Legislature(1993 - 1994)

03/24/1993 01:35 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                         March 24, 1993                                        
                            1:35 p.m.                                          
                                                                               
  TAPE HFC 93-57, Side 1, #000 - end.                                          
  TAPE HFC 93-57, Side 2, #000 - end.                                          
  TAPE HFC 93-58, Side 1, #000 - end.                                          
  TAPE HFC 93-58, Side 2, #000 - end.                                          
  TAPE HFC 93-59, Side 1, #000 - end.                                          
  TAPE HFC 93-59, Side 2, #000 - 267.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 1:35 p.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson             Representative Hoffman                           
  Co-Chair MacLean            Representative Martin                            
  Vice-Chair Hanley           Representative Navarre                           
  Representative Brown        Representative Parnell                           
  Representative Foster       Representative Therriault                        
  Representative Grussendorf                                                   
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative      Ulmer;      Representative     Davidson;                 
  Representative  Davies;  Mike Greany,  Director, Legislative                 
  Finance  Division;  Cheryl  Frasca,  Director,  Division  of                 
  Budget Review, Office  of Management  and Budget; Darrel  J.                 
  Rexwinkel,  Commissioner,  Department  of  Revenue;  Rod  R.                 
  Mourant,  Special Assistant,  Department  of Revenue;  Tracy                 
  McGill,  Director,  Division  of   Administrative  Services,                 
  Department of Revenue;  Nico Bus;  Chief Financial  Officer,                 
  Department   of  Natural   Resources;  Raga   Elim,  Special                 
  Assistant, Department of  Natural Resources; Bruce  Botelho,                 
  Assistant  Attorney  General,  Department  of  Law;  Richard                 
  Pegues,  Director,  Division  of   Administrative  Services,                 
  Department of  Law; Dean Guaneli, Chief,  Assistant Attorney                 
  General, Department  of Law; Edgar  Blatchford Commissioner,                 
  Department of Community and Regional Affairs;                                
  Remond  Henderson,  Director,  Division   of  Administrative                 
  Service, Department of Community and Regional  Affairs; Carl                 
  L. Rosier, Commissioner,  Department of  Fish and Game;  Ron                 
  Somerville,  Deputy  Commissioner,  Department  of Fish  and                 
  Game;  Larry Jones,  Director,  Division of  Administration,                 
  Department   of  Fish  and  Game;  William  Stoltze,  Staff,                 
  Representative Willis.                                                       
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
                                                                               
                                1                                              
                                                                               
                                                                               
  HB 55     "An Act  making appropriations  for the  operating                 
            and loan program expenses of state  government and                 
            to   capitalize  funds;   and  providing   for  an                 
            effective date."                                                   
                                                                               
            HB 55 was HELD in Committee.                                       
  DEPARTMENT OF REVENUE - AMENDMENTS                                           
                                                                               
  Representative Grussendorf MOVED to  RESCIND the Committee's                 
  action  in  adopting  Amendment  REV-7.     There  being  NO                 
  OBJECTION, it  was so  ordered.   Representative Grussendorf                 
  provided members with substitute Amendment REV-7 (Attachment                 
  1).  He explained  that the amendment would restore  funding                 
  to keep the  Fairbanks and Juneau Child  Support Enforcement                 
  Offices  open.    Funding  would  be taken  from  the  Human                 
  Relations Commission.                                                        
                                                                               
  Representative Grussendorf MOVED  to ADOPT AMENDMENT  REV-7.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Representative Brown provided members  with AMENDMENT REV-9,                 
  additional support  to the Oil and Gas Audit component (copy                 
  on file).   Representative  Brown MOVED  to AMEND  Amendment                 
  REV-9,  to  delete  "$500.0"  and  insert  "$200.0" thousand                 
  dollars.   There  being  NO OBJECTION,  it  was so  ordered.                 
  Representative  Martin  OBJECTED  to  the  adoption  of  the                 
  amended amendment.                                                           
                                                                               
  DARREL  J. REXWINKEL,  COMMISSIONER,  DEPARTMENT OF  REVENUE                 
  stressed that the Department must issue an assessment within                 
  three  years of  the tax  filing date  in order to  meet the                 
  statute  of  limitations.   After  the  assessment  has been                 
  issued the Department has  six years to complete  the audit.                 
  He emphasized  the  need  to  complete timely  audits.    He                 
  maintained that the Division's audits are failing behind.                    
                                                                               
  A roll call vote  was taken on the motion to adopt AMENDMENT                 
  REV-9 as amended.                                                            
                                                                               
  IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre                       
  OPPOSED:  Hanley,  Martin,  Parnell,   Therriault,  MacLean,                 
  Larson                                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative Brown  WITHDREW  AMENDMENT  REV-10  (copy  on                 
  file).                                                                       
                                                                               
  Representative Grussendorf  MOVED to  ADOPT INTENT  LANGUAGE                 
  REV-A:    "It is  the  intent  of the  Legislature  that the                 
  Department will keep the Fairbanks  and Juneau field offices                 
                                                                               
                                2                                              
                                                                               
                                                                               
  of the Child  Support Enforcement  Division operating in  FY                 
  94."  Representative Martin expressed  his desire to see the                 
  offices expand their  functions.  There being  NO OBJECTION,                 
  it was so ordered.                                                           
                                                                               
  Representative  Martin MOVED to ADOPT INTENT LANGUAGE REV-B:                 
  "It is the intent of the  Legislature that the Department of                 
  Revenue delete all  unfunded PCN's."  Intent  Language REV-B                 
  was previously adopted.                                                      
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department of Law component #87, Third Judicial District                 
  to  amend interagency  receipts services  requests  (copy on                 
  file).                                                                       
                                                                               
  DEAN GUANELI,  CHIEF ASSISTANT ATTORNEY  GENERAL, DEPARTMENT                 
  OF LAW explained  that the amendment would provide one legal                 
  secretary   for  a   federally  funded  narcotics   unit  in                 
  Anchorage.    There  being  NO   OBJECTION,  the  Governor's                 
  Amendment for  the Department  of Law  component #87,  Third                 
  Judicial  district to  amend  interagency receipts  services                 
  requests, was adopted.                                                       
                                                                               
  BRUCE BOTELHO,  DEPUTY ATTORNEY  GENERAL, DEPARTMENT  OF LAW                 
  clarified that legal counsel for  the Alaska Housing Finance                 
  Corporation is being transferred to the Department of Law.                   
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department  of Law  component #93,  Operations, attorney                 
  transfer (copy on file).   There being NO OBJECTION,  it was                 
  so ordered.                                                                  
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department of Law component  #1421, Mental Health Lands,                 
  accelerate  reconstitution  Mental  Health  Trust  (copy  on                 
  file).  Mr.  Botelho explained that $500.0  thousand dollars                 
  would allow  the completion   of  technical work  associated                 
  with the  Weiss settlement.   Members  asked the  settlement                 
  status.  Mr. Botelho  was unable to answer.   The Governor's                 
  Amendment for the Department of  Law component #1421, Mental                 
  Health Lands, accelerate reconstitution  Mental Health Trust                 
  was HELD open.                                                               
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the  Department   of  Law  component  #1175,   Exxon  Valdez                 
  litigation (copy on file).  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  Co-Chair  Larson  MOVED to  ADOPT  AMENDMENT LAW-1  (copy on                 
  file).    He  explained  that  the amendment  would  add  an                 
                                                                               
                                3                                              
                                                                               
                                                                               
  attorney  III  position to  handle  the increased  number of                 
  cases expected  to be  generated by  the new  Wasilla police                 
  force (Attachment 2).  Mr. Guaneli clarified that the Valdez                 
  and Glennallen cases are  also handled out of the  Palmer DA                 
  office.   Representative Martin  OBJECTED to  the motion  to                 
  adopt Amendment  LAW-1.  A roll  call vote was taken  on the                 
  motion.                                                                      
                                                                               
  IN FAVOR: Parnell,    Therriault,   Grussendorf,    Hoffman,                 
  Maclean,       Larson                                                        
  OPPOSED:  Martin, Brown, Hanley                                              
                                                                               
  The MOTION PASSED (6-3).                                                     
                                                                               
  Representatives Navarre and Foster were  not present for the                 
  vote.                                                                        
                                                                               
  Representative  Brown MOVED  to  ADOPT AMENDMENT  LAW-2, add                 
  $145.0 thousand dollars for two investigators, Fair Business                 
  Practice  (copy on  file).   Mr. Botelho  observed that  the                 
  Fairbanks  investigator  is  the  only  individual  able  to                 
  respond    to    consumer    complaints   (Attachment    3).                 
  Representative Hanley  OBJECTED.  A roll call vote was taken                 
  on the motion to adopt Amendment LAW-2.                                      
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Foster,   Hanley,   Hoffman,    Martin,   Parnell,                 
  Therriault,         MacLean, Larson                                          
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative Navarre MOVED to ADOPT AMENDMENT LAW-3  (copy                 
  on file).  Co-Chair Larson observed that the amendment would                 
  decrease  Permanent  Fund  corporation  receipts  for  legal                 
  expenses  incurred  by  the  Department  of  Law  for  cases                 
  resulting in payments to the Fund.                                           
                                                                               
  (Tape Change, HFC 93-57, Side 2)                                             
                                                                               
  Co-Chair Larson referred  to a letter from  Attorney General                 
  Cole,  dated  3/9/93  (Attachment 4).    The  letter details                 
  charges that  should have  been made  to the  Permanent Fund                 
  Corporation.   Mr.  Botelho added  that  litigation requires                 
  continuing support from the Corporation.                                     
                                                                               
  There being NO OBJECTION, Amendment LAW-3 was adopted.                       
                                                                               
  Representative  Brown   MOVED  to   ADOPT,   on  behalf   of                 
  Representative Willis, INTENT LANGUAGE LAW-A (copy on file).                 
  The intent language would ask the  Department of Law to work                 
  with  the University  of Alaska  to use  student interns  to                 
  assist with screening consumer complaints.                                   
                                                                               
                                4                                              
                                                                               
                                                                               
  Representative  Hanley   noted  that  the   intent  language                 
  includes the request that the Department of Law consult with                 
  the Alaska Public Interest Research Group.                                   
                                                                               
  WILLIAM STOLTZE, STAFF, REPRESENTATIVE WILLIS explained that                 
  the  sponsor  included the  Alaska Public  Interest Research                 
  Group due to their interest.                                                 
                                                                               
  Representative Brown  MOVED to AMEND Intent  Language LAW-A,                 
  to delete "and  the Alaska Public Interest  Research Group".                 
  There being NO OBJECTION, it was so ordered.  Representative                 
  Martin OBJECTED to the motion to adopt Intent Language LAW-A                 
  as amended.  A roll call vote was taken on the motion.                       
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,   Navarre,  Foster,                 
  Hanley,        Parnell, MacLean, Larson                                      
  OPPOSED:  Martin, Therriault                                                 
                                                                               
  Representatives Navarre and MacLean were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (7-2).                                                     
                                                                               
  DEPARTMENT OF FISH AND GAME                                                  
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the   Department   of   Fish   and  Game   component   #479,                 
  Administrative Services (copy on file).                                      
                                                                               
  LARRY JONES, DIRECTOR, DIVISION  OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT OF  FISH AND  GAME explained  that the  amendment                 
  would provide vendor compensation for  the King Salmon Fund.                 
                                                                               
                                                                               
  Representative Hanley noted that  legislation is pending  to                 
  allow  vendor  compensation from  the  Fish and  Game Funds.                 
  Representative  Hanley   MOVED  to   AMEND  the   Governor's                 
  Amendment  for  the Department  of  Fish and  Game component                 
  from general funds  to other (Fish  and Game Funds).   There                 
  being  NO  OBJECTION, #479  was  amended.   There  being  NO                 
  OBJECTION, component #479 as amended was adopted.                            
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the  Department  of Fish  and  Game component  #487, Special                 
  Projects  (copy on  file).   Mr.  Jones  explained that  the                 
  amendment would increase travel for State Emergency Response                 
  Commission meetings.   Representative Hanley  MOVED to  keep                 
  the amendment open.   There  being NO OBJECTION,  it was  so                 
  ordered.                                                                     
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  Representative Hanley MOVED to ADOPT AMENDMENT FG-2 (copy on                 
  file).    The  amendment was  by  request  of Representative                 
  Williams.   The amendment  would transfer  funding from  the                 
  Habitat component  to the Commercial  Fisheries component to                 
  increase harvest opportunities.                                              
                                                                               
  CARL L. ROSIER,  COMMISSIONER, DEPARTMENT  OF FISH AND  GAME                 
  spoke against the amendment.  He asserted that  the Division                 
  of Habitat  would be  adversely affected  by the  reduction.                 
  Representative Hanley spoke against the amendment.                           
                                                                               
  Representative Hoffman pointed out that general fund support                 
  for the Department of  Fish and Game has been  reduced since                 
  1982 by $9.4 million dollars or 17.9 percent.                                
                                                                               
  A roll call vote  was taken on the motion to adopt Amendment                 
  FG-2.                                                                        
                                                                               
  IN FAVOR: Grussendorf, Hoffman, Navarre                                      
  OPPOSED:  Brown,    Foster,    Hanley,    Martin,   Parnell,                 
  Therriault,         MacLean, Larson                                          
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative Hoffman MOVED to add $200.0 thousand  dollars                 
  to  the Commercial  Fisheries  BRU  (Amendment FG-2,  second                 
  part).  A roll call vote was taken on the motion.                            
                                                                               
  IN FAVOR: Brown,  Foster,  Grussendorf,   Hoffman,  Navarre,                 
  MacLean                                                                      
  OPPOSED:  Hanley, Martin, Parnell, Therriault, Larson                        
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative Hanley  WITHDREW  AMENDMENTS  FG-3  and  FG-4                 
  (copy on file).                                                              
                                                                               
  Representative Hoffman  WITHDREW  AMENDMENT  FG-5  (copy  on                 
  file).                                                                       
                                                                               
  Representative  Grussendorf MOVED  to  ADOPT AMENDMENT  FG-6                 
  (copy  on file).    He explained  that  the amendment  would                 
  provide funding for two additional  hearing officers for the                 
  Commercial Fisheries Entry  Commission.   He noted that  the                 
  caseload is backlogged.                                                      
  A roll call vote was taken on the motion.                                    
                                                                               
  IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre                       
  OPPOSED:  Hanley, Parnell, Therriault, MacLean, Larson                       
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
                                                                               
                                6                                              
                                                                               
                                                                               
  Representative Grussendorf WITHDREW AMENDMENTS FG-7 and FG-8                 
  (copy on file).                                                              
                                                                               
  Representative  Navarre MOVED  to  HOLD OPEN  AMENDMENT FG-9                 
  (copy on file).                                                              
                                                                               
  Representative Hanley, on behalf of Representative G. Davis,                 
  MOVED  to  ADOPT  AMENDMENT FG-10,  reduce  funding  for the                 
  Snettisham hatchery by $100.0 thousand dollars  and increase                 
  funding for the Crooked Creek hatchery (copy on file).                       
                                                                               
  Representative Navarre suggested that the amendment could be                 
  funded through Fish  and Game Funds.   He expressed  concern                 
  that  sport  fish  stocks  will  be  adversely  affected  by                 
  reductions to the hatcheries program.                                        
                                                                               
  (Tape Change, HFC 93-58, Side 1)                                             
                                                                               
  Commissioner  Rosier  discussed  the   impact  of  a  $100.0                 
  thousand dollar reduction  to the  Snettisham hatchery.   He                 
  asserted that the reduction would  adversely affect hatchery                 
  stocks.                                                                      
                                                                               
  Representative Hanley stressed that  the hatcheries will not                 
  be funded beyond FY 94.                                                      
                                                                               
  RON  SOMERVILLE, SPECIAL  ASSISTANT, DEPARTMENT OF  FISH AND                 
  GAME emphasized that  the Department is anticipating  a $1.0                 
  million  dollar shortfall in  federal funds for the Division                 
  of Sport Fish.  He added that the House Finance Subcommittee                 
  for the Department  has also  recommended a $488.0  thousand                 
  dollar reduction in the Division of Sport Fish.                              
                                                                               
  REPRESENTATIVE FRAN  ULMER stressed  the  importance of  the                 
  Snettisham hatchery.                                                         
                                                                               
  Representative  Navarre MOVED to  AMEND Amendment  FG-10, to                 
  change the funding  source from  the Snettisham hatchery  to                 
  the Fish and Game Fund.  Members discussed the Fish and Game                 
  Fund.  Commissioner Rosier noted that the Fish and Game Fund                 
  is  already committed.    He stressed  that  passage of  the                 
  amendment  would  result   in  a  $100.0  thousand   dollars                 
  reduction to one of the projects  already approved.  Members                 
  discussed the  Fairbanks  office space.    Co-Chair  MacLean                 
  noted that  she was reviewing whether  building construction                 
  is a proper  use of Fish and  Game Funds.  A  roll call vote                 
  was taken on the motion to adopt Amendment FG-10 as amended.                 
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
  MacLean,       Larson                                                        
                                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Hoffman  MOVED to  ADOPT AMENDMENT  FG-11, on                 
  behalf of Representative Davidson (copy on file).                            
                                                                               
  REPRESENTATIVE CLIFF DAVIDSON explained that Amendment FG-11                 
  would add 170.0 thousand dollars in program receipts for the                 
  transition  of  the  Kitoi  Bay  and Pillar  Creek  hatchery                 
  managers.  The private aquaculture  association will pay the                 
  salaries.   There being  NO OBJECTION,  Amendment FG-11  was                 
  adopted.                                                                     
                                                                               
  Co-Chair MacLean MOVED to ADOPT AMENDMENT FG-1, to add $74.0                 
  thousand dollars for  the regional  coordinator in  Kotzebue                 
  and delete $74.0  thousand dollars for the  Southeast Stream                 
  Rehabilitation   project.       Representative   Grussendorf                 
  OBJECTED.  He specifically objected to the funding source.                   
                                                                               
  Commissioner Rosier expressed support for  the addition of a                 
  Kotzebue   regional  coordinator.    He  stressed  that  the                 
  reduction would have adverse effects but that the Department                 
  would support the amendment.                                                 
                                                                               
  Representative Grussendorf  MOVED to AMEND  Amendment FG-1to                 
  change the funding source  to general funds by  deleting the                 
  decrement.  Representative Hanley OBJECTED.   Representative                 
  Hoffman spoke on behalf of the motion to amend.  A roll call                 
  vote was taken on the motion to amend.                                       
                                                                               
  IN FAVOR: Brown,  Foster,  Grussendorf,   Hoffman,  Navarre,                 
  MacLean                                                                      
  OPPOSED:  Parnell, Therriault, Hanley, Larson                                
                                                                               
  Representative Martin was not present for the vote.                          
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Representative  Hanley  OBJECTED  to  the  motion  to  adopt                 
  Amendment FG-1  as amended.  A  roll call vote was  taken on                 
  the motion to adopt Amendment FG-1 as amended.                               
                                                                               
  IN FAVOR: Brown, Hoffman, Grussendorf, Navarre, MacLean                      
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
  Larson                                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  On behalf of Representative Davidson, Representative Hoffman                 
  MOVED to ADOPT INTENT LANGUAGE FG-A (copy on file).                          
                                                                               
  REPRESENTATIVE  CLIFF  DAVIDSON  explained that  the  intent                 
  language would assure that the Westward Region office of the                 
                                                                               
                                8                                              
                                                                               
                                                                               
  Department of  Fish and  Game will  not be  eliminated.   He                 
  emphasized  the  need  for  regional  representation in  the                 
  state's leading fishing region.                                              
                                                                               
  Commissioner Rosier  acknowledged Kodiak's  importance as  a                 
  regional office but emphasized that cuts must be made.                       
                                                                               
  (Tape Change, HFC 93-58, Side 2)                                             
                                                                               
  Representative Davidson spoke against centralization.  There                 
  being NO OBJECTION, Intent Language FG-A was adopted.                        
                                                                               
  Representative  Hanley MOVED  to ADOPT INTENT  LANGUAGE FG-B                 
  (copy on  file).  He  explained that funding  for hatcheries                 
  will not be continued past FY 94.  There being NO OBJECTION,                 
  it was so ordered.                                                           
                                                                               
  Representative Hanley  MOVED to ADOPT  INTENT LANGUAGE  FG-C                 
  (copy on file).  He explained that the intent language would                 
  indicate the  project  allocations  for  increasing  harvest                 
  opportunities.    A  total  of  $333.0 thousand  dollars  is                 
  appropriated to the Commercial  Fisheries component.   There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS                                 
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department of  Community and Regional Affairs  component                 
                                                                               
  CHERYL FRASCA,  DIVISION DIRECTOR, OFFICE OF  MANAGEMENT AND                 
  BUDGET, OFFICE OF THE GOVERNOR  explained that the amendment                 
  would  make a  technical adjustments  in designated  grants.                 
  Representative Brown asked  which grants would  be affected.                 
  The amendment was HELD for further information.                              
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department  of Community and Regional  Affairs component                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department of Community  and Regional Affairs  component                 
  profiles and maps (copy on file).  Representative Therriault                 
  asked that the  amendment be HELD  open.  The amendment  was                 
  HELD open.                                                                   
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department of Community  and Regional Affairs  component                 
  Frasca  explained that  the amendment  wold add  interagency                 
                                                                               
                                9                                              
                                                                               
                                                                               
  receipt   authority   for  the   State   Emergency  Response                 
  Commission.   Representative  Therriault asked  to that  the                 
  amendment be HELD open.  The amendment was HELD open.                        
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department of  Community and Regional  Affairs component                 
  explained that the amendment would transfer travel funds for                 
  the  State Emergency  Response  Commission.   Representative                 
  Brown  noted that the amendment  was related to the previous                 
  amendment.  The  Governor's Amendment for the  Department of                 
  Community  and Regional  Affairs  component #676,  Statewide                 
  Assistance was HELD open.                                                    
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the  Department of Community  and Regional Affairs component                 
  Frasca explained that the amendment  would fund two economic                 
  specialists to aid the  Community Development Quota program.                 
  Representative Hanley expressed his desire for an offsetting                 
  decrement.  Representative  Navarre spoke in support  of the                 
  amendment.  Co-Chair MacLean requested that the amendment be                 
  HELD.    The  Governor's  Amendment  for the  Department  of                 
  Community  and Regional  Affairs component  #1179, Community                 
  Development Assistance was HELD open.                                        
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department of  Community and Regional Affairs  component                 
  ordered.                                                                     
                                                                               
  Representative  Hanley MOVED  to  ADOPT AMENDMENT  CRA-1, by                 
  request  of  Representative  Hudson  (copy  on  file).    He                 
  explained  that  the  amendment  would  reallocate  cuts  to                 
  Perseverance  Theatre  and  Sealaska   Heritage  Foundation.                 
  Representative Therriault  spoke against  the amendment.   A                 
  roll call vote was taken on the motion.                                      
                                                                               
  IN FAVOR: Brown,  Foster,   Grussendorf,  Hanley,   Navarre,                 
  Parnell                                                                      
  OPPOSED:  Therriault, Hoffman, Martin, Larson, MacLean                       
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative Navarre MOVED to  ADOPT AMENDMENT CRA-2 (copy                 
  on file).  He explained that the amendment would delete $1.5                 
  million dollars in interagency receipts  for the shared fish                 
  tax.     Representative   Grussendorf   spoke  against   the                 
  amendment.  Representative  Hanley spoke  in support of  the                 
  amendment.    Co-Chair MacLean  noted  areas which  would be                 
  affected by the amendment.  Co-Chair MacLean OBJECTED to the                 
  motion to adopt Amendment CRA-2.  A roll call vote was taken                 
                                                                               
                               10                                              
                                                                               
                                                                               
  on the motion.                                                               
                                                                               
  IN FAVOR: Brown,  Hanley,   Navarre,  Parnell,   Therriault,                 
  Larson                                                                       
  OPPOSED:  Foster, Grussendorf, Hoffman, Martin, MacLean                      
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative Brown  MOVED  to ADOPT  AMENDMENT  CRA-3,  to                 
  delete  $22.8  thousand  dollars   for  deputy  commissioner                 
  position upgrade  (copy on  file).   She explained  that the                 
  amendment  would   maintain  the   position  as   a  special                 
  assistant.                                                                   
                                                                               
  EDGAR BLATCHFORD, COMMISSIONER,  DEPARTMENT OF COMMUNITY AND                 
  REGIONAL  AFFAIRS  stressed  the  importance  of the  deputy                 
  commissioner position.  Representative Hoffman spoke against                 
  the amendment.                                                               
                                                                               
  A  roll call vote was taken on the motion to adopt Amendment                 
  CRA-3.                                                                       
                                                                               
  IN FAVOR: Navarre,  Hanley,  Martin,   Parnell,  Therriault,                 
  MacLean,       Larson                                                        
  OPPOSED:  Brown, Foster, Grussendorf, Hoffman                                
                                                                               
  The MOTION PASSED (7-4).                                                     
                                                                               
  Representative Brown MOVED to ADOPT AMENDMENT CRA-4 (copy on                 
  file).  She explained that the  amendment would restore to a                 
  10 percent  reduction the  designated grant  for the  Alaska                 
  Special  Olympics.   She MOVED  to AMEND Amendment  CRA-4 to                 
  change  the  funding  source  to  the  Mental  Health  Trust                 
  Account.    There being  NO  OBJECTION, it  was  so ordered.                 
  There being  NO OBJECTION,  Amendment CRA-4  was adopted  as                 
  amended.                                                                     
                                                                               
  Representative Brown MOVED to ADOPT AMENDMENT CRA-5 (copy on                 
  file).  She noted that the amendment would add $5.6 thousand                 
  dollars to the designated grant for the Korean Community  of                 
  Anchorage, Inc.  A roll call vote was taken on the motion.                   
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Parnell                      
  OPPOSED:  Foster,  Hanley,   Martin,  Therriault,   MacLean,                 
  Larson                                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative  Brown  MOVED to  ADOPT  AMENDMENT  CRA-6, on                 
  behalf of Representative Ulmer (copy on file).                               
                                                                               
  (Tape Change, HFC 93-59, Side 1)                                             
                                                                               
                               11                                              
                                                                               
                                                                               
  REPRESENTATIVE FRAN ULMER spoke in support of Amendment CRA-                 
  6.  She noted  that the amendment would restore  funding for                 
  Perseverance Theatre's designated  grant from a  30 to a  10                 
  percent  reduction.   She  noted  that the  designated grant                 
  funds a  work  training  program  that  employs  individuals                 
  around the state.                                                            
                                                                               
  Representative  Brown noted that  the adoption  of Amendment                 
  CRA-1 added $7.3 thousand  dollars for Perseverance Theatre.                 
  Representative  Brown  MOVED  to  AMEND  Amendment  CRA-6 by                 
  deleting $7.3 thousand  dollars.  There being  NO OBJECTION,                 
  it was so ordered.                                                           
                                                                               
  A roll  call vote was taken on the motion to adopt Amendment                 
  CRA-6 as amended.                                                            
                                                                               
  IN FAVOR: Brown, Foster, Grussendorf, Navarre                                
  OPPOSED:  Hanley,  Hoffman,  Martin,   Parnell,  Therriault,                 
  MacLean,       Larson                                                        
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Brown MOVED to ADOPT AMENDMENT CRA-7 (copy on                 
  file).   Amendment CRA-7  was by  request of  Representative                 
  Davies.                                                                      
                                                                               
  REPRESENTATIVE  JOHN  DAVIES  explained  that the  amendment                 
  would restore funding for  the Fairbanks Native  Association                 
  employment  program.     He  noted  that  the   program  was                 
  previously funded under the STEP Program.                                    
                                                                               
  Representative Therriault spoke in support of the amendment.                 
  He suggested that  the program could  continue to be  funded                 
  through the STEP  Program.  He  asked that the amendment  be                 
  HELD open for further information.  Amendment CRA-7 was HELD                 
  open.                                                                        
                                                                               
  Representative Hoffman  MOVED to ADOPT  AMENDMENT CRA-8,  to                 
  appropriate $25.2 thousand  dollars to the Bristol  Bay Area                 
  Health Corporation for a water safety program.                               
                                                                               
  Co-Chair Larson  MOVED to  AMEND Amendment  to insert  $22.5                 
  thousand dollars which would reflect a 10 percent reduction.                 
  There being NO  OBJECTION, it was so  ordered.  A roll  call                 
  vote was taken  on the  motion to adopt  Amendment CRA-8  as                 
  amended.                                                                     
                                                                               
  IN FAVOR: Brown,  Foster,  Grussendorf,   Hoffman,  Navarre,                 
  Parnell,       MacLean                                                       
  OPPOSED:  Therriault, Hanley, Larson                                         
                                                                               
                                                                               
                               12                                              
                                                                               
                                                                               
  Representative Martin was not present for the vote.                          
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  Representative  Brown, on  behalf  of Representative  Brice,                 
  MOVED  to  ADOPT  AMENDMENT  CRA-9  (copy  on  file).    She                 
  explained  that  the amendment  would  sustain the  level of                 
  child care grants paid to child care providers.                              
                                                                               
  Representative Ulmer  spoke in  support of  Amendment CRA-9.                 
  She noted that child care providers in Alaska make less than                 
  garbage  collectors.     She  stressed  the   importance  of                 
  providing quality care for Alaska's children.                                
                                                                               
  Co-Chair  MacLean  stated   that  interagency  receipts  and                 
  federal funding for the Child Care component were reduced by                 
  $37.9  thousand  dollars in  the  FY 94  Governor's proposed                 
  budget.                                                                      
                                                                               
  Mr.  Henderson clarified  that the additional  funding would                 
  increase grants to $22 dollars per child.                                    
                                                                               
  A roll call vote was taken on  the motion to adopt Amendment                 
  CRA-9.                                                                       
                                                                               
  IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre                       
  OPPOSED:  Hanley,  Martin,  Parnell,   Therriault,  MacLean,                 
  Larson                                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative Brown  WITHDREW  AMENDMENT  CRA-10  (copy  on                 
  file).                                                                       
                                                                               
  Representative Brown MOVED to ADOPT  AMENDMENT CRA- 11 (copy                 
  on file).  She stressed that  the intent of Amendment CRA-11                 
  is to fund the Day  Care Assistance Program at the  level of                 
  demand.  She maintained that  the current funding level will                 
  not cover all those eligible for the program.                                
                                                                               
  Mr. Henderson stated that if a shortfall is anticipated then                 
  a wait list would be developed.  The program is needs based.                 
  The majority of participants are at the lowest income level.                 
                                                                               
                                                                               
  Co-Chair MacLean pointed  out that there  is a $2.5  million                 
  dollar lapse from FY  93.  She  maintained that a wait  list                 
  does not currently exist.                                                    
                                                                               
  A roll call vote was taken  on the motion to adopt Amendment                 
  CRA-11 as.                                                                   
                                                                               
                                                                               
                               13                                              
                                                                               
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Foster,  Hoffman,  Martin,   Parnell,  Therriault,                 
  MacLean,       Larson                                                        
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative  Brown MOVED to  ADOPT INTENT  LANGUAGE CRA-A                 
  (copy  on file).   Intent  Language CRA-A  was  requested by                 
  Representative Brice.  Representative Brice spoke in support                 
  of the intent language.  He  stated that the intent language                 
  would  direct  the  Department  of  Community  and  Regional                 
  Affairs  to   request  a   supplement  if   the  per   child                 
  reimbursement  for child  care  providers  falls  below  $25                 
  dollars.                                                                     
                                                                               
  Mr. Henderson noted that the  current level of reimbursement                 
  is below $25 dollars.  He clarified that the Department pays                 
  $20 dollars per child  for the first 9 months  of the fiscal                 
  year.  Payments are increased  during the last three  months                 
  of  the  fiscal year  to maintain  a  yearly average  of $22                 
  dollars per day per child.                                                   
                                                                               
  Representative Brown  suggested that the  intent language be                 
  amended to  $22 dollars per  child per day.   Representative                 
  MOVED  to AMEND Intent Language CRA-A, to delete "$25.0" and                 
  insert "$22.0" dollars.  Representative Martin spoke against                 
  the intent language.   There being  NO OBJECTION, it was  so                 
  ordered.                                                                     
                                                                               
  A roll  call vote  was taken on  the motion to  adopt Intent                 
  Language CRA-A as amended.                                                   
                                                                               
  IN FAVOR: Brown,  Foster,  Grussendorf,   Hoffman,  Navarre,                 
  MacLean                                                                      
  OPPOSED:  Hanley, Martin, Parnell, Therriault, Larson                        
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  (Tape Change, HFC 93-59, Side 2)                                             
                                                                               
  DEPARTMENT OF NATURAL RESOURCES                                              
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the  Department of  Natural  Resources component  #431, Land                 
  Development, reference #5000 (copy on file).                                 
                                                                               
  NICO  BUS,  DIRECTOR, DIVISION  OF  ADMINISTRATIVE SERVICES,                 
  DEPARTMENT OF NATURAL RESOURCES explained that the amendment                 
  is a realignment of funding and positions to adequately fund                 
  contractual  obligations.   There  being  NO OBJECTION,  the                 
                                                                               
                               14                                              
                                                                               
                                                                               
  Governor's amendment for component #431, reference #5000 was                 
  adopted.                                                                     
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the  Department of  Natural Resources  component #431,  Land                 
  Development,  reference  #5001  (copy  on  file).   Mr.  Bus                 
  explained  that  the  amendment  reflects  capital  projects                 
  personal  services.    Members  discussed  the  practice  of                 
  indicating personal  services costs associated  with capital                 
  projects in the  agency's budget.  There being NO OBJECTION,                 
  it was so ordered.                                                           
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the  Department  of Natural  Resources component  #431, Land                 
  Development,  reference  #5002  (copy  on  file).   Mr.  Bus                 
  clarified that  the  amendment would  delete two  positions.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department  of Natural  Resources  component #431,  Land                 
  Development, reference #5003 (copy on file).  Mr. Bus stated                 
  that  the   amendment  would  transfer  positions  from  the                 
  Division  of  Land,   land  disposal  to  the   Division  of                 
  Agriculture for work on agriculture land parcels.                            
                                                                               
  RAGA  ELIM,   SPECIAL  ASSISTANT,   DEPARTMENT  OF   NATURAL                 
  RESOURCES testified  that the  transfer does  not reflect  a                 
  change in the  Department's philosophy of land disposal.  He                 
  stressed  that  the  transfer will  allow  personnel already                 
  working on land  disposal for agricultural disposal  to work                 
  in  the appropriate  division.   Co-Chair Larson  emphasized                 
  that the positions  will continue  to do the  same job  that                 
  they currently perform.                                                      
                                                                               
  Representative  Brown  OBJECTED  to  the   motion  to  adopt                 
  Amendment #421, reference #5003.  A roll call vote was taken                 
  on the motion.                                                               
                                                                               
  IN FAVOR: Grussendorf,  Hoffman,  Foster,  Martin,  Parnell,                 
            Therriault, MacLean, Larson                                        
  OPPOSED:  Brown, Hanley                                                      
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (8-2).                                                     
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the   Department  of   Natural  Resources   component  #455,                 
  Agriculture  Development  (copy  on  file).   Representative                 
  Brown OBJECTED.  A roll call vote was taken on the motion.                   
                                                                               
  IN FAVOR: Hoffman,  Grussendorf,  Hanley,  Martin,  Parnell,                 
                                                                               
                               15                                              
                                                                               
                                                                               
            Therriault, Larson                                                 
  OPPOSED:  Foster, Brown, MacLean                                             
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  Co-Chair  Larson  MOVED  to ADOPT  the  Governor's technical                 
  amendments   for  the   Department   of  Natural   Resources                 
  components #439, #443,  #916, #1031,  #1191, #427, #802  and                 
  explanation of #442.                                                         
                                                                               
  Mr. Jones explained  that the  amendment for component  #442                 
  would change  a PCN  from 100  percent federal  funds to  20                 
  percent federal funds  and 80 percent  CIP.  The  position's                 
  funding was inadequately reflected.                                          
                                                                               
  There   being   NO  OBJECTION,   the   Governor's  technical                 
  amendments   for  the   Department   of  Natural   Resources                 
  components #439, #443,  #916, #1031,  #1191, #427, #802  and                 
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the Department  of Natural Resources  component #452,  Parks                 
  Management  (copy on  file).   Mr.  Bus  explained that  the                 
  amendment would establish a project  manager for the Federal                 
  Abandoned Mine Reclamation  Project.  Representative  Foster                 
  OBJECTED.  A roll call vote was taken on the motion.                         
                                                                               
  IN FAVOR: Brown, Hanley, Martin, Therriault, Larson                          
  OPPOSED:  Foster, Hoffman, Grussendorf, Parnell, Maclean                     
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Co-Chair Larson MOVED to ADOPT  the Governor's Amendment for                 
  the  Department of  Natural  Resources component  #1882, Oil                 
  Spill  Response   Fund  (copy  on  file).     Representative                 
  Therriault requested that the  amendment be held open.   The                 
  Governor's Amendment for the Department of Natural Resources                 
  component #1882, Oil Spill Response Fund was HELD open.                      
                                                                               
  HB 55 was HELD in Committee.                                                 
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 6:12 p.m.                                           
                                                                               
                                                                               
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