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KEVIN F. McCOY MARY C. GEDDES 1113 N Street Anchorage, Alaska 99501 l<[email protected] (907) 360-2832 COPY <Original Received JUL 1 8 2019 Clerk of the Trial Courts IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE KEVIN F. McCOY and MARY C. GEDDES, Plaintiffs, vs. MICHAEL J. DUNLEAVY, Governor of the State of Alaska, Defendant. ) ) ) ) ) ) Case No. 3AN-19-08301 Cl ) ) ) ) REPLY TO DEFENDANT'S OPPOSITION TO PLAINTIFFS' MOTION FOR EXPEDITED CONSIDERATION In this pleading, Plaintiffs jointly respond to the Defendant's opposition to their Motion for Expedited Consideration. This matter should proceed on an expedited basis because: Contrary to Defendant Dunleavy's claim, Plaintiffs· as citizen-taxpayers - and their fellow citizens of Alaska- have suffered irreparable harm stemming from the Legislature's lost opportunity to timely reconsider, as a single body, the Defendant's 182 line-item vetoes at a lawfully convened Special Session. (Appendix D, the record of the Alaska Legislature, 31st Legislature (2019-2020) Bill History/Action for Legislature for CCS CCHB 39 titled "Approp.: Operating Budget/Loans/Funds," showing "VETO Reply to Defendant's Opposition to Plaintiffs' Motion for Expedited Consideration Kevin F. McCoy & Mary C. Geddes v. Michael J. Dunleavy, Governor NO. 3AN-19-08301 Cl Page 1 of 4

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Page 1: Reply to Defendant's Opposition to Plaintiffs' Motion for

KEVIN F. McCOY MARY C. GEDDES 1113 N Street Anchorage, Alaska 99501 l<[email protected] (907) 360-2832

COPY <Original Received

JUL 1 8 2019

Clerk of the Trial Courts

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE

KEVIN F. McCOY and MARY C. GEDDES,

Plaintiffs, vs.

MICHAEL J. DUNLEAVY, Governor of the State of Alaska,

Defendant.

) ) ) ) ) ) Case No. 3AN-19-08301 Cl ) ) ) )

~~~~~~~~~~~·)

REPLY TO DEFENDANT'S OPPOSITION TO PLAINTIFFS' MOTION FOR EXPEDITED CONSIDERATION

In this pleading, Plaintiffs jointly respond to the Defendant's opposition to

their Motion for Expedited Consideration. This matter should proceed on an

expedited basis because:

• Contrary to Defendant Dunleavy's claim, Plaintiffs· as citizen-taxpayers -

and their fellow citizens of Alaska- have suffered irreparable harm

stemming from the Legislature's lost opportunity to timely reconsider, as a

single body, the Defendant's 182 line-item vetoes at a lawfully convened

Special Session. (Appendix D, the record of the Alaska Legislature, 31st

Legislature (2019-2020) Bill History/Action for Legislature for CCS CCHB

39 titled "Approp.: Operating Budget/Loans/Funds," showing "VETO

Reply to Defendant's Opposition to Plaintiffs' Motion for Expedited Consideration Kevin F. McCoy & Mary C. Geddes v. Michael J. Dunleavy, Governor NO. 3AN-19-08301 Cl

Page 1 of 4

Page 2: Reply to Defendant's Opposition to Plaintiffs' Motion for

SUSTAINED," page 1, and entry for "7/10/2019 at 2019 "GOVERNOR

LINE ITEM VETOES SUSTAINED Y37 N1 E4 A18"). The Governor's

unlawful Executive Proclamation caused at least 18 members of the

Legislature to go MIA and deprived the Plaintiffs and the citizens of Alaska

of their attendance, any engagement in the collective deliberative

legislative process, and ultimately their vote of record on re~onsideration.

• There is nothing in the Governor's Supplemental Executive Proclamation

of July 17, 2019, (Appendix E) that redresses the Legislature's lost

opportunity to consider the vetoes to the operating budget as a body, in

accordance with Article II, section 16, of the Alaska Constitution.

• The issues presented in the lawsuit are noncomplex because they involve

only a single state constitutional question, i.e. whether the Governor's

Executive Proclamation calling the Legislature to a Second Special

Session in Wasilla violate the separation of powers doctrine

notwithstanding the language in AS 24.05.1 OO(b) allowing the Governor to

"designate" the location of a special session. If the Proclamation is

unconstitutional, the court would necessarily find that the Second Special

Session was unlawfully convened. This ruling would invalidate the

Governor's 182 line-items vetoes inasmuch as the constitutionally-

required period allowed for the Legislature's consideration under Article II,

sec. 16, of the vetoes is limited to the first five days within the next

lawfully-convened regular of special session of the Legislature;

Reply to Defendant's Opposition to Plaintiffs' Motion for Expedited Consideration Kevin F. McCoy & Mary C. Geddes v. Michael J. Dunleavy, Governor NO. 3AN-19-08301 Cl

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• The constitutional question has extraordinary public importance because

they concern the Governor's 182 budget line-item vetoe3 amounting to

cuts on the order of $444 million and affecting a broad spectrum of state

seNices and contracts for services;

• The parties have already explored a pretrial resolution and have

determined that no agreement is forthcoming;

• The Defendant's lawyers in the Department of Law should be ready to

fully litigate this question on an expedited basis because:

o The legality of AS 24.05.100(b), amended in 1982 by CS HB 184,

was first reviewed by the Department of Law 27 years ago during

the Twelfth Legislative Session (see Appendix A, noting the

attendance of Assistant Attorney General Peter Froehlich at a 1982

House Judiciary Committee hearing chaired by Rep. Barnes and

his representation that the Department of Law takes no position on

HB 184)

o Following the Governor's Executive Proclamation on June 13, the

Attorney General Kevin Clarkson, the Governor's lawyer, defended

the legality of the Wasilla venue (Appendix B (Associated Press,

June 26, 2019, "Dueling legal analyses raise questions about

special session"; KTUU June 26, 2019, "Alaska AG: Governor can

sue legislators who don't appear at Wasilla special session";

Anchorage Daily News, June 26 and 27, 2019 "Dispute over special

session location escalates")) indicating that the Governor's lawyers

Reply to Defendant's Opposition to Plaintiffs' Motion for Expedited Consideration Kevin F. McCoy & Mary C. Geddes v. Michael J. Dunleavy, Governor NO. 3AN-19-08301 Cl

Page 3of4

Page 4: Reply to Defendant's Opposition to Plaintiffs' Motion for

had fully researched the issue by the time of Clarkson's statements,

if not before;

o The Defendant through his attorneys has sufficient resources to

expeditiously litigate this issue.

• Plaintiffs ask the court pursuant to Alaska Evidence Rule 201 to take

judicial notice of the continuing barrage of media reports as to the

immediate and imminent impacts of the Governor's line-item vetoes. See

e.g. Anchorage Daily News, July 18, 2019 (Elizabeth Earl, Alaska Journal

of Commerce, "Providers await impacts of Medicaid cuts; dental services

axed") (Appendix C)

For all these reasons, Plaintiffs propose the following expedited schedule: the

Defendant to file any Opposition to the Motion for Preliminary Injunction by the

close of business, Friday, July 19, 2019; any Reply by the Plaintiffs would be due

by noon, Monday, July 22, 2019; and, that the Matter be calendared for oral

argument on Tuesday, July 23, 2019.

Dated at Anchorage, Alaska this 181h day of July, 2019.

~ ~Ul~ KEiN( McCOY / Pro Se Plaintiff (Alaska Bar# 7705042 Retired)

-~ c_JhL ~.G6!'JDES Pro Se Plaintiff (Alaska Bar# 8511157 Inactive)

Reply to Defendant's Opposition to Plaintiffs' Motion for Expedited Consideration Kevin F. McCoy & Mary C. Geddes v. Michael J. Dunleavy, Governor NO. 3AN-19-08301CI

Page 4 of 4

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Info bases

31st Legislature(2019-2020)

Info bases

Contents

Next

Previous

Next

Prev. Hit

Members Present: Chairman Barnes Rep. Anderson Rep. Freeman Rep. Phillips

Members Absent: Rep. Buchholdt Rep. O'Connell Rep. Meekins

~HB~ »184~ Relating to an advisory note on convening special sessions anywhere in Alaska.

CSHB 52 Amending Alaska Transportation Commission Statute.

WITNESS:

Peter Froelich Assistant Attorney General

Home Department of Law

to Query

Position Statement: He stated that the Department didn't really have How a position on WfB44&1itl84114.

»HB~ »184~ Previously brought up in committee.

CSHB 52 Previously heard in committee.

82 HJUD 82/02/17 1315 ?

http ://www. legis .state.a k.us/basis/fo I io.as p

7/17/19, 2:18 PM

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Info bases

3 lst Legislature(2019-2020)

Info bases

Contents WITNESS:

Next

NONE Position Statement: NONE

Previous ~HB1<1 *1844-4 Previously brought up in committee.

HB 438 Previously brought up in committee.

Query

/.,.. ..... - .... - ........... 4 __ _

i Tape#l4 ) ~ ......................... " ....... ,,..,,..

Next " Recording

Hit

Prev. Hit

Home

How

to Query

' Number 0617 The meeting of the House Judiciary Committee was called to order by Chairman Barnes at I: 15 p.m. Bill Cook recommended that ~HB,~0~184~ was a statute, not an advisory vote -- so it had been drafted by Legal Services. Adds a subsection (b) that says a special session can be held anywhere. If it is called by the Governor, he designates the place. If the Legislature calls the special session, they designate the place. Rep. Phillips made a motion to pass CSHB 184 out of committee. No Objection. So ordered.

Number 0751 Rep. Meekins arrived 1:50. Rep. Phillips moved the 4 conceptual motions on HB 438 made the previous day by Rep. Meekins. Cook went over 4 motions. Rep. Meekins made a motion to

Standing and Special Committees 82 HJUD 82/03/04 1315

., ...

http ://www. leg is .state.a k.us/basis/folio.as p

7/17/19, 2:27 PM

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i

Dueling legal analyses raise questions about special-<;,sion - SFGate 7/18/19, 10:25 AM

SfGATE https://www.sfgate.com/news/article/Memo-questions-Dunleavy-authority-to-call-Wasilla-14051985.php

Dueling legal analyses raise questions about special . session Becky Bohrer, Associated Press Updated 6:10 pm PDT, Wednesday, June 26, 2019

JUNEAU, Alaska (AP) -Alaska's attorney general said Wednesday that Republican Gov. Mike

Dunleavy has the authority to call a special session where he wishes and the option of seeking a court

order to compel rebellious lawinakers to convene in his chosen location of Wasilla.

THE DAILY DAILY NEWSLETTER SFGATE's top stories from

across the Bay Area.

You agree to our Terms of Use. Your information will be used as described in our Privacy Notice.

How far Dunleavy plans to push the issue - his latest

dustup with lawmakers - remains to be seen.

L--,~~~~~~~-~~~~~~~~~

Attorney General Kevin Clarkson's position is at odds

vvith that of the Legislature's top legal adviser, Megan

Wallace, who in a m.e1no said a governor does not

have the constitutional power to compel the

Legislature to meet in a location other than the

capital of Juneau. Clarkson told reporters the writers

of the state's constitution, if they wished, could have

limited where a special session could be held but

didn't.

sion and for lawmakers to call them.selves

asilla, where he's from. But House Speaker

eek said the Legislature instead plans to

Clarkson said Dunleavy asked him for his legal options. Clarkson said he could seek a court order

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Page 8: Reply to Defendant's Opposition to Plaintiffs' Motion for

Dueling legal analyses raise questions about specia'...--...,sion - SFGate 7 /18/19, 10:25 AM

-compelling lawmakers not present in Wasilla to go there and have Alaska State Troopers roundup

those who defy aiiy such court order. "I have no idea whether he'll choose that or not," Clarkson said.

Dunleavy also possibly could join a lawsuit filed by a citizen or simply let lawmakers meet where they

want, Clarkson said.

Dunleavy spokes1nan Matt Shuckerow said Dunleavy would be able to address those issues later.

A 1982 state law says a special session may be held at any location in Alaska and says if a governor

calls one for a location other than the capital that should be designated in the governor's special

session proclamation. Dunleavy did that.

Wallace, in response to a request for analysis from Edgmon, writes that in her review, it seems evident

the Legislature at that time "did not conte1nplate a scenario, like here, where the governor would

designate a location in a special session proclamation absent an agreement with the legislature."

Clarkson said it's "remarkable" for the Legislature to declare a law that it passed in 1982 is

unconstitutional.

Wallace's memo notes no other governor has called a special session for somewhere other than

Juneau and special sessions held outside Juneau, in Anchorage, were initiated by the Legislature,

which can call itself into special session if it can muster the votes.

The state constitution lists the capital as Juneau, and Wallace writes that delegates intended that

capital would describe the place where legislative sessions were held.

Clarkson acknowledged the reference to Juneau as the capital. But he said "there's a world of

difference between that and saying that that's the only place they can meet."

Wallace said the current situation raises separation-of-powers issues. The Legislature's_ power to

provide for meeting areas, staff, security and other services "is essential to its functioning as an

independent branch of government. To preserve the legislature's independence, a court may

ultimately find it a violation of the separation of powers doctrine to give the governor the power to

https://www.sfgate.com/news/articl e/M emo-questions-Dunleavy-autho rity-to-cal 1-Wasil Ja-1405198 5. ph p Page 2 of 3

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Dueling legal analyses raise questions about special~ion - SFGate 7/18/19, 10:25 AM

establish the location of a legislative session."

Edgmon and Giessel said the Legislature was one short of ijie votes needed to call its own special

session. But they said a n1ajority of legislators in both chambers consider it the Legislature's right to

detennine the best location and venue to conduct business.

Some legislators cited concerns with security and the logistics of a special session in Wasilla.

Rep. Colleen Sullivan-Leonard of Wasilla, a ininority Republican, said discussions with legislative

leadership have been lacking and that the first she heard of plans to ineet in Juneau and Anchorage

was in a news release.

"People are inaking decisions without really sitting down ... to have a discussion on, 'Where will we be

on July 8?"' she said. "Certainly our intent, the Mat-Su delegation's intent, is to be in Wasilla, where

the governor has deemed that the special session should be held." The delegation includes lawn1akers

from Wasilla and surrounding areas.

Lawn1akers were unable to complete their work during a 121-day regular session and a special session

in Juneau.

This isn't the first dustup between Dunleavy and lawmakers. The Legislative Council has agreed to

prepare for a lawsuit in a disagreement with the ad111inistration over school funding.

© 2019 Hearst Communications, Inc.

HILARST

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Alaska AG: Governor can sue legislators who don't ?...-.....ar at Wasilla special session

Alaska AG: Governor can sue legislators who don't appear at Wasilla special session

Gov. Mike Dunleavy speaking in front of Wasilla Middle School on Friday.

By Sean Maguire I Posted: Wed 5:37 PM, Jun 26, 2019 I Updated: Fri 5:28 PM, Jun 28, 2019

ANCHORAGE (KTUU) - Gov. Mike Dunleavy can sue individual legislators who don't come to Wasilla for the second special

session starting on July B, according to Kevin Clarkson, the Alaska Attorney General.

Clarkson said the governor could also get a court order to deploy Alaska State Troopers to "round up" lawmakers who fail to

appear in the Matanuska-Susitna Valley.

The legal debate stems from a decision by legislative leaders to shift the location of the second special session from Wasilla to

Anchorage and Juneau.

A session in Juneau or Anchorage that goes against the governor's wishes may be "invalid;' said Clarkson, meaning any

decisions lawmakers make may not have the force of law.

The Alaska Attorney General told reporters Wednesday that the governor is legally entitled to call a special session in any

location that he chooses. However, that analysis clashes with legal advice prepared by the Legislature's attorneys.

The Legislature's attorneys wrote Tuesday that the governor may be overstepping his constitutional role by deciding the location of a special session away from the capital.

"If the doctrine of separation of powers generally prevents the courts from interfering in matters of legislative procedure, then it

should certainly prevent the governor from interfering in matters of legislative procedure;· reads the legal advice.

The clash of legal opinions may be settled in a courtroom. Clarkson explained the governor is unable to sue the Legislature but

he could sue individual lawmakers that don't come to Wasilla.

Under the Legislature's uniform rules, the Senate President and House Speaker can call on the Department of Public Safety to

help bring any missing legislator back to a session.

Copyright 2019 KTUU. All rights reserved.

Get the latest updates from ktuu.com delivered to your browser

SUBSCRIBE TO PUSH NOTIFICATIONS

https://www.ktuu.com/content/news/-Alaska-AG-Governor-could-sue-legislators-who-dont-appear-at-Wasilla-special-session-511870382.html

a c~~t.)

7/18/19, 10:34 AM

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Alaska AG: Governor can sue legislators who don't a.~r at Wasilla special session . 7/18/19, 10:34 AM

Alaska over Medicaid rate cuts READ MORE »

Show Comments

Comments are posted from viewers like you and do not always reflect the views of this station.

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Dispute over special session location escalates - Anc-~ge Daily News

ANCHORAGE DAILY NEWS Alaska Legislature

Dispute over special session location escalates , .. Author: James Brooks 0 Updated: June 27 ti Published June 26

111is June 14, 2019, photo shows a Wasilla sign on the outskirts of Wasilla, Alaska. (AP Photo/Mark Thiessen)

JUNEAU - A dispute over the location of the Alaska Legislature's second special session of 2019 continued to escalate Wednesday with dueling legal opinions, the threat of court action, and pledges by some lawmakers to meet in Wasilla despite plans by Legislative leaders.

.~ 7/18/19, 10:53 AM

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Pl (Cn>f.)

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Dispute over special session location escalates - An.~age Daily News

While Gov. Mike Dunleavy has issued a proclamation saying that lawmakers shall meet July 8 in Wasilla to discuss this year's Permanent Fund dividend, the leaders of the Alaska Legislature said earlier this week that they will instead meet in Juneau and Anchorage, defying a state lavv that allows the governor to select the location of a special session.

If lawmakers cannot s~ttle their disagreement over the special session, they will be unable to finish work on the state's capital budget, endangering hundreds of millions of dollars for road construction projects statewide. In addition, the amount of this year's dividend is unresolved and still awaits legislative approval. The. capital budget must be finished by the ·end of July to avoid consequences, and the dividend amount must be set by mid-August to avoid delays in this year's payment.

Laying out the legal arguments

In a message Monday, Speaker of the House Bryce Edgmon, I-Dillingham, and Senate President Cathy Giessel, R-Anchorage, said they would convene the Legislature's special session in Juneau, with financial meetings in Anchorage, because of cost and access concerns. State law allows the governor to specify a location for any special session he calls, but Edgmon and Giessel said that law is unconstitutional.

In a memo dated June 25, Legislative Legal Services director Megan Wallace outlined the Legislature's legal arguments. There are three reasons the Legislature, not the governor, can determine the location of a special session, Wallace wrote:

-- The Constitution does not grant the governor the power to select a location;

-- The Constitution states that Juneau is the capital, and therefore the Legislature should meet there unless lawma~<:ers decide otherwise;

-- The separation of powers doctrine, plus previous rulings by the Alaska Supreme Court, means the Legislature does not have to comply with laws that affect the rule-making power of the Legislature.

,,,......,_,

https://www.adn.com/politics/alaska-legislature/2019/06/26/alaska-leg ... atures-top-lawyer-says-lawmakers-can-decide-special-session-location/

7/18/19, 10:53 AM

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Dispute over special session location escalates - An~ge Daily News

"I think there's an argument that that law goes beyond the scope of what's allowed in the constitutional description," Rep. Andy Josephson, D-Anchorage, said Tuesday.

Josephson is an attorney and, after reading the memo, said of the location law, ''you could have a heck of an oral argument in a court deciding the legality of it."

In 1982, lawmakers approved legislation that says in part, "The governor shall designate the location (of the special session) in the proclamation."

In his June 13 proclamation, Dunleavy chose Wasilla.

But Wallace contends that the 1982 law never waived the Legislature's authority to pick its own location.

"It seems evident to me ... the Legislature did not contemplate a scenario, like here, where the governor would designate a location in a special session proclamation absent an agreement with the Legislature," she wrote.

Attorney general disagrees

In an interview with reporters Wednesday afternoon, Alaska Attorney General Kevin Clarkson said, "the law in Alaska is clear, as far as I'm concerned."

He has advised the governor that "he can designate where that special session can be held."

The session could be held in Tok or alongside the highway, Clarkson said.

The state constitution prohibits the governor from filing suit against the Legislature, and with that in mind, Clarkson said he has advised the governor that there are three options if lawmakers continue to reject the governor's proclamation:

http s: //www. ad n .com/ politics/ a I as ka-Je g is I a tu re /2 01 9 / O 6 /2 6 /a I as ka-1 e g ... atu res-to p-1 aw ye r- say s-1 awm a ke rs-ca n-d ec id e-s pe c i a 1-s es s i o n-1 oca ti on/

7/18/19, 10:53 AM

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Dispute over special session location escalates - A~age Daily News

-- The governor could allow them to meet in Juneau and Anchorage;

-- He could wait to see if a private citizen files suit against the Legislature;

-- or the governor could file a suit against individual lawmakers under Article III, Section 16 of the state constitution.

That section says the governor may "enforce compliance with any constitutional or legislative mandate." While that section specifically prohibits "any action or proceeding against the Legislature," Clarkson

said he believes it does not prohibit lawsuits against individual lawmakers.

Under that scenario, the governor could seek a court order requiring lawmakers to attend a Wasilla special session. If lawmakers still decline, he could then order state troopers to detain missing lawmakers and force them to attend.

Clarkson said the final decision will be up to the governor, who was meeting with President Donald Trump during the interview.

Dunleavy press secretary Matt Shuckerow said the governor will make a statement "in the near future."

Some in Wasilla, some in Juneau

Though the dispute remains unresolved, some lawmakers have already pledged to avoid Juneau in favor of Wasilla when the special session begins July 8.

"I'd be very surprised if anyone from the Mat-Su delegation wasn't there," said Rep. David Eastman, R-Wasilla, about meeting in Wasilla.

{Why not Wasilla for a second special session? Legislators cite cost, accessibility]

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7/18/19, 10:53 AM

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Dispute over special session location escalates - Anchorage Daily News ~

The 15-member Republican House minority has consistently supported Dunleavy's position on this year's Permanent Fund dividend - the sole item on the special session agenda - but House Minority Leader Lance Pruitt, R-Anchorage, said Wednesday that his group doesn't yet have a unified position on missing Juneau in favor of Wasilla.

"I'm inclined at this point to more likely be out in Wasilla," he said.

"The only thing that would prevent me from not being up there personally is to whether or not I need to make sure they don't pull some kind of crazy stunt down in Juneau," he said. "I don't know what that stunt could be."

Some members of the Alaska Senate are also expected to be in Wasilla on the 8th. Sen. Shelley Hughes, R-Palmer and co-chairwoman of the Legislature's nine-member Mat-Su delegation, said she will be. Senate Minority Leader Mia Costello, R-Anchorage, has sided with the governor on the dividend issue but said she's still "thinking it over" when asked where she will be. Sen. Peter Micciche, R-Soldotna, also supports the governor's position on the dividend but said he likely will be in Juneau even though he prefers Wasilla.

The majority of lawmakers will be in Juneau on the 8th, barring a change in opinion by the House and Senate leadership, and those in attendance at Wasilla will not have a quorum - the minimum number of members needed to call a session into order.

Regardless of the outcome, some lawmakers believe the issue is a distraction from the issues the session is intended to address.

Sen. Bill Wielechowski, D-Anchorage, said in a Tuesday interview that he previously supported moving the special session to Anchorage or Juneau.

He believes the Legislature would win any legal challenge regarding the location law, but he also said it's an argument better served for another time. He believes the Legislature should be focusing on the Permanent Fund dividend and the unfinished capital budget.

"I just want to get our work done. I think the public's getting really

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Providers await impacts of Medicaid cuts; dental se~s axed - Anchorage Daily News

ANCHORAGE DAILY NEWS Alaska Legislature

··""""""'

Providers await impacts of Medicaid cuts; dental services axed ' Author: Elizabeth Earl, Alaska Journal of Commerce 0 Updated: 1 hour ago ti! Published 4 hours ago

Gov. Mike Dunleavy talks and answers questions about his recent budget vetoes at the start of a meeting with members of his cabinet in Anchorage on July 15, 2019. (Marc Lester I ADN)

Alaska Gov. Mike. Dunleavy's cuts to the state Medicaid budget have providers holding their breath as they wait to see the impacts.

https://www.adn.com/politics/a laska-leg is la tu re/2019 /07 /18/p rovi ders-await-im pacts-of-med icaid-cuts-d ental-services-axed/

FtPPE.NDJK C.

7/18/19, 11:09 AM

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Providers await impacts of Medicaid cuts; dental sepd~es axed - Anchorage Daily News

Dunleavy vetoed about $58 million of general fund support for Medicaid :programs from the Legislature's enacted budget on June 28. The

Legislature, divided between special sessions in Wasilla and Juneau, failed to override the vetoes, and so the cut stands for now.

Because Medicaid is a federally matched program, the dollars the state cuts lead to forfeited federal dollars as well. The $58 million general fund cut is compounded by those federal dollars, meaning at least $77 million less in total.

Though there's no immediate impact for hospitals, one of their concerns is for the end of the next fiscal year, when money starts running out to reimburse providers. The state suspended payments for about two weeks in June due to a Medicaid funding shortfall, forcing hospitals to wait until the turnover of the fiscal year to be paid.

While hospitals are again being paid, there's the possibility that if funding is cut, the suspension could go on for longer next year, said Jeannie Monk, senior vice president of the Alaska State Hospital and Nursing Home Association.

"Right now, in terms of hospitals and Medicaid, everybody's OK," she said.

One Medicaid service would be eliminated entirely if the vetoes stand: adult preventive dental medical coverage. Up until this year, Medicaid recipients were able to access preventive dental services such as cleanings and X-rays. Dunleavy vetoed $27 million supporting the program, which would stop the preventive program, though emergency situations would still be covered, according to the Alaska Department of Health and Social Services.

Providers say it's more than a luxury. During the regular session, legislators and providers argued for the retention of the program, saying it was an essential part of preventive health and provided opportunities for people to encounter the medical system who might not have otherwise gone in for a doctor's appointment.

Without the benefit, there's a concern that those patients will just wind

https://www.adn.com/politics/alaska-leg is lature/2019 /07 /18 /provi ders-await-im pacts-of-medica id-cuts-dental-services-axed/

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Providers await impacts of Medicaid cuts; dental se.~s axed - Anchorage Daily News

up in the emergency rooms with abscesses and acute dental conditions, Monk said. The same is true of the homeless population, with the vetoes applying to social services that help run homeless shelters.

{Dunleavy budget veto cuts services to the homeless statewide, hitting Anchorage hardest]

For patients at federally qualified health centers, that means paying a sliding scale fee. Though that fee reduces the patient's cost, it's still about 25% of the total charge, said Jon Zasada, the policy integration director for the Alaska Primary Care Association.

"I think a lot of folks know that once you start doing the cleaning, fillings, and other procedures, it becomes a lot more expensive," he said. "Let's say a cleaning or a tooth pulling ... a patient could easily have a bill that at full cost is multiple thousands of dollars, and then they would be responsible for $1,000, which they generally are not able to pay."

Other states who have cut their preventive dental services for Medicaid have studied and tracked increases in emergency room visits for dental reasons, Zasada said. Though that isn't something Alaska has done in the past, it's something the APCA will be looking into, in part because of the inefficiency of treating those problems in an expensive place like an emergency room, he said.

"Certainly an abscess or an infection, when treated in an emergency room, is far more expensive than when it might be under control because someone has access to preventative care," he said.

At hospitals, those patients would be eligible for financial assistance or charity care. Hospitals generally have to eat that cost later. That's not the case for federally qualified health centers; they often have grants to help cover that shortfall from the sliding scale fee. But with more patients not able to pay for services, they may have to rely more on those backup funding sources.

For the Anchorage Neighborhood Health Center, that means probably looking for more grants to support their services and relying on patients

who come with private insurance, said Tammy Green, the CEO of

https://www.adn.com/politics/alaska-legislature/2019/07/18/providers-await-impacts-of-medicaid-cuts-dental-services-axed/

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Providers await impacts of Medicaid cuts; dental sept.U<,es axed - Anchorage Daily News

Anchorage Neighborhood Health Center.

"We have figured out that we have a fair amount of our dental patients that are on Medicaid with our dental benefit," she said. "We're going to have to figure out where else to shoulder that in our business."

The Anchorage Neighborhood Health Center has integrated medical, dental and behavioral care, and patients who come in for dental services are frequently referred for medical services and vice versa.

Without the dental benefit, patients may not be as likely to receive care in the first place, which may lead to more serious conditions down the road and may hamper their ability to get jobs. Green said a number of the patients who have had dental services have written to the clinics and said oral care played a role in their ability to be employable by correcting their speech or smiles.

The other problem is that the caseload may go up as other providers in the area stop taking Medicaid patients, she said.

"I think the other piece about these cuts is that in our community, the dentists will no longer be able to see the Medicaid patients and we are going to be deluged, but more import~n.tly, I think the hospital emergency rooms are going to end up (seeing these patients)," she said.

The House Finance Committee, meeting in Anchorage July 15, introduced House Bill 2001 to reinstate many of the cuts from the line­item vetoes, including Medicaid, and using remaining state funds to pay the Permanent Fund dividend. Zasada said the APCA hadn't formally endorsed the bill, but "anything that would reinstate funding for broad health care services amongst all of the other things, we are supportive of."

During a press conference Monday, Dunleavy said his administration hadn't had time to review the House's new bill yet but planned to continue discussions with legislators later in the day.

About this

Elizabeth Earl

https://www.adn.com/po litics/alaska-leg is la tu re/2019 /07 /18/provide rs-await-impacts-of-med icaid-cuts-denta I-services-axed/

7/18/19, 11:10 AM

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31st Legislature(2019-2020)

BILL HISTORY/ ACTION FOR LEGISLATURE

BILL HB 39 CCS SSHB 39

CURRENT STATUS VETO SUSTAINED

BILL

VERSION

STATUS DATE 07 /1 2/2019 SHORT TITLE AP PROP: OPERATING

BUDGET/LOANS/FUNDS

SPONSOR(S)

TITLE

HOUSE RULES BY REQUEST OF THE GOVERNOR

"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."

Bill Number: I J

=~ Actions l

2/20/2019

2/20/2019

2/21 /2019

160 (H) READ THE FIRST TIME - REFERRALS

160 (H) GOVERNOR'S TRANSMITTAL LETTER

200 (H) READ THE FIRST TIME - REFERRALS

£-----···---------·-·--·---~-··--·-·-J l Display Committee Actions . L,: ____ .... , __ ......... _____ _

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Alaska State Legislature

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(H) GOVERNOR'S TRANSMITTAL LETTER

(H) DP: KNOPP

(H) AM: JOHNSTON, TILTON, LEBON, JOSEPHSON, ORTIZ, SULLIVAN-LEONARD,

WILSON, FOSTER

(H) READ THE SECOND TIME

(H) AM NO 1 FAILED Y12 N26 E2

(H) AM NO 7 NOT OFFERED

(H) AM NO 12 OFFERED AND WITHDRAWN

(H) AM NO 8 NOT OFFERED

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4/9/2019 523 (H) AM NO 17 FAILED Y11 N28 E1

4/9/2019 525 (H) RESCIND ACTION (ADP)AM 14 UC

4/9/2019 525 (H) AM NO 22 ADOPTED UC

4/9/2019 525 (H} AM NO 19 MOVED TO BOTTOM

4/9/2019 525 (H} AM NO 21 MOVED TO BOTTOM

4/9/2019 526 (H} AM NO 24 FAILED Y15 N24 E1

4/9/2019 527 (H) AM NO 26 FAILED Y8 N31 E1

4/9/2019 529 (H) AM NO 28 NOT OFFERED

4/9/2019 529 (H) AM NO 30 OFFERED AND RULED OUT OF ORDER

4/9/2019 530 (H) AM NO 31 RULED OUT OF ORDER

4/9/2019 530 (H) AM NO 34 RULED OUT OF ORDER

4/9/2019 530 (H) AM NO 32 MOVED TO BOTTOM

4/9/2019 531 (H) ADJOURNED TO 4/10 CAL

4/10/2019 541 (H) READ THE THIRD TIME CSSSHB 39(FIN) AM

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4/10/2019 542 (H) AM NO 35 MOVED TO BOTTOM

4/10/2019 544 (H) AM NO 37 FAILED Y12 N27 E1

4/10/2019 546 (H) AM NO 39 ADOPTED UC

4/10/2019 546 (H) AM NO 36 ADOPTED Y32 N7 E1

4/10/2019 547 (H) AM NO 40 MOVED TO BOTTqM

4/10/2019 549 (H) BEFORE HOUSE IN SECOND READING

4/10/2019 551 (H) AM NO 43 FAILED Y12 N27 E1

4/10/2019 552 (H) AM NO 45 MOVED TO BOTTOM

4/10/2019 552 (H) AM NO 47 FAILED Y15 N24 E1

4/10/2019 554 (H) AM NO 49 FAILED Y13 N26 E1

4/10/2019 555 (H) AM NO 51 ADOPTED Y24 N15 E1

4/10/2019 556 (H) AM NO 53 MOVED TO BOTTOM

4/10/2019 556 (H) AM NO 54 FAILED Y16 N23 E1

4/10/2019 559 (H) AM NO 57 FAILED Y19 N20 E1

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4/10/2019 562 (H) AM NO 61 MOVED TO BOTTOM

4/10/2019 562 (H) AM 1 TO AM 62 ADOPTED UC

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4/10/2019 565 (H) AM 1 TO AM 64 ADOPTED UC

4/10/2019 565 (H) AM NO 65 FAILED YB N30 E2

4/10/2019 567 (H) BEFORE HOUSE IN SECOND READING

4/10/2019 568 (H) AM NO 67 MOVED TO BOTTOM

4/10/2019 568 (H) AM NO 69 ADOPTED Y22 N15 E3

4/10/2019 570 (H) AM 1 TO AM 32 ADOPTED UC

4/10/2019 571 (H) AM NO 40 OFFERED

4/10/2019 572 (H) AM NO 40 AS AM ADOPTED Y26 N11 E3

4/10/2019 573 (H) AUTOMATICALLY IN THIRD READING

4/11 /2019 587 (H) RULED IN THIRD READING APPEALED

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4/11 /2019 588 (H) RETURN TO SECOND MOTION

4/11/2019 588 (H) AMS NO 10, 11, 15, 18, 19, 20, 21, 27, 35, 45, 46, 48, 50, 53, 55, 60, 61, AND

4/11 /2019 589 (H) PASSED Y24 N14 E2

4/11 /2019 590 (H) ... CHANGES TITLE OF LEGISLATION

4/11 /2019 593 (H) EASTMAN NOTICE OF RECONSIDERATION

4/11 /2019 594 (H) PASSED ON RECONSIDERATION Y24 N14 E2

4/11/2019 595 (H) ... CHANGES TITLE OF LEGISLATION

4/11/2019 596 (H) TRANSMITTED TO (S)

4/12/2019 797 (S) READ THE FIRST TIME- REFERRALS

4/29/2019 939 (S) FIN RPT SCS(FIN) 3DP 3NR 2AM NEW TITLE

4/29/2019 939 (S) DP: STEDMAN, HOFFMAN, BISHOP

4/29/2019 939 (S) AM: WIELECHOWSKI, OLSON

4/30/2019 954 (S) READ THE SECOND TIME

4/30/2019 954 (S) ADVANCED TO THIRD READING 5/1 CALENDAR

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5/1/2019 968 (S) RETURN TO SECOND FOR ALL AMS TODAY UC

5/1/2019 969 (S) AM NO 2 FAILED Y6 N14

5/1/2019 971 (S) AM NO 4 FAILED Y6 N14

5/1/2019 972 (S) AM NO 6 OFFERED AND WITHDRAWN UC

5/1/2019 974 (S) AM NO 8 FAILED Y6 N14

5/1/2019 976 (S) AM NO 10 FAILED Y6 N14

5/1/2019 978 (S) AM NO 12 FAILED Y6 N14

5/1/2019 981 (S) AM NO 14 FAILED Y6 N14

5/1/2019 982 (S) AM NO 16 FAILED Y3 N17

5/1/2019 984 (S) AM NO 18 OFFERED AND WITHDRAWN UC

5/1/2019 984 (S) AM NO 20 OFFERED AND WITHDRAWN UC

5/1/2019 985 (S) AM NO 22 OFFERED AND WITHDRAWN UC .

5/1/2019 986 (S) AM NO 24 OFFERED AND WITHDRAWN UC

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5/1 /2019 988 (S) EFFECTIVE DATE(S) SAME AS PASSAGE

5/1/2019 990 (S) RECON TAKEN UP SAME DAY UC

5/1/2019 990 (S) EFFECTIVE DATE(S) SAME AS PASSAGE

5/1/2019 994 (S) VERSION: SCS CSSSHB 39(FIN) AMS

5/3/2019 796 (H) CONCUR MESSAGE TAKEN UP

5/3/2019 797 (H) CONFERENCE COMMITTEE APPOINTED

5/6/2019 1033 (S) FAILED RECEDE (S) AMY- N19 E1

5/6/2019 1033 (S) STEDMAN (CHAIR), VON IMHOF, OLSON

5/16/2019 1216 (S) FIRST SPECIAL SESSION BILL

5/15/2019 1079 (H) FIRST SPECIAL SESSION BILL

6/9/2019 1167 (H) CC REPORT: CCS SSHB 39 RECEIVED 6/8/19 9:23 P.M.

6/9/2019 1168 (H) CC RPT ADPTD Y22 N15 E3 CSS SSHB 39

6/9/2019 1302 (S) CC REPORT: CCS SSH B 39 RECEIVED 6/8/19 9:24 PM

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6/10/2019 1308 (S) CC RPT ADPTD Y20 N- CCS SSHB 39

7/8/2019 1217 (H) 4:50 PM 6/13/19 TRANSMITTED TO GOVERNOR

7 /8/2019 1210 (H) SIGNED INTO LAW 6/28 CHAPTER 1 FSSLA 19

7/8/2019 1210 (H) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

7/10/2019 1231 (H) GOVERNOR LINE ITEM VETOES SUSTAINED Y37 N1 E4A18

7/11/2019 1238 (H) MOTION TO RESCIND ACTION TO SUSTAIN WITHDRAWN UC

Similar Subject Match or Exact Subject Match AIRPORTS APPROPRIATIONS

BONDS & BONDING BUDGET BUDGET RESERVE FUND COURTS

ECONOMIC DEVELOPMENT EDUCATION ENERGY EXECUTIVE BRANCH

FEDERAL AID FIRE PROTECTION FUNDS HOUSING LEGISLATURE

LOANS MILITARY PERMANENT FUND PUBLIC CORPORATIONS

PUBLIC EMPLOYEES PUBLIC FINANCE PUBLIC OFFICERS RETIREMENT

REVENUE SALARIES & ALLOWANCES SCHOOLS STATE AID TAXATION

TRANSPORTATION UNIVERSITIES WORKERS COMPENSATION

Bill Number: L __ _,

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<£\f cutive Procfamation 6y

qovemor :Jvlicliae{ J. <J)unfeavy

FIRST SUPPLEMENT AL PROCLAMATION SECOND SPECIAL SESSION

Under the authority of Article II, Section 9, and Article ID, Section 17, Constitution of the State of Alaska and in the public interest, I am amending my June 13, 2019 proclamation calling the Thirty-First Legislature of the State of Alaska into its second special session at I :00 p.m., on July 8, 2019 as follows:

The Legislature shall continue the second special session that began on July 8, 2019, at 1 :00 p.m., under my June 13, 2019 proclamation. From July 17, 2019 forward through the remainder of the constitutional period, the second special session shall continue in the Legislative Chambers in Juneau, Alaska.

The Legislature shall consider, in addition to the subject identified in my June 13, 2019 proclamation, an act authorizing capital appropriations, operating appropriations for certain state programs, repealing appropriations, and making appropriations to capitalize funds.

Dated this lt~ay of July, 2019.

Time: J ~: OCJ., amiJ8

~~ who has also authorized the seal of the State of Alask,?- to be affixed to this proclamation.