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Contact Information:
Toll Free:(800) 665-2689
In the Homer Area:(907) 235-2921
Via Mail or in Person: 345 W. Sterling Hwy., Suite 102B
Homer, Alaska 99603
Fax:(907) 235-4008
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Greetings from Juneau on the 106th day of the legislative session. It has been a very busy week. We had more than 8 hours of hearings and committee work on Tuesday and Wednesday alone relating to the reform of the Public Employee and Teacher Retirement Systems. The testimony we received was much appreciated and we were able to incorporate many suggested changes as amendments to the Senate bill. House Finance is the final committee of referral for this major legislation. We have also been working hard to get the important education projects from our district added into , an appropriations bill sponsored by Senator Ben Stevens (R-Anchorage). The bill proposes using earnings from the Permanent Fund to pay for education-related deferred maintenance projects around the state.
I was able to meet with several people from the district this week. Homer Mayor, Jim Hornaday and city council members Beth Wythe, Val McLay and Doug Stark were in town for the Alaska Municipal League fly-in, along with Sandy Stark with the Homer Hospital Board. Sue Hecks was in to visit, as was Richie Caffroy with the National Education Association, both from Anchor Point.
I will be gone from Juneau for the next few days. I’m sure my staff will be doing their usual great job and will forward any priority issues to me. Thanks to the many who have supported me in the recent loss of my mother. I look forward to the reunion of our family for a celebration of her full life and accomplishments.
State Affairs Committee
We transitioned to the "24 hour rule" this week, meaning that committees can be scheduled the day before they meet as opposed to the rest of the session when committees must be scheduled a week in advance. The 24-hour rule goes into effect when members from both the House and Senate meet in conference committees to finalize budget negotiations. We have not cemented this week's committee schedule yet, so interested parties will need to keep an eye on BASIS or get in touch with my staff for the latest information.
The main events last week were the hearings on SB 141. We discussed the bill in committee on Tuesday morning and then recessed until 6:00 that evening. We took public testimony on the bill from then until 10:30 p.m. Many testifiers expressed concerns over the effect of the PERS/TRS overhaul on employee recruitment, while others were concerned about the financial impact to the state and to municipalities if nothing is done. The committee met again the following morning at 8:00 a.m., worked on amendments and passed the bill out of committee.
The major amendments that we added to reflect some of the most important elements of ; the House State Affairs retirement bill we have been working on all session.
State employees will breathe easier knowing that we repealed the increase in current employee contribution that proposed. This means the current legislation has no impact to current PERS/TRS retirees or employees.
In State Affairs we were able to increase the medical benefits in . Under the bill as it came to us, a retiree was not eligible to receive system-subsidized health care until they were Medicare eligible, currently age 65. We changed the bill to allow members healthcare benefits 5 years before they become eligible for Medicare, currently age 60. This requires an increased contribution of 2% from employers.
House State Affairs made member’s Health Reimbursement Accounts (HRA) more accessible. An HRA is an account your employer puts money into that you can then use for medical expenses when you retire. Previously, if you left employment for more then 5 years, you forfeited access to those funds. State Affairs eliminated that limitation and allowed a member to use their HRA after 10 years of service, regardless of whether or not they retire directly from the system.
consolidates the 3 boards that manage and regulate the current retirement system into one 9-member board with full fiduciary responsibility for the fund. House State Affairs changed the composition of the board to require additional PERS/TRS representatives, (2 instead of 1 from each group). Under the bill as it came to us, all board members were appointed by the governor. We changed that to have PERS/TRS representatives elected by their member groups.
House State Affairs amended to place Department of Labor instructors in TRS if they were formerly TRS members, whether or not the instructor position requires a teaching certificate. This addresses a problem AVTEC employees have when they switch over from teaching in early education, such as at the High School level, to adult vocational education.
We also heard and passed from committee , sponsored by Representative John Harris (R-Valdez). This bill seeks to eliminate the Constitutional Budget Reserve (CBR). Funded by proceeds from tax and royalty disputes with oil companies, the CBR is a pot of money that the legislature draws from to balance the budget when low oil prices cause revenues to fall short of expenditures. Over $5 billion has been drawn out of the CBR since its creation in 1990. HJR 12 would amend the state constitution to create a Capital Construction Permanent Fund from existing CBR money. Appropriations from the fund would not be allowed to exceed five percent of the average of the fiscal year end market values of the fund for the first five of the preceding six years. This is an attempt to create fiscal stability for Alaska. I gave HJR 12 a Do Pass.
creates a hotline within the office of the ombudsman that would receive reports of public employee waste, fraud, and abuse. An additional position would be required within the ombudsman office to investigate these claims, so the bill would have a fiscal impact. HB 86 would require the ombudsman to prepare an annual report for the legislature regarding the number of calls they received, and the types of fraud, waste, and abuse reported through the hotline program. I gave this bill a Do Pass.
We heard and held four bills in committee for further work. clears the record on cases set aside by the court. requires that any ballot proposal to bond for a new state capitol take into consideration all the costs of moving the capitol as well as all the costs of creating a new capitol building in Juneau. finds the current legislative hall unsafe and too small, and directs the Legislative Council to draw up plans for a new this hall. seeks to end daylight savings time in Alaska. The proponents of ending daylight savings citied unnecessary disruption in daily schedules and sleep patterns caused by changing the clocks twice a year. Opponents were concerned it would strain doing business with the lower 48 by increasing the time difference.
Resources Committee
Last week three bills and one resolution moved out of committee. urges the governor to direct the division of oil and gas, in the Department of Natural Resources, to undertake a comprehensive review of the subject of Cook Inlet oil and gas platform abandonment in order to develop new oil and gas platform abandonment regulations. I gave this resolution a Do Pass. establishes the Hydrogen Energy Partnership in the Department of Commerce, Community, and Economic Development and requires the commissioner to seek public and private funding for the partnership. I gave this bill a Do Pass. Due to my trip to California I did not attend the hearing on and on Wednesday. HB 218 allows private hatcheries to open special harvest areas to a common property harvest in order to recover hatchery costs. This bill specifies that a hatchery permit holder may recoup facility costs through an assessment of up to 40 percent on the common property fishery within a special harvest area.
authorizes the Board of Fisheries to adopt regulations for individuals holding two entry permits for a salmon fishery. The intent behind the legislation is to reduce the amount of gear in the water in overcapitalized fisheries such as Bristol Bay. One of the concerns that I have expressed with this bill is that it may actually bring gear back into fisheries that already see many permit holders declining to participate for economic reasons. In Bristol Bay the number of participating fishermen has dropped in the last decade. If the board were to give incentives such as allowing a double permit holder an additional shackle of gear, there may be enough individuals fishing with additional shackles that the actual amount of gear in the water would be increased.
HESS Committee
The Committee discussed a single bill this week, , which relates to the licensing, regulation and enforcement of various facilities under the purview of the Department of Health and Social Services (DHSS). This includes assisted living homes, hospitals and nursing facilities, among many others. Under a 2003 Executive Order, the DHSS was reorganized to consolidate its various licensing functions. Currently, there are approximately a dozen statutory schemes under which the department licenses different facilities. This creates a cumbersome, and sometimes redundant process, which many facilities in our district have complained about. Among other things, the bill streamlines this process by consolidating all standards, enforcement and appeals rights in to a single statutory chapter. The bill would also require DHSS to administer a single consolidated background check system across all of its programs. This follows on the heels of a $4.9 million dollar grant received by the department to conduct background checks in an effort to reduce the risk of neglect and abuse of vulnerable clients.
An important amendment was added to the bill on Friday that expands provider service for Home Care patients under Medicaid. This means that providers will be reimbursed from Medicaid for a range of tasks previously not reimbursable, such as running errands for a person. DHSS is opposed to the amendment as it would cost the state between 13 and 64 million dollars annually and are looking to make changes in HB 193s next committee, Judiciary.
Ways and Means Committee
On Monday, we discussed , a resolution by Representative Rokeberg proposing amendments to the constitution relating to the Constitutional Budget Reserve (CBR). If passed by a vote of the people, the ¾ vote currently required to draw from the account would be eliminated, as would the limit that can be drawn. The bill was passed with recommendations. It is important to note that the bill passed with an understanding it would be addressed alongside further down the road. HRJ 12 would roll the CBR into a Capitol Construction Permanent Fund account. Both would eliminate the CBR as a budget cushion and are meant to pressure the legislature into adopting a sound fiscal plan.
The committee met on Friday to discuss a single resolution, . This resolution proposes amending the constitution to allow withdrawals from the permanent fund based on the Percent of Market Value (POMV), formula. This has been proposed before and therefore many legislators are already familiar with the idea. In the Twenty-Third Legislature the same resolution passed the House and died in the Senate. HJR 19 passed from committee and will continue on to Judiciary.
SB 93
I offered an amendment in House Finance to , a bill that increases vessel license fees and permit renewal fees in order to fund the Commercial Fisheries Entry Commission. My amendment breaks the fee schedule on vessel license into 25-foot categories. Prior to this amendment vessels 75-150 feet in length were charged the same fee as vessels 150-250-foot vessels. My amendment recognizes the vast differences in fishing power between 75 and 150-foot vessels and proposes a fee schedule that reflects these differences. I also proposed an amendment that would remove the $3000 cap placed on permit renewal fees. CFEC permit renewal fees are set at 0.4% of the value of a fishery. By setting a $3000 cap on fees, over 200 trawlers are not required to pay at the same rate as the rest of the fishermen in Alaska. I withdrew the amendment, but not before raising some discussion on the matter within the Finance committee.
Following Bills
All bills can be found on the State's Bill Action and Status Inquiry System (BASIS). You can see what committee a bill is in, when it will be heard, how committee members voted, and much more. Don't forget that you can view all bills relating to your areas of interest by selecting "Subject Summary" from the menu on the right. You can access BASIS through the link below.
Live on the Web
Most committee hearings can be seen and heard on Gavel to Gavel, which is broadcast on both local access TV and on the internet. You can also access online archives from their website. .
Contact Us
If you would like to speak to me regarding a specific issue, it is helpful to first get in touch with the member of my staff handling related issues. You can click on their email addresses to send them a note, or just give us a call at the office. Please provide your full name, address and phone number on any correspondence with the office. Your time and effort are much appreciated.
Louie Flora
State Affairs, Resources, Fisheries, HB 25
(907) 465-4963
louie_flora ''@'' legis.state.ak.us
Katie Shows
Health Education and Social Services, HB 20, HB 24
(907) 465-2028
katie_shows ''@'' legis.state.ak.us
Ian Laing
Ways and Means, HB 50
(907) 465-2689
ian_laing ''@'' legis.state.ak.us
Rep. Paul Seaton
House District 35
(800) 665-2689
representative_paul_seaton ''@'' legis.state.ak.us # # # |
