Legislature(1999 - 2000)

03/08/2000 08:37 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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SENATE BILL NO. 250                                                                                                             
"An Act making and amending capital, supplemental, and                                                                          
other appropriations and reappropriations; making a                                                                             
reappropriation under art. IX, sec. 17c, Constitution                                                                           
of the State of Alaska, from the constitutional budget                                                                          
reserve fund; making appropriations to capitalize                                                                               
funds; ratifying certain expenditures; and providing                                                                            
for an effective date."                                                                                                         
                                                                                                                                
                                                                                                                                
Co-Chair Torgerson moved to adopt CS SB 250, 1-GS2041\H, as                                                                     
a working draft.                                                                                                                
                                                                                                                                
Senator Adams objected to ask why the Committee was not                                                                         
considering HB 343, the supplemental appropriation already                                                                      
adopted by the House of Representatives. Co-Chair Parnell                                                                       
replied that he desired to use the Senate bill and, as co-                                                                      
chair, had that prerogative. Senator Adams removed his                                                                          
objection and the committee substitute was adopted.                                                                             
                                                                                                                                
AMEND #1: This amendment inserts a new bill section on page                                                                     
4, following line 26 of the committee substitute to read:                                                                       
                                                                                                                                
Page 4, following line 26:                                                                                                      
 Insert a new bill section to read:                                                                                             
Sec. 16. REDISTRICTING PLANNING COMMITTEE. (a) The                                                                              
unexpended and unobligated balance, not to exceed                                                                               
$350,000, of the appropriation made by sec. 70, ch. 2,                                                                          
5 FSSLA 1999 (special election - $939,000) is                                                                                   
reappropriated to the Legislative Council for the                                                                               
fiscal year ending June 30, 2000, for the redistricting                                                                         
planning committee for preparation for the 2000                                                                                 
redistricting plan.                                                                                                             
(b) If the amount available for reappropriation                                                                                 
under (a) of this section is less than $350,000, then                                                                           
the unexpended and unobligated balance, not to exceed                                                                           
the difference between $350,000 and the amount                                                                                  
available for reappropriation under (a) of this                                                                                 
section, of the appropriations made by sec. 64(a), ch.                                                                          
2, FSSLA 1999 (Legislative Council), sec. 64(b), ch. 2,                                                                         
FSSLA 1999 (Legislative Budget and Audit Committee),                                                                            
sec. 64(c). ch. 2. FSSLA 1999 (Legislative Budget and                                                                           
Audit Committee), and sec. 64(d), ch. 2, FSSLA 1999                                                                             
(Legislative Council) is reappropriated to the                                                                                  
Legislative Council for the fiscal year ending June 30,                                                                         
2000. for the redistricting planning committee for                                                                              
preparation for the 2000 redistricting plan.                                                                                    
                                                                                                                                
Co-Chair Parnell spoke to the amendment, which he sponsored,                                                                    
saying the funds were for the redistricting planning                                                                            
committee. He reminded the Committee the legislature had                                                                        
passed a resolution that established a new election district                                                                    
board method to address redistricting in the year 2001. He                                                                      
continued the resolution also created a planning committee                                                                      
and that committee was in the process of gathering software                                                                     
to support the redistricting effort, which could cost as                                                                        
much as $150,000. He said the planning committee also must                                                                      
contract for technical support and training and for the                                                                         
creation of an election database, in addition to buying                                                                         
computer systems.                                                                                                               
                                                                                                                                
Co-Chair Torgerson moved for adoption. Senator Adams                                                                            
objected to ask if the $350,000 appropriation would go to                                                                       
the planning committee.  Co-Chair Parnell explained that the                                                                    
funds would go to the Legislative Council to purchase the                                                                       
above-mentioned items for the planning committee's use.                                                                         
                                                                                                                                
Senator Adams then asked if the Legislative Council was the                                                                     
proper recipient for the funds according to the US                                                                              
Department of Justice requirements. He also requested an                                                                        
estimated total budget and details for the redistricting                                                                        
project.  Co-Chair Parnell countered that it would be hard                                                                      
to predict the cost of the project since the last time it                                                                       
was undertaken was ten years ago.                                                                                               
                                                                                                                                
Senator Adams questioned whether the appropriation wouldn't                                                                     
be better addressed through a resolution or bill with a                                                                         
fiscal note. He also said he had not heard a compelling                                                                         
reason why this appropriation should be included in the fast                                                                    
track supplemental. Co-Chair Parnell referred to his earlier                                                                    
statement that explained the intended usage of the funds.                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Green,                                                                      
Senator Donley, Co-Chair Torgerson and Co-Chair Parnell                                                                         
                                                                                                                                
OPPOSED: Senator Adams                                                                                                          
                                                                                                                                
ABSENT: Senator Leman and Senator Phillips                                                                                      
                                                                                                                                
The MOTION PASSED (6-1-2)                                                                                                       
                                                                                                                                
Co-Chair Torgerson announced that Amendments #2 and #3 were                                                                     
connected but should be taken up in reverse order.                                                                              
                                                                                                                                
AMEND #3: This amendment changes the committee substitute as                                                                    
follows.                                                                                                                        
                                                                                                                                
Page 1, line 1:                                                                                                                 
 Delete "making and amending"                                                                                                   
 Insert "making, amending, and repealing"                                                                                       
Page 10, following line 1:                                                                                                      
 Insert a new bill section to read:                                                                                             
Sec. 23. REPEAL OF ALLOCATION. (a) Section 100,                                                                                 
ch. 2, FSSLA 1999, page 67, line 16, is amended to                                                                              
read:                                                                                                                           
APPROPRIATION  GENERAL   OTHER                                                                                                  
ITEMS  FUND    FUNDS                                                                                                            
Marine Transportation                                                                                                           
Projects  46,282,OOO  4,000,000  42,282,000                                                                                     
[77,882,000]      [73,882,000]                                                                                                  
(b) Section 100, ch. 2, FSSLA 1999, page 69, lines                                                                              
6 - 7, is repealed                                                                                                              
                                                                                                                                
[Note: Text that is new to Section 100, ch. 2, FSSLA 1999 is                                                                    
underlined and deleted text is capitalized and bracketed.]                                                                      
                                                                                                                                
Co-Chair Torgerson moved for adoption. Senator Adams                                                                            
objected.                                                                                                                       
                                                                                                                                
Co-Chair Torgerson referred to backup documents he obtained                                                                     
from communities in Southeast Alaska plus a Transportation                                                                      
Committee Report written by the Southeast Conference                                                                            
Transportation Committee [copies on file].                                                                                      
                                                                                                                                
Co-Chair Torgerson reminded the Committee that the previous                                                                     
year, the legislature had appropriated funds to the                                                                             
Department of Transportation and Public Facilities to build                                                                     
a fast ferry that would operate out of Sitka and service                                                                        
Sitka and Angoon. He stated that he had since received                                                                          
negative feedback from citizens questioning whether the                                                                         
vessel could operate in the Sturgess Narrows and other                                                                          
places as envisioned. He pointed out a statement in the                                                                         
Transportation Committee Report that read, "The state is                                                                        
currently going to bid for a fast vehicle ferry that was                                                                        
originally intended for Sitka but since its utility as a                                                                        
boat for Sitka access is in question it will now be used in                                                                     
the North Lynn Canal corridor."                                                                                                 
                                                                                                                                
Co-Chair Torgerson also spoke of the governor's announcement                                                                    
of plans to build another ferry to service the same route as                                                                    
the M/V Malaspina, without making any changes to how the M/V                                                                    
Malaspina operates. Co-Chair Torgerson stated that a vessel                                                                     
of the size proposed simply would not operate in Lynn Canal                                                                     
and fulfill the needs of that area.                                                                                             
                                                                                                                                
Co-Chair Torgerson continued that he then wrote a letter to                                                                     
Department of Transportation and Public Facilities                                                                              
Commissioner Joe Perkins and had several meetings with                                                                          
Marine Highways staff but did not get answers to his                                                                            
questions about the project.                                                                                                    
                                                                                                                                
Co-Chair Torgerson stated that the bid for construction of                                                                      
the vessel was going out this month and he felt it was                                                                          
prudent to slow the process down until the legislature had a                                                                    
chance to examine the project and decide if it should                                                                           
proceed.                                                                                                                        
                                                                                                                                
Senator Adams pointed out a technical error of line six of                                                                      
the amendment that read, "repeal of an allocation" that                                                                         
should read, "repeal of an appropriation." However, he did                                                                      
not think the funds could be utilized as the two amendments                                                                     
intended. He noted that because the project uses SHAKWAK                                                                        
funds, which can only be used for the Haines Highway or the                                                                     
National Highway System (NHS) ferry items for travel between                                                                    
Canada and the United States. He recommended the Committee                                                                      
seek clarification from US Senator Ted Stephens on how the                                                                      
allocations must be used. Senator Adams said the Committee                                                                      
also had to determine the total cost of a road project.                                                                         
                                                                                                                                
Co-Chair Torgerson responded that the SHAKWAK funds could be                                                                    
used for any NHS system project south of Haines. He stressed                                                                    
that the reallocation was part of the Sitka Corridor Study                                                                      
and therefore qualified. His intention was to use the                                                                           
funding change simply as a "place holder" to account for the                                                                    
funds so they wouldn't be spent on another area of the                                                                          
state. He stated the intention is to solve the problems in                                                                      
Sitka and to provide better transportation service. He added                                                                    
that the funds were not necessarily a full appropriation for                                                                    
a road nor was it his intention that a road be built, just                                                                      
to hold the money "for the people of Sitka" until a plan                                                                        
could be agreed upon.                                                                                                           
                                                                                                                                
Senator Adams said he could be corrected in his statement if                                                                    
the Department of Transportation and Public Facilities were                                                                     
allowed to testify on the amendment.                                                                                            
                                                                                                                                
Co-Chair Parnell said he would like to hear from the                                                                            
department since this meeting was the first time this item                                                                      
was brought before the Committee for consideration.                                                                             
                                                                                                                                
NANCY SLAGLE, Director, Division of Administrative Services,                                                                    
Department of Transportation and Public Facilities spoke to                                                                     
language of Title 23 of US Code that dictates the Alaska                                                                        
Highway, for which the SWAKAK funds are provided. She said                                                                      
the code stipulates that the funds be used for the                                                                              
reconstruction of the Alaska Highway from the Alaskan border                                                                    
to Haines Junction in Canada, and the Haines Cutoff Highway                                                                     
from Haines Junction to Haines. She said the reappropriation                                                                    
to the Sitka road project would require approval by the                                                                         
Federal Highway Administration (FHA) and that the department                                                                    
could not tell the Committee whether or not it would be                                                                         
approved.                                                                                                                       
                                                                                                                                
Co-Chair Parnell stated that Co-Chair Torgerson's intent was                                                                    
only to slow the process to get answers.                                                                                        
                                                                                                                                
Co-Chair Torgerson added that any reallocation of SHAKWAK                                                                       
funds requires approval from the FHA and therefore this                                                                         
matter was not extraordinary. He suggested that if hearings                                                                     
were held within 30 days that resulted in the Committee                                                                         
getting answers, the item could be reinserted in the full                                                                       
supplemental that would be addressed next month.                                                                                
                                                                                                                                
Ms. Slagle read language from Title 23, "upon agreement with                                                                    
the State Of Alaska, the Secretary is authorized." saying                                                                       
this was outside the normal Statewide Transportation                                                                            
Improvement Project (STIP) process and therefore could                                                                          
require special approval. She felt it was important to                                                                          
identify the activities that already transpired concerning                                                                      
this appropriation. She stated that the department had                                                                          
expended approximately $800,000 of the appropriation on                                                                         
preliminary work for the fast ferry to Sitka.                                                                                   
                                                                                                                                
BOB DOLL, Director, Southeast Region, Department of                                                                             
Transportation and Public Facilities and former General                                                                         
Manager, Marine Highway System, Department of Transportation                                                                    
and Public Facilities told about the Vessel Suitability                                                                         
Study. He said the study was to determine which existing                                                                        
ships should continue to be used after the SE Transportation                                                                    
Plan was complete and what new construction might be                                                                            
required and would also show the relative costs of both the                                                                     
capital and operating expenses. He noted a final report of                                                                      
the study should be completed by May.                                                                                           
                                                                                                                                
Mr. Doll then commented on the SHAKWAK ferry and the service                                                                    
for Sitka, saying the department hired a consultant to                                                                          
select a design and builder for the new ferry. One of the                                                                       
questions the consultant was asked, according to Mr. Doll,                                                                      
was the capability of the Catamaran ferry with regards to                                                                       
service the Sitka route. Mr. Doll said the consultant gave a                                                                    
conservative recommendation of the navigation of a ship not                                                                     
yet designed, through the difficult body of water. The                                                                          
department's judgement of the conservative recommendation                                                                       
was that the ship would be more than adequate to carry out                                                                      
the intention of the SE Transportation Plan.                                                                                    
                                                                                                                                
Mr. Doll noted that the report Co-Chair Torgerson referred                                                                      
to was issued by a committee that met for the first time                                                                        
only one month ago. He talked about the inexperience of the                                                                     
group with the subject, saying their recommendations could                                                                      
not be considered as technical or even lay advice.                                                                              
                                                                                                                                
Co-Chair Torgerson challenged Mr. Doll's statement saying                                                                       
the committee had met five times since the last annual                                                                          
meeting of the Southeast Conference Transportation                                                                              
Committee. He qualified that the members might be lay                                                                           
people, but so were the members of the Senate Finance                                                                           
Committee, who also had to rely on the expertise of the                                                                         
department. He stressed that he was unwilling to fund the                                                                       
construction of this ferry plus the two other proposed                                                                          
vessels until he saw data to show how they would operate.                                                                       
                                                                                                                                
Senator Donley was told that Alaskan companies have offered                                                                     
to attempt the route at no charge to determine the                                                                              
feasibility of privatization. He asked if the department had                                                                    
considered the offers.                                                                                                          
                                                                                                                                
Mr. Doll detailed a charter of an 140-foot Alaskan ferry                                                                        
that would be evaluated as it operates through various                                                                          
conditions in the Sitka route over the course of a month                                                                        
beginning in April. He estimated that the state-owned and                                                                       
operated vessel would be about 200 feet.                                                                                        
                                                                                                                                
Co-Chair Parnell then stated for the record, a request to                                                                       
the bill drafters to technically conform all amendments to                                                                      
the committee substitute where appropriate.                                                                                     
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Green,                                                                      
Senator Donley, Co-Chair Torgerson and Co-Chair Parnell                                                                         
                                                                                                                                
OPPOSED: Senator Adams                                                                                                          
                                                                                                                                
ABSENT: Senator Leman and Senator Phillips                                                                                      
                                                                                                                                
The MOTION PASSED (6-1-2)                                                                                                       
                                                                                                                                
Vote 6-3                                                                                                                        
                                                                                                                                
Amendment #2: This amendment inserts a new bill section on                                                                      
page 10 following line 1 of the committee substitute to read                                                                    
as follows.                                                                                                                     
                                                                                                                                
Sec. 23. BARANOF ISLAND TERMINAL ROAD. Section                                                                                  
100, ch. 2, FSSLA 1999, page 69, lines 6 - 7, is                                                                                
amended to read:                                                                                                                
                                                                                                                                
ALLOCATIONS                                                                                                                     
Alaska Marine Highway 31,600,000                                                                                                
System: Sitka to East                                                                                                           
Baranof Island Terminal                                                                                                         
Road [SHUTTLE VESSEL]                                                                                                           
(ED 2)                                                                                                                          
                                                                                                                                
[Note: Text that is new to Section 100, ch. 2, FSSLA 1999 is                                                                    
underlined and deleted text is capitalized and bracketed.]                                                                      
                                                                                                                                
Co-Chair Torgerson moved for adoption and Senator Adams                                                                         
objected for the same reasons he objected to Amendment #3.                                                                      
Co-Chair Torgerson deferred to his earlier arguments in                                                                         
favor of the reallocation.                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Green,                                                                      
Senator Donley, Co-Chair Torgerson and Co-Chair Parnell                                                                         
                                                                                                                                
OPPOSED: Senator Adams                                                                                                          
                                                                                                                                
ABSENT: Senator Leman and Senator Phillips                                                                                      
                                                                                                                                
The MOTION PASSED (6-1-2)                                                                                                       
                                                                                                                                
Amendment #4: This amendment inserts a new subsection to                                                                        
Section 14, Department of Transportation and Public                                                                             
Facilities that reads as follows.                                                                                               
                                                                                                                                
(c) The sum of $132,000 is appropriated from the                                                                                
general fund to the Department of Transportation and                                                                            
Public Facilities, northern region, for the fiscal year                                                                         
ending June 30, 2000, to pay the costs of snow removal                                                                          
on and opening of the Taylor Highway.                                                                                           
                                                                                                                                
Senator Phillips who was not present at this meeting                                                                            
sponsored this amendment. Senator Adams noted that funding                                                                      
for this project was included with several similar snow                                                                         
removal projects in Amendment #10, which he sponsored. He                                                                       
suggested the Committee consider Amendment #10 instead of                                                                       
this amendment.                                                                                                                 
                                                                                                                                
Co-Chair Parnell relayed Senator Phillips's request that                                                                        
this appropriation be considered in some form. Therefore,                                                                       
Co-Chair Parnell was comfortable with addressing the matter                                                                     
as part of Senator Adams's amendment.                                                                                           
                                                                                                                                
The amendment was NOT OFFERED.                                                                                                  
                                                                                                                                
Amendment #5: This amendment inserts a new subsection to                                                                        
Section 14, Department of Transportation and Public                                                                             
Facilities that reads as follows.                                                                                               
                                                                                                                                
(c) The sum of $375,000 is appropriated from the                                                                                
general fund to the Department of Transportation and                                                                            
Public Facilities, northern region highways and                                                                                 
aviation, for unanticipated winter storm costs incurred                                                                         
outside the declared Central Gulf storm systems                                                                                 
disaster area.                                                                                                                  
                                                                                                                                
Senator Adams moved for adoption and Co-Chair Torgerson                                                                         
objected.                                                                                                                       
                                                                                                                                
Co-Chair Torgerson requested this amendment be considered at                                                                    
the bottom of the day's calendar. Senator Adams withdrew his                                                                    
motion and the amendment was HELD.                                                                                              
                                                                                                                                
Amendment #6:                                                                                                                   
                                                                                                                                
DISASTER RELIEF FUND. The sum of $1,000,000 is                                                                                  
appropriated from the general fund and the sum of                                                                               
$3,000,000 is appropriated from federal receipts to the                                                                         
disaster relief fund (AS 26.23.300(a)) for the declared                                                                         
Central Gulf storm systems disaster.                                                                                            
                                                                                                                                
Senator Adams moved for adoption, Co-Chair Torgerson and Co-                                                                    
Chair Parnell objected.                                                                                                         
                                                                                                                                
Senator Adams requested a representative of the department                                                                      
speak to the amendment, which was to avoid cash-flow                                                                            
problems.                                                                                                                       
                                                                                                                                
Co-Chair Parnell commented that the matter was before the                                                                       
Committee before and asked if Senator Adams had any new                                                                         
questions that were not answered before. Senator Adams                                                                          
replied he had no new questions, but that the department                                                                        
needed more money.                                                                                                              
                                                                                                                                
NICO BUS, Administrative Services Manager, Division of                                                                          
Support Services, Department of Military and Veterans                                                                           
Affairs told the Committee that these funds would allow the                                                                     
department to disburse funds to cover costs until the final                                                                     
supplemental appropriation was made. He noted the final                                                                         
costs of the disaster were being determined and this                                                                            
appropriation would allow the department to reimburse people                                                                    
for the expenses they had already incurred.                                                                                     
                                                                                                                                
Co-Chair Parnell objected to inclusion of the item in the                                                                       
fast track noting that none of the Committee's data                                                                             
demonstrated the need for the funds before the regular                                                                          
supplemental appropriation.                                                                                                     
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Adams                                                                                                         
                                                                                                                                
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,                                                                       
Senator Donley, Co-Chair Torgerson and Co-Chair Parnell                                                                         
                                                                                                                                
ABSENT: Senator Leman and Senator Phillips                                                                                      
                                                                                                                                
The MOTION FAILED (1-6-2)                                                                                                       
                                                                                                                                
Amendment #7: This amendment makes the following changes to                                                                     
the committee substitute.                                                                                                       
                                                                                                                                
On page 2, line 3, after the word DEVELOPMENT. Insert                                                                           
(a)                                                                                                                             
On page 2, after line 6 add the following subsections:                                                                          
(b)Section 43, ch. 84, SLA 1999, page 23, line 31                                                                               
is amended to read:                                                                                                             
ALLOCATIONS                                                                                                                     
Foundation Program   686,914,600                                                                                                
[689,054,300]                                                                                                                   
(c) Section 43, ch. 84, SLA 1999, page 24, line 10                                                                              
is amended to read:                                                                                                             
ALLOCATIONS                                                                                                                     
Pupil Transportation   41,914,800                                                                                               
[39,775, 100]                                                                                                                   
                                                                                                                                
[Note: Text that is new to Section 43, ch. 84, FSSLA 1999 is                                                                    
underlined and deleted text is capitalized and bracketed.]                                                                      
                                                                                                                                
Senator Adams moved for adoption and Co-Chair Torgerson and                                                                     
Co-Chair Parnell objected.                                                                                                      
                                                                                                                                
Senator Adams explained that this request takes money from                                                                      
the foundation formula funding to cover the shortfall in                                                                        
pupil transportation costs. He stated that although his                                                                         
district would receive none of these funds, it would assist                                                                     
the Anchorage, Fairbanks, Kenai, Matanuska-Susitna and other                                                                    
school districts.                                                                                                               
                                                                                                                                
Senator Wilken pointed out that if the item were not funded                                                                     
in either supplemental appropriation, pupil transportation                                                                      
would still be funded at slightly less than 98 percent. He                                                                      
felt the money was necessary but did not know why it needed                                                                     
to be included in the fast track.                                                                                               
                                                                                                                                
Co-Chair Torgerson did not approve of the districts renewing                                                                    
the pupil transportation contracts without any negotiation                                                                      
or consideration of legislative appropriation. He wanted an                                                                     
explanation for why the contracts increased 24 percent.                                                                         
                                                                                                                                
AT EASE 9:05 AM / 9:07 AM                                                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Donley and Senator Adams                                                                                      
                                                                                                                                
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,                                                                       
Co-Chair Torgerson and Co-Chair Parnell                                                                                         
                                                                                                                                
ABSENT: Senator Leman and Senator Phillips                                                                                      
                                                                                                                                
The MOTION FAILED (2-5-2)                                                                                                       
                                                                                                                                
Amendment #8: This amendment deletes Section 7 (b) and                                                                          
Section 8 from the committee substitute. That language is as                                                                    
follows.                                                                                                                        
                                                                                                                                
Sec. 7. DEPARTMENT OF LAW.                                                                                                      
 (b) the sum of $500,000 is appropriated from                                                                                   
the general fund to the Department of Law for the                                                                               
purpose of advocating the state's legal position                                                                                
on issues related to the protection of rights and                                                                               
privileges granted to Alaska at Statehood, state                                                                                
jurisdictions and authorities, state sovereignty                                                                                
and other states-rights issues for the fiscal                                                                                   
years ending June 30, 2000 and June 30, 2001.                                                                                   
Sec. 8. LEGISLATIVE COUNCIL. The sum of $400,000                                                                                
is appropriated from the general fund to the                                                                                    
Legislative Council for the purpose of supporting                                                                               
the state's interests, including litigation on                                                                                  
issues related to the protection of rights and                                                                                  
privileges granted to Alaska at Statehood, state                                                                                
jurisdictions and authorities, state sovereignty                                                                                
and other states-rights issues for the fiscal                                                                                   
years ending June 30, 2000 and June 30, 2001.                                                                                   
                                                                                                                                
Senator Adams moved for adoption and Co-Chair Parnell and                                                                       
Co-Chair Torgerson objected.                                                                                                    
                                                                                                                                
Senator Adams stated he offered the amendment to save the                                                                       
state $900,000. He said he had not heard a good reason to                                                                       
spend the money for statehood defense. He specified the                                                                         
Glacier Bay case and pointed out that $380,000 had already                                                                      
been appropriated for that issue. He added that the                                                                             
Department of Law was given $980,000 for general statehood                                                                      
defense items and half that amount remained unspent. He also                                                                    
wanted an explanation of how the funds would be spent. He                                                                       
noted the state only spent $226,000 to argue the Venetie                                                                        
Indian Country issue.                                                                                                           
                                                                                                                                
Co-Chair Parnell reiterated his comments from the previous                                                                      
meeting that there are numerous issues before the state and                                                                     
listed them as: Antiquities Act withdrawals by President                                                                        
Clinton, national forest roadless issues, rights-of-way                                                                         
issues, Denali National Park snowmachine uses, etc. He urged                                                                    
members to vote against the motion.                                                                                             
                                                                                                                                
Senator Adams rebutted that the Department of Law had                                                                           
defended the need for the funds but that the department had                                                                     
$490,000 left from the original allocation for this purpose,                                                                    
which he surmised was adequate to defend the above mentioned                                                                    
items.                                                                                                                          
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Adams                                                                                                         
                                                                                                                                
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,                                                                       
Senator Donley, Co-Chair Torgerson and Co-Chair Parnell                                                                         
                                                                                                                                
ABSENT: Senator Leman and Senator Phillips                                                                                      
                                                                                                                                
The MOTION FAILED (1-6-2)                                                                                                       
                                                                                                                                
Amendment #9: This amendment inserts a new subsection to                                                                        
Section 14, Department of Transportation and Public                                                                             
Facilities that reads as follows.                                                                                               
                                                                                                                                
(f) The sum of $180,000 is appropriated from the                                                                                
general fund to the Department of Transportation and                                                                            
Public Facilities, northern region, for the fiscal year                                                                         
ending June 30, 2000, to pay the costs of opening the                                                                           
Trims Camp maintenance station.                                                                                                 
                                                                                                                                
Senator Adams moved for adoption and Co-Chair Parnell                                                                           
objected.                                                                                                                       
                                                                                                                                
Senator Adams explained this appropriation would cover cost                                                                     
of maintenance in the Northern Region. He spoke of the high                                                                     
amount of snowfall in the region, the safety issues, delayed                                                                    
travel and the need to keep the maintenance camp open. He                                                                       
noted that travelers have been diverted through to the Tok                                                                      
Junction.                                                                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Adams                                                                                                         
                                                                                                                                
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,                                                                       
Senator Donley, Co-Chair Torgerson and Co-Chair Parnell                                                                         
                                                                                                                                
ABSENT: Senator Leman and Senator Phillips                                                                                      
                                                                                                                                
The MOTION FAILED (1-6-2)                                                                                                       
                                                                                                                                
Amendment #10: This amendment adds a new subsection to                                                                          
Section 14, Department of Transportation and Public                                                                             
Facilities that reads as follows:                                                                                               
                                                                                                                                
Page 7, after line 26,                                                                                                          
Add a new section to read:                                                                                                      
(e) The sum of $299,150 is appropriated from the                                                                                
general fund to the Department of Transportation                                                                                
and Public Facilities, northern region, for the                                                                                 
fiscal year ending June 30, 2000, to pay the                                                                                    
costs of snow removal and opening of the                                                                                        
following roads and is allocated in the following                                                                               
amounts:                                                                                                                        
Taylor Highway     $132,000                                                                                                     
Boundary Spur     $ 10,500                                                                                                      
Nome-Teller Road    $ 35,700                                                                                                    
Nome-Council Road    $ 34,700                                                                                                   
Kougarok Road/Nome Dexter Bypass $ 43,000                                                                                       
Glacier Creek/Nome    $ 10,100                                                                                                  
McCarthy Road     $  8,700                                                                                                      
Denali Highway     $ 20,500                                                                                                     
Fbks Cr.,Tofty, Eureka/Rampart  $  3,950                                                                                        
Total      $299,150                                                                                                             
                                                                                                                                
Senator Adams moved for adoption and Co-Chair Parnell                                                                           
objected.                                                                                                                       
                                                                                                                                
Senator Adams explained the snow removal was a cheaper way                                                                      
to take care of the roads than allowing the snow to melt. He                                                                    
spoke of the damage caused by snow meltage and the benefits                                                                     
of opening the roads for tourism, economic benefits of such                                                                     
operations as mining and safety impacts.                                                                                        
                                                                                                                                
Co-Chair Torgerson opposed the amendment saying that the                                                                        
governor had offered a similar measure a few years before.                                                                      
He shared that the criticism at that time was that the                                                                          
legislature did not notify the communities or the Canadian                                                                      
government that the roads would not be opened sooner and so                                                                     
the legislature "backed off". This year, he stressed the                                                                        
communities were notified of the legislature's intent to not                                                                    
open the roads. He added that program receipts were included                                                                    
in the budget to allow for private mining companies or                                                                          
municipalities to pay the department to perform the snow                                                                        
removal service.                                                                                                                
                                                                                                                                
Senator Adams agreed that notification was given to                                                                             
communities and that some communities did attempt to cover                                                                      
the costs themselves. However, he noted that due to heavy                                                                       
snowfall, the additional maintenance problems required more                                                                     
money than the communities could contribute.                                                                                    
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Adams                                                                                                         
                                                                                                                                
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,                                                                       
Senator Donley, Co-Chair Torgerson and Co-Chair Parnell                                                                         
                                                                                                                                
ABSENT: Senator Leman and Senator Phillips                                                                                      
                                                                                                                                
The MOTION FAILED (1-6-2)                                                                                                       
                                                                                                                                
Amendment #11: This amendment increases the Alaska                                                                              
Industrial Development and Export Authority funding                                                                             
appropriation to the Power Cost Equalization program from                                                                       
$3,600,000 to $8 million.                                                                                                       
                                                                                                                                
Senator Adams moved for adoption and Co-Chair Parnell                                                                           
objected.                                                                                                                       
                                                                                                                                
Senator Adams stated the amendment reflects the actual                                                                          
amount that the Power Cost Equalization (PCE) program needed                                                                    
to complete the fiscal year. He spoke of action taken by the                                                                    
legislature in 1999 to appropriate at least $17 million a                                                                       
year until at least 2013 and said that legislation was not                                                                      
being complied with. He relayed that people in rural Alaska                                                                     
would wonder about the future of the program, saying he                                                                         
wanted the legislature to give those residents a sense of                                                                       
security. He also spoke of the higher cost of diesel fuel.                                                                      
                                                                                                                                
Co-Chair Parnell pointed out that this appropriation would                                                                      
fund the program through May 15 and until further                                                                               
discussions could be held. He noted that the previous year,                                                                     
the legislature thought that the funding source was secured,                                                                    
but found out it was not.                                                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Adams                                                                                                         
                                                                                                                                
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,                                                                       
Senator Donley, Co-Chair Torgerson and Co-Chair Parnell                                                                         
                                                                                                                                
ABSENT: Senator Leman and Senator Phillips                                                                                      
                                                                                                                                
The MOTION FAILED (1-6-2)                                                                                                       
                                                                                                                                
AT EASE 9:19 AM / 9:26 AM                                                                                                       
                                                                                                                                
Amendment #12: This amendment adds a new section to read as                                                                     
follows.                                                                                                                        
                                                                                                                                
DEPARTMENT OF CORRECTIONS. The sum of $70,000 is                                                                                
appropriated from statutory designated program receipts                                                                         
to the Department of Corrections, Administration and                                                                            
Operations, Institution Director's Office, for                                                                                  
operating costs associated with the Star Schools                                                                                
Program for the fiscal year ending June 30, 2000.                                                                               
                                                                                                                                
Senator Adams moved for adoption.                                                                                               
                                                                                                                                
DWAYNE PEEPLES, Director, Division of Administrative                                                                            
Services, Department of Corrections explained the funds were                                                                    
from the US Department of Education, which were appropriated                                                                    
to the statewide school district of Washington State.                                                                           
Washington, he continued, has operated a long-distance                                                                          
education program across that state in addition to the                                                                          
McLaughlin High School, a youth detention center in                                                                             
Anchorage. He said both the Department of Corrections and                                                                       
the Department of Health and Social Services feel this was a                                                                    
viable opportunity to expand and reinforce the facility's                                                                       
educational services.                                                                                                           
                                                                                                                                
Co-Chair Parnell asked what the $70,000 would be used for.                                                                      
Mr. Peeples replied that the money received this year would                                                                     
be used to purchase computers, television, videocassette                                                                        
recorders and satellite linkages for communication.                                                                             
                                                                                                                                
Co-Chair Parnell wanted to know if the equipment was only                                                                       
for educational purposes. Mr. Peeples affirmed.                                                                                 
                                                                                                                                
Senator Green asked if the program only operated at the                                                                         
McLaughlin facility. Mr. Peeples was unsure but thought                                                                         
other facilities participated as well.                                                                                          
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Amendment #5: A motion to adopt this amendment was made and                                                                     
then withdrawn earlier in the meeting.                                                                                          
                                                                                                                                
Senator Adams again moved for adoption and Co-Chair                                                                             
Torgerson objected for explanation.                                                                                             
                                                                                                                                
Ms. Slagle explained the request to cover the cost of                                                                           
extraordinary and unusual winter storm activities in the                                                                        
northern region outside the declared disaster area. She                                                                         
listed the areas and the projects as closures on the Steese,                                                                    
Elliot and Richardson Highways, snow clearing on some rural                                                                     
airports, etc. She stressed the funding was needed in the                                                                       
fast track to accommodate cash flow needs and that if not                                                                       
provided, the department would have lay off, for one month,                                                                     
87 positions or 40 percent of the highway and aviation                                                                          
personnel.                                                                                                                      
                                                                                                                                
Co-Chair Torgerson supported the amendment noting that he                                                                       
had questions earlier about how $375,000 would sustain the                                                                      
region for three months. He was satisfied with the answer                                                                       
that the department had already spent over a million dollars                                                                    
under the disaster declaration and was hoping for                                                                               
reimbursement. He also was told that additional federal                                                                         
funds would be received soon for summer projects, which                                                                         
would sustain the department through the end of the fiscal                                                                      
year.                                                                                                                           
                                                                                                                                
Co-Chair Torgerson removed his objection.                                                                                       
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Co-Chair Torgerson offered a motion to report from                                                                              
Committee, CS SB 250, 1-GS2041\H, as amended and with                                                                           
individual recommendations. Without objection, the bill was                                                                     
reported from Committee.                                                                                                        

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