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Special Session First Newsletter
We are waiting impatiently for more than just legislation to move here in Juneau! Louie’s wife Sara has not had her baby yet, and the due date has been postponed to next week.
This is the strangest special session anyone can remember. Usually a special session is called to deal with an emergency or some “special” issue or two that needs to be immediately resolved. The diversity of issues makes this seem like another regular session – except that most legislators have no committee assignments or other duties, which is increasing everyone’s frustration level. The Governor set his agenda for the special session to include eleven bills: HB 130 University Land Grant, HB 147 Insurance Omnibus, SB 73 State Virology Lab, HB 94 Elections, SB 46 Capital Budget, SB 130 Workers Comp, SB 141 PERS/TRS, HB 1 Base Student Allocation, HB 66 Mental Health Budget, HB 67 Operating Budget, and SB 67 Supplemental Appropriation/CBR draw.
Capital Budget
The Senate split their version of the capital budget into SB 46 and SB 97, the slow track supplemental and finally passed them to the House on Wednesday, May 18th. This version duplicated the school projects in the general capital budget that were contained in the original version of SB 155 funded by a draw on the Permanent Fund earnings reserve. House Finance used SB 46 as the vehicle for both the capital budget and the supplemental, trimming down appropriations by roughly $218 million. The Senate budget provides for the use of future earnings of the Amerada Hess fund to issue ‘revenue’ bonds for $335 million in capital projects. The House budget proposes use of $30 million from FY05 and $30 million in FY06 Amerada Hess fund earnings to pay only for road projects.
The House is in negotiations with the Senate on its proposed Capital Budget. This is to prevent the Senate’s rejection of the House version, and prevent the bill going to a conference committee. Obviously reaching this agreement will be time consuming for leadership and the finance committees. This bill is perhaps the most important chess-piece in the politics that occur at the end of session, and will be one of the last bills to pass.
Operating Budget
The House version of the operating budget passed to the Senate in early April. The House version included $1.5 billion in General Fund appropriation, $1.6 billion in federal funds, and $822 million in other funds. The Senate version of the operating budget includes a $1.5 billion G.F. draw, $1.6 billion in federal funds and $823 in other funds.
One difference between the two budgets is that the Senate version draws money from the Constitutional Budget Reserve, while the House version does not. The operating budget has been in conference committee since April and is ready to pass as soon as agreement has been reached on the other disputed issues.
HB 130
HB 130, conveying roughly 250,000 acres of state land to the University of Alaska was passed by the legislature. An amendment made to the bill by the conference committee added Pelican and Idaho Inlet to the list of areas not to be conveyed to the University.
HB 94
The Elections bill passed the House and Senate after the conference committee removed the provision for the contribution of unlimited funds for political party building, which had been added by the Senate. I argued against this soft money provision on the House floor and helped get the bill assigned to the conference committee
SB 130
The Workers Compensation Reform conference committee bill was rejected by the House on a close 20-20 vote. SB 130 was sent to another free conference committee for more amendments to the bill. Most of us are in full agreement that something needs to be done to lower escalating insurance rates. This bill proposes to create an appeals commission specific to workers’ compensation with members appointed by the governor rather than the current system in which superior court judges hear appeals on a rotating basis. The bill makes the workers compensation division responsible for addressing rising medical costs. It also allows the division to contract with a non-profit agency to provide legal services to injured workers.
The second conference committee made changes to the areas of the bill that were concerning to me. Previously, the attending physician made the sole determination concerning long term palliative care (‘feel better’ but not curative) for an injury. This was changed in the conference committee allowing this long-term palliative care decision to be challenged. Another area that concerned me was language creating the new “major contributing cause” injury standard. Under the old bill, it needed to be shown that the employee’s current workplace was the major contributing cause to a workplace injury for the employer to be liable to pay the employee workman’s compensation claim after the original curative treatment. The conference committee tightened this clause, requiring that the workplace only be shown as the “substantial factor” in the death, disability or need for medical care.
SB 141
The PERS/TRS bill recommendations forwarded to the House by a second conference committee were rejected. A third conference committee was appointed that retained all the recommendation of the prior conference committees and added a provision increased by two percent employer contribution to the Teachers Retirement System. This increase in contribution is designed to offset the lack of Social Security and Supplemental Benefit System matching payments in TRS. The conference committee gave TRS members the death and disability benefits provided to other public employees. I vigorously support these changes.
HB 1
The bill increasing the Base Student allocation from $4,576 to $4,919 has been held in a Conference Committee since April. The Senate inserted a condition that $38. million of the $70 million increase to schools (for increased retirement funding requirements) would not take effect unless the Twenty-Fourth Alaska State Legislature, during it's first regular session, passes a Defined Contribution Retirement plan, SB141.
HB 66
The Mental Health Budget sent over from the Senate was rejected by the House and sent to a Conference Committee. This bill should move forward within the next few days.
HB 147
The Omnibus Insurance Bill passed the Legislature on May 15th. This bill makes changes to certain insurance licensing provisions and brings Alaska's law into greater conformity with other state's insurance laws. It also makes minor changes to the statutes governing insurers who do not file to operate in Alaska, in order to make their reporting easier.
The bill provides authorization for insurer deposits to be paid to the state insurance guaranty fund. It also gives the Division of Insurance in the Department of Commerce, Community , and Economic Development the authority to regulate Health Discount plans, and clarifies the state's regulation of guaranteed auto protection products and motor vehicle service contracts.
SB 73
The bill authorizing a lease-purchase to build a $24 million State Virology Laboratory in Fairbanks was amended on the House floor to include a provision allowing for the reimbursement of municipal bonds used for school construction, as well as a provision approving bonding for certain public transportation projects in Anchorage, Fairbanks, the Mat-Su, and Juneau. The Conference Committee has not resolved these issues yet.
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
Rep. Paul Seaton
House District 35
(800) 665-2689
representative_paul_seaton ''@'' legis.state.ak.us # # # |
