary commitment; amending Rule 6, Alaska Rules of Criminal Procedure; and providing for an effective date. This bill repeals provisions of SB 91 that relate to the classification of crimes, sentencing, and probation of offenders. Measures in this bill will increase sentencing and probation lengths for most offenses, create additional tools which will allow the State to identify repeat offenders and those that threaten others, strengthen penalties for drug traffickers that prey on Alaskans through the distribution of drugs, and finally, create efficiencies within the criminal justice system —giving prosecutors and courts the tools they need. This bill was again addressed in Senate Judiciary and was "discharged" from that committee, at which time a Senate State Affairs referral was added. It is currently not on the schedule at this time. SB 33—An Act relating to pretrial release; relating to sentencing; relating to treatment program credit toward service of a sentence of imprisonment; relating to electronic monitoring; amending Rules 38.2 and 45(d), Alaska Rules of Criminal Procedure; and providing for an effective date. This bill was heard in Senate State Affairs on 02/14/19 where it was held. It is also back on the schedule for Senate State Affairs on 02/19 and 02/21 at 3:30 p.m. SB 34—An Act relating to probation; relating to a program allowing probationers to earn credits for complying with the conditions of probation; relating to early termination of probation; relating to parole; relating to a program allowing parolees to earn credits for complying with the conditions of parole; relating to early termination of parole; relating to eligibility for discretionary parole; relating to good time; and providing for an effective date. This bill was heard in Senate State Affairs on 02/12/19 at 3:30 p.m. and again on 02/14/19 at 3:30 p.m. where it was held. It will be heard again on 02/19 and 02/21 in Senate State Affairs at 3:30 p.m. SB 35—An Act eliminating marriage as a defense to certain crimes of sexual assault; relating to enticement of a minor; relating to harassment in the first degree; relating to harassment in the second degree; relating to indecent viewing or production of a picture; relating to the definition of"sexual contact;" relating to assault in the second degree; relating to sentencing; relating to prior convictions; relating to the definition of"most serious felony;" relating to the definition of"sexual felony;" relating to the duty of a sex offender or child kidnapper to register; relating to eligibility for discretionary parole; and providing for an effective date. This bill heard in Senate was heard on 02/13/19 at 1:30 p.m. and again on 02/15/19 at 1:00 p.m. and was invited testimony only. It will be heard next week on 02/18 and 02/22 in Senate Judiciary at 1:30 p.m.