Legislature(2001 - 2002)

05/12/2002 10:27 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
CSSB 247(FIN) am(brf sup maj fld)                                                                                               
          "An Act making and amending appropriations and                                                                        
          reappropriations; and providing for an effective                                                                      
          date."                                                                                                                
                                                                                                                                
          HCS CSSB 247(FIN) was REPORTED out of Committee                                                                       
          with a "do pass" recommendation.                                                                                      
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT proposed committee substitute                                                                    
Amendment 22-GS2035\B, 5/11/02. There being NO OBJECTION, it                                                                    
was so ordered.                                                                                                                 
                                                                                                                                
Representative  Croft  referred   to  the  appropriation  for                                                                   
Mosquito Magnet Units on page 7, line 5.                                                                                        
                                                                                                                                
PETER ECKLUND,  STAFF, REPRESENTATIVE WILLIAMS  observed that                                                                   
mosquito magnets are devices used to keep mosquitoes away.                                                                      
                                                                                                                                
Vice-Chair Bunde questioned the  appropriation of $19 million                                                                   
dollars on page 106. Co-Chair  Mulder explained that the item                                                                   
is a  reappropriation and noted  that the unexpended  balance                                                                   
was closer to $250 thousand dollars.                                                                                            
                                                                                                                                
Vice-Chair   Bunde  referred   to  a   $250  million   dollar                                                                   
appropriation   for   little   league  baseball   fields   in                                                                   
Bicentennial Park.  Co-Chair Mulder explained that  the Mayor                                                                   
and public support the appropriation.                                                                                           
                                                                                                                                
Representative  John  Davies  MOVED  to  ADOPT  Amendment  1.                                                                   
Amendment  1 would add  $200 thousand  dollars for  Fairbanks                                                                   
North Star Borough  Road Service Areas in Senate  District O.                                                                   
Co-Chair Mulder OBJECTED.                                                                                                       
                                                                                                                                
Representative John  Davies maintained that the  amendment is                                                                   
a  matter of  equity.  Co-Chair  Williams observed  that  the                                                                   
Senator [from District O] chose not to include the funds.                                                                       
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
1.                                                                                                                              
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to  ADOPT Amendment 2. Amendment 2                                                                   
would add  $900 thousand  dollars for  the Yuut  Elitnaurviat                                                                   
People's Learning Center - Phase  1 Construction [in Bethel].                                                                   
Co-Chair Mulder and Co-Chair Williams OBJECTED.                                                                                 
                                                                                                                                
Representative  Croft spoke in  support of the  amendment and                                                                   
explained that  the amendment  would leverage a  large amount                                                                   
of  federal and  private funds.  The  federal government  and                                                                   
private partners would pick up the operational expense.                                                                         
                                                                                                                                
Co-Chair Williams  spoke in opposition  to the  amendment. He                                                                   
pointed to a lack of state funds.                                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  John  Davies  MOVED  to  ADOPT  Amendment  3.                                                                   
Amendment 3  would add $3.1 million  dollars for the  City of                                                                   
Shishmaref - ErosionControl  (ED 37) as a  FY02 supplemental.                                                                   
Co-Chair Williams OBJECTED.                                                                                                     
                                                                                                                                
Representative  John Davies  stressed  that it  is an  urgent                                                                   
issue and  noted that houses in  Shishmaref have to  be moved                                                                   
away from the  bank because erosion is endangering  lives. He                                                                   
acknowledged that  federal funds are expected  in the future,                                                                   
but emphasized the immediate need to stabilize the problem.                                                                     
                                                                                                                                
Representative Lancaster observed  that the proposed fix is a                                                                   
sand  bag  operation.  He  suggested   that  alternatives  be                                                                   
reviewed.                                                                                                                       
                                                                                                                                
REPRESENTATIVE REGGIE JOULE explained  that the total cost of                                                                   
the project  is over  $4 million  dollars. The community  has                                                                   
over $900 thousand dollars but needs additional funds.                                                                          
                                                                                                                                
Representative  Hudson  questioned  if funding  is  available                                                                   
from the  Denali Commission.  Representative Joule  explained                                                                   
that   a  tank   farm   operation  consolidation   is   being                                                                   
considered.                                                                                                                     
                                                                                                                                
Co-Chair  Williams expressed  the desire  to find  additional                                                                   
funding, but observed that there  was insufficient funding in                                                                   
the capital budget.                                                                                                             
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
3.                                                                                                                              
                                                                                                                                
IN FAVOR: Croft, Davies, Moses, Foster,                                                                                         
OPPOSED:  Bunde,   Harris,   Hudson,   Lancaster,   Whitaker,                                                                   
          Williams, Mulder                                                                                                      
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED to  ADOPT Amendment 4. Amendment 4                                                                   
would  add  $200  thousand  dollars   to  the  Department  of                                                                   
Environmental  Conservation  for   corrosion  monitoring  and                                                                   
control (ED99). Co-Chair Williams OBJECTED.                                                                                     
                                                                                                                                
Representative   Croft  observed   that  the  Department   of                                                                   
Transportation   and  Public   Facilities  manages   pipeline                                                                   
corrosion.  He  explained that  the  amendment  would fund  a                                                                   
small   project   in   the   Department    of   Environmental                                                                   
Conservation  to  study  corrosion   monitoring  and  control                                                                   
technologies  that might  apply  in order  to anticipate  and                                                                   
prevent spills.                                                                                                                 
                                                                                                                                
Co-Chair  Mulder spoke  against  the amendment.  He  observed                                                                   
that oversight  comes from  the Department of  Transportation                                                                   
and Public Facilities.  He emphasized that  corrosion happens                                                                   
over time. He questioned the department's involvement.                                                                          
                                                                                                                                
BOB  STALLMAKER, DIRECTOR  OF  ADMINISTRATION, DEPARTMENT  OF                                                                   
ENVIRONMENTAL   CONSERVATION,    provided   information.   He                                                                   
explained  that   the  Amendment   would  restore   the  Best                                                                   
Management  Practices request  submitted by  the Governor.  A                                                                   
best practice manual  would be created and available  for all                                                                   
companies   in  the   industry.  Prevention   is  under   the                                                                   
jurisdiction    of    the   Department    of    Environmental                                                                   
Conservation.  The project  would  not be  restricted to  the                                                                   
pipeline, but would extend to storage tanks.                                                                                    
                                                                                                                                
Representative  John Davies  noted that  North Slope  Borough                                                                   
infrastructure is aging.                                                                                                        
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
4.                                                                                                                              
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft WITHDREW his OBJECTION Amendment 5.                                                                        
                                                                                                                                
Representative  John  Davies  MOVED  to  ADOPT  Amendment  6.                                                                   
Amendment  6 would  add  $100 thousand  dollars  to the  FY02                                                                   
supplemental operation costs for  the 24-hour State Emergency                                                                   
Coordination  Center  in  the   Department  of  Military  and                                                                   
Veterans Affairs.                                                                                                               
                                                                                                                                
Co-Chair  Mulder OBJECTED.  He  noted that  the total  amount                                                                   
needed  was  $100  thousand dollars  and  that  $50  thousand                                                                   
dollars was already appropriated.                                                                                               
                                                                                                                                
Representative Davies MOVED to  AMEND Amendment 6 by deleting                                                                   
"100" and  inserting "50"  thousand dollars.  There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
6.                                                                                                                              
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to  ADOPT Amendment 7. He observed                                                                   
that there  are no costs  associated with the  amendment. The                                                                   
Amendment  would move  the Veterans'  Home Study  out of  the                                                                   
Legislative Budget  and Audit Committee to the  Department of                                                                   
Administration  and the Welfare  and Medicaid Services  Study                                                                   
to  the Department  of Health  and Social  Services from  the                                                                   
Legislative Council.                                                                                                            
                                                                                                                                
Co-Chair Williams stressed that  the Legislature appropriates                                                                   
the money  and is the appropriate  entity for the  study. Co-                                                                   
Chair Mulder added that the respective  committees would also                                                                   
work with the affected departments.                                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  John  Davies  MOVED  to  ADOPT  Amendment  8.                                                                   
Amendment 8  would appropriate  $340,600 thousand  dollars in                                                                   
order  to fully  fund the  McGraw/Hill contract  of the  High                                                                   
School   Qualifying   Exam.   Co-Chair   Williams   OBJECTED.                                                                   
Representative  John  Davies reiterated  that  the  amendment                                                                   
would fully  fund the  CTB McGraw/Hill  contracts. He  argued                                                                   
that  if the  Legislature expects  the Department  to do  the                                                                   
work than it should fund the contract.                                                                                          
                                                                                                                                
Co-Chair  Mulder indicated  his  intention to  fund the  full                                                                   
amount and emphasized the need to get the right numbers.                                                                        
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
8.                                                                                                                              
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  John  Davies  MOVED  to  ADOPT  Amendment  9.                                                                   
Amendment 9 would  add $445,900 dollars to the  Department of                                                                   
Public   Safety   for   aircraft  and   vessel   repair   and                                                                   
maintenance. Co-Chair Mulder OBJECTED.                                                                                          
                                                                                                                                
Representative John  Davies explained that the  total request                                                                   
was $1,645,900  dollars. The amendment  would fully  fund the                                                                   
request. Without  the additional funding vessel  safety would                                                                   
not be ensured.                                                                                                                 
                                                                                                                                
Co-Chair Mulder  noted that  the request  has been  funded at                                                                   
$1.2  million dollars  and that  he is  comfortable with  the                                                                   
level of funding.                                                                                                               
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
9.                                                                                                                              
                                                                                                                                
Co-Chair Williams added                                                                                                         
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Hudson  MOVED   to  ADOPT  Amendment  10.  He                                                                   
clarified that the  effective date would be  January 1, 2003.                                                                   
Amendment  10  would  add  $3,335,700  dollars  from  federal                                                                   
receipts  to   the  Office  of  the  Governor,   Division  of                                                                   
Governmental Coordination, for  the Coastal Impact Assistance                                                                   
Program.                                                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Croft  MOVED to ADOPT Amendment  11. Amendment                                                                   
11 would add  $115 thousand dollars in general  funds for the                                                                   
Small  Business  Development  Center for  the  University  of                                                                   
Alaska at $1,565,000 dollars. Co-Chair Mulder OBJECTED.                                                                         
                                                                                                                                
Representative Croft  explained that the general  funds would                                                                   
leverage a  substantial amount  of federal funds  ($230,000).                                                                   
He  emphasized  the  role  of  small  business  in  promoting                                                                   
economic development.                                                                                                           
                                                                                                                                
Co-Chair Williams noted that the  current appropriation funds                                                                   
the Governor's request.                                                                                                         
                                                                                                                                
Representative  John  Davies  explained  that  federal  funds                                                                   
would be left on the table without the amendment.                                                                               
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
11.                                                                                                                             
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Bunde MOVED to  ADOPT Amendment 12 on page 13,                                                                   
line  21:  Delete  "Hill LRSAR  Grant"  and  insert  "Chugiak                                                                   
Birchwood  Eagle River  Rural  Road Service  Area Grant".  He                                                                   
explained that the amendment corrects  a typographical error.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT  Amendment 13 on page 24, line                                                                   
28  and  29:   Add  "and  Rehabilitation".  There   being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair  Mulder MOVED  to ADOPT  Amendment 14  on page  106:                                                                   
                                                      th                                                                        
Delete  "planning   and  operation"  and  insert   "40   Ave.                                                                   
intersection   and   road  improvement".   There   being   NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair  Williams MOVED  to  ADOPT [Omnibus]  Amendment  15.                                                                   
Amendment 15 contained a number  of amendments drafted by the                                                                   
Legislative Legal Service.                                                                                                      
                                                                                                                                
Mr. Ecklund  discussed the amendments contained  in Amendment                                                                   
15. He  noted that  Amendment Amendment  22-GS2035\B.2  was a                                                                   
late reappropriation  request from Representative  Lancaster.                                                                   
The amendment would  change the scope of the  project without                                                                   
an addition of funds.                                                                                                           
                                                                                                                                
DENNY DEWITT,  STAFF, REPRESENTATIVE  ELDON MULDER  discussed                                                                   
additional  amendments   contained  in  the   packet  labeled                                                                   
Amendment  15.  He  explained  that  Amendment  22-LS800\C.23                                                                   
provides  $10 million  dollars  for deferred  maintenance  of                                                                   
state facilities and is in the supplemental of portion.                                                                         
                                                                                                                                
Mr.  Dewitt  explained  that   Amendment  22-LS800\C.24  adds                                                                   
additional funds  to the Alaska  Debt Retirement  Fund, which                                                                   
would be in  the supplemental budget and carried  forward. As                                                                   
a  result  of  HB  528 it  is  necessary  to  add  funds  for                                                                   
electrical  companies that  are charging  their debt  service                                                                   
back to 1999.                                                                                                                   
                                                                                                                                
Mr.    Dewitt   observed    that   Amendment    22-LS800\C.25                                                                   
appropriates  $20  million  dollars  to  the  Marine  Highway                                                                   
System  Fund and  restores some  of  the capitalization  lost                                                                   
over  the  past years.  The  appropriation  would be  in  the                                                                   
supplemental budget.                                                                                                            
                                                                                                                                
Mr. Dewitt noted that Amendment  22-LS800\B.8 would authorize                                                                   
general  funds  for a  suicide  prevention study  to  replace                                                                   
federal funds that were not available.                                                                                          
                                                                                                                                
Mr. Dewitt explained that Amendment  22-LS800\B.6 changes the                                                                   
general fund  appropriation for  parks to receipts  supported                                                                   
services.                                                                                                                       
                                                                                                                                
Mr. Dewitt observed that Amendment  22-LS800\C.28 pertains to                                                                   
Gas Pipeline  Permits.  The Office of  Management and  Budget                                                                   
requested the reappropriation  of up to $150 thousand dollars                                                                   
for  this  purpose.  There  are   no  legislative  funds  for                                                                   
reappropriation  so the request  was moved  to the  Office of                                                                   
the Governor.                                                                                                                   
                                                                                                                                
Mr. Dewitt  explained that  Amendment 22-LS800\C.27  pertains                                                                   
to veterans  and military memorials.  There is a  bill before                                                                   
the legislature to  create an endowment fund  to maintain and                                                                   
develop  better memorials.  The  amendment  would assist  the                                                                   
funding of that action.                                                                                                         
                                                                                                                                
Mr. Dewitt noted  that Amendment 22-LS800\C.30  was a request                                                                   
from  the Department  of  Public  Safety, which  would  carry                                                                   
forward receipts for fire prevention services.                                                                                  
                                                                                                                                
Mr.  Dewitt  observed  that  Amendment   22-LS800\B.9  was  a                                                                   
request  from  the  Department  of  Administration  to  carry                                                                   
forward Pioneer Homer receipts forward into FY03.                                                                               
                                                                                                                                
Mr. Ecklund  noted that Amendment  22-LS800\A.100 was  at the                                                                   
request  of the  Office of  Management and  Budget and  would                                                                   
replace Alyeska  criminal settlement funds that  could not be                                                                   
spent  for the  purposes identified,  with  Exxon Valdez  Oil                                                                   
Spill Settlement funds.                                                                                                         
                                                                                                                                
Mr. Dewitt explained  that the next amendment  [which was not                                                                   
drafted by Legislative Legal Services]  was at the request of                                                                   
the Office  of Management  and Budget  and would  appropriate                                                                   
$87  thousand  dollars as  a  lapsed reappropriation  to  the                                                                   
Department   of   Corrections   for  security,   safety   and                                                                   
renovations  in  community  jails.  It  would  be  a  capital                                                                   
appropriation.                                                                                                                  
                                                                                                                                
Mr.  Ecklund observed  that Amendment  22-LS800\A.101 was  at                                                                   
the request  of the  Office of  Management  and Budget  in an                                                                   
attempt to have loan repayments  deposited into the bulk fuel                                                                   
revolving loan fund.                                                                                                            
                                                                                                                                
Mr.  Dewitt  noted  that  Amendment  22-LS800\A.103  includes                                                                   
lapsing funds from the Legislature to various projects.                                                                         
                                                                                                                                
Mr.  Dewitt discussed  Amendment  22-LS800\B.3. He  explained                                                                   
that  there were  funds available  from the  Bank of  America                                                                   
settlement.  The   funds  would  be  reappropriated   to  the                                                                   
avalanche program in Eagle River.                                                                                               
                                                                                                                                
TAPE HFC 02 - 112, Side B                                                                                                     
                                                                                                                                
Mr.  Dewitt  explained  that  Amendment  22-LS800\C.29  would                                                                   
appropriate  over  $1  million  dollars  [to  the  identified                                                                   
school  districts]. It  effectively defers  the floor  on the                                                                   
education foundation funding until 2004.                                                                                        
                                                                                                                                
In response to a question by Representative  John Davies, Mr.                                                                   
Dewitt  clarified that  subsequent law  cannot be changed  in                                                                   
the  appropriation   bill.  Therefore  the   amendment  would                                                                   
provide  an   extended  lapse  date.  Representative   Davies                                                                   
expressed  concern   that  if  the  amount  is   not  in  the                                                                   
foundation formula than the local match is unable to rise.                                                                      
                                                                                                                                
Co-Chair Mulder agreed and explained  that the method was the                                                                   
best that could be achieved in an appropriation bill.                                                                           
                                                                                                                                
Representative  Hudson  clarified  that the  amendment  would                                                                   
take the place of HB 312.                                                                                                       
                                                                                                                                
Mr.  Dewitt  explained  that Amendment  22-LS800\C.32  was  a                                                                   
replication of HB 175, which was passed by the Committee.                                                                       
                                                                                                                                
Representative  Croft pointed out  that the Minority  offered                                                                   
ten amendments for a total of  $6 million dollars, which were                                                                   
rejected  on  the basis  that  money  was not  available.  He                                                                   
observed that  the first  four part  of omnibus Amendment  15                                                                   
contains $50 million dollars in new funding.                                                                                    
                                                                                                                                
There being NO OBJECTION, Amendment 15 was adopted.                                                                             
                                                                                                                                
Co-Chair Williams MOVED to ADOPT Amendment 16.                                                                                  
                                                                                                                                
Mr.  Ecklund  explained  that  the  first  three  pages  were                                                                   
technical corrections.                                                                                                          
                                                                                                                                
Mr. Dewitt clarified that the  remaining portion of Amendment                                                                   
16  [Amendment   22-LS800\B.7]  corrects  an  error   in  the                                                                   
Certificate of  Need Study. Medicaid  funds must  be directed                                                                   
through the  designated agency  for the state  (Department of                                                                   
Health and Social Services.)                                                                                                    
                                                                                                                                
Mr.  Ecklund explained  that  the  remaining  portion of  the                                                                   
amendment   would  clarify   effective  dates.   Supplemental                                                                   
appropriations  were  given  May 14,  2002  effective  dates.                                                                   
Reappropriations  were given June  30, 2002 effective  dates.                                                                   
July 1, 2002  were used for FY04 and the  remaining effective                                                                   
dates.                                                                                                                          
                                                                                                                                
There being NO OBJECTION, Amendment 16 was adopted.                                                                             
                                                                                                                                
Co-Chair  Mulder  MOVED  to  allow  the  Legislative  Finance                                                                   
Division  and Legislative  Affairs Agency  authority to  make                                                                   
technical  corrections as  they deem  fit, provided  they are                                                                   
not subsequent  and major. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
Representative Foster MOVED to  report HCS CSSB 247 (FIN) out                                                                   
of Committee. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
HCS CSSB  247(FIN) was REPORTED  out of Committee with  a "do                                                                   
pass" recommendation.                                                                                                           

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