Legislature(1993 - 1994)

03/30/1993 01:40 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 30, 1993                                        
                            1:40 p.m.                                          
                                                                               
  TAPE HFC 93-82, Side 1, #000 - end.                                          
  TAPE HFC 93-82, Side 2, #000 - end.                                          
  TAPE HFC 93-83, Side 1, #000 - end.                                          
  TAPE HFC 93-83, Side 2, #000 - end.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 1:40 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                                                                 
                                                                               
  Mike Greany,  Director, Legislative Finance  Division; Frank                 
  Turpin,  Commissioner,  Department  of   Transportation  and                 
  Public Facilities; Jan Hansen, Director,  Division of Public                 
  Assistance, Department of Health and Social Services; Janice                 
  Adair, Assistant Commissioner,  Department of  Environmental                 
  Conservation;  Bruce  Botelho,  Assistant Attorney  General,                 
  Department  of   Law;   Karen   Rehfeld,   Fiscal   Analyst,                 
  Legislative  Finance Division;  Theodore A.  Mala, MD,  MPH,                 
  Commissioner, Department of Health and Social Services.                      
                                                                               
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  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.                                       
                                                                               
  HB 67     "An Act  relating to eligibility for  and payments                 
            of  public   assistance;  and  providing   for  an                 
            effective date."                                                   
                                                                               
            HB 67 was HELD in Committee.                                       
                                                                               
                                1                                              
                                                                               
                                                                               
  HOUSE BILL NO. 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."                 
                                                                               
  UNIVERSITY OF ALASKA                                                         
                                                                               
  Co-Chair  Larson  MOVED  to ADOPT  AMENDMENT  UA-7  (copy on                 
  file).   He explained  that the  Amendment would use  $150.0                 
  thousand  dollars of  the  Science and  Technology Endowment                 
  Fund for a seed potato project.                                              
                                                                               
  KAREN  REHFELD,  FISCAL  ANALYST,  DIVISION  OF  LEGISLATIVE                 
  FINANCE observed  that there  is $3  million dollars  in the                 
  University of Alaska's budget for grants from the Fund.  She                 
  noted that  the estimated revenue  from the Fund  would just                 
  cover  the appropriations from the Fund.  from the clarified                 
  that funding for  Amendment UA-7 would increase  grants from                 
  the Science and Technology Fund to $3,150.0 million dollars.                 
                                                                               
                                                                               
  Representative Martin MOVED  to AMEND the motion  to specify                 
  that the  $150.0 thousand dollar  grant for the  seed potato                 
  project  will  be allocated  from  the $3.0  million dollars                 
  appropriated for University  of Alaska grants.   There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  Co-Chair Larson MOVED  to ADOPT  AMENDMENT UA-7 as  amended.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Representative  Hanley  MOVED  to  RESCIND  the  Committee's                 
  action in  adopting UA-1  (copy on  file).   There being  NO                 
  OBJECTION, it was so ordered.  UA-1 was NOT ADOPTED.                         
                                                                               
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS                                 
                                                                               
  Representative  Foster  MOVED  to  RESCIND  the  Committee's                 
  action in adopting  CRA-3, to delete $22.8  thousand dollars                 
  for pay increase for a Deputy Commissioner position (copy on                 
  file).   There  being  NO  OBJECTION,  it  was  so  ordered.                 
  Representative Brown MOVED to ADOPT AMENDMENT CRA-3.  A roll                 
  call vote was taken on the motion.                                           
                                                                               
  IN FAVOR:      Brown, Grussendorf, Navarre                                   
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 Hoffman, MacLean, Larson                                      
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  Co-Chair MacLean MOVED to RESCIND  the Committee's action in                 
  adopting Amendment  DOE-2 (copy  on file).   There  being NO                 
  OBJECTION, it  was so  ordered.   Co-Chair MacLean  provided                 
  members with  a new  Amendment DOE-2  (copy on  file).   She                 
  MOVED  to ADOPT  AMENDMENT  DOE-2.   Representative  Navarre                 
  OBJECTED.  A roll call vote was taken on the motion.                         
                                                                               
  IN FAVOR: Brown,  Grussendorf,   Hoffman,  Foster,   Hanley,                 
                 Martin, Parnell, Therriault, MacLean, Larson                  
  OPPOSED:  Navarre                                                            
                                                                               
  The MOTION PASSED (10-1).                                                    
                                                                               
  DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                           
                                                                               
  Co-Chair Larson provided members with  a new Amendment DOT-5                 
  (copy on  file).  He  explained Amendment  DOT-5.   Co-Chair                 
  Larson  MOVED  to  ADOPT  AMENDMENT  DOT-5.   Representative                 
  Navarre  OBJECTED.   Representative Navarre  noted that  the                 
  amendment included  a  $200.0  thousand  dollar  unallocated                 
  reduction in maintenance and operations.                                     
                                                                               
  FRANK TURPIN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND                 
  PUBLIC  FACILITIES noted  that  the  amendment represents  a                 
  heavy  administrative  reduction.    He  stressed  that  the                 
  Department's  administrative  operations have  been severely                 
  reduced.   Representative  Navarre asserted  that reductions                 
  will result in less efficiencies.                                            
                                                                               
  Commissioner Turpin expressed  concern with the Department's                 
  ability  to absorb  the $200.0  thousand dollar  unallocated                 
  reduction.    Representative  Grussendorf  noted  that   the                 
  Department's budget has been previously diminished.                          
                                                                               
                                                                               
  Co-Chair  Larson MOVED  to AMEND  the  motion to  reduce the                 
  unallocated reduction from $200.0 thousand dollars to $100.0                 
  thousand  dollars.   There  being NO  OBJECTION,  it was  so                 
  ordered.                                                                     
                                                                               
  Representative Navarre MOVED  to AMEND the motion  to delete                 
  the $100.0 thousand dollar unallocated reduction included in                 
  DOT-5.  A roll call vote was taken on the motion.                            
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Commissioner Turpin noted that there will  be jobs lost as a                 
  result  of  the  adoption  of  DOT-5.     He  stressed  that                 
                                                                               
                                3                                              
                                                                               
                                                                               
  administration has been reduced over the last two years.                     
                                                                               
  Co-Chair  Larson MOVED  to INCORPORATE  AMENDMENT DOT-5,  as                 
  amended, into HB  55.   A roll  call vote was  taken on  the                 
  motion.                                                                      
                                                                               
  IN FAVOR: Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
  OPPOSED:  Brown, Grussendorf, Hoffman, Navarre                               
                                                                               
  The MOTION PASSED (7-4).                                                     
                                                                               
  Representative  Navarre  MOVED  to  RESCIND the  Committee's                 
  action in failing to  adopt Amendment DOT-2 (copy on  file).                 
  He  asserted  that  the  failure   to  provide  funding  for                 
  maintenance and operations of new  facilities will result in                 
  greater deferred  maintenance costs.   A roll call  vote was                 
  taken on the motion.                                                         
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Co-Chair Larson MOVED  to ADOPT  INTENT DOT-B:   "It is  the                 
  intent of the  Legislature that  General Fund reductions  to                 
  the  Alaska Marine Highway system  be taken from travel, per                 
  diem,  dues to  the Alaska  Visitors  Association, education                 
  fees, and training costs".  Co-Chair MacLean OBJECTED.                       
                                                                               
  JOHN  BITNEY,  LEGISLATIVE   STAFF,  REPRESENTATIVE   LARSON                 
  explained that  the intent language would  replace Amendment                 
  6.                                                                           
                                                                               
  A  roll call vote  was taken on  the motion to  adopt Intent                 
  Language DOT-B.                                                              
                                                                               
  IN FAVOR: Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
  OPPOSED:  Brown, Grussendorf, Hoffman, Navarre                               
                                                                               
  The MOTION PASSED (7-4).                                                     
                                                                               
  DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                     
                                                                               
  Representative Therriault  MOVED to RESCIND  the Committee's                 
  action in  adopting  Amendment DEC-6  (copy  on file).    He                 
  indicated  his  intention  to  transfer   the  funding  from                 
  contaminated site  cleanup to  the Near Shore  Demonstration                 
  Project.  Representative Navarre OBJECTED.                                   
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
  (Tape Change, HFC 93-83, Side 1)                                             
                                                                               
  Representative   Navarre  conceded   that  the   Near  Shore                 
  Demonstration Project has merit.  He emphasized that funding                 
  for the Project should  not be taken from contaminated  site                 
  cleanup.  A roll call vote was taken on the motion.                          
                                                                               
  IN FAVOR: Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 Larson                                                        
  OPPOSED:  Brown, Grussendorf, Hoffman, Navarre, MacLean                      
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative Therriault MOVED to AMEND  Amendment DEC-6 by                 
  transferring $100.0 thousand dollars in contractual services                 
  OHSSRF to the Near Shore Project.  There being NO OBJECTION,                 
  it was so ordered.                                                           
                                                                               
  Representative Hoffman MOVED to ADOPT AMENDMENT DEC-22  into                 
  HB 55 (copy  on file).   He explained  that $440.0  thousand                 
  dollars  would  be   used  for  Koyukuk  School   oil  spill                 
  evaluation and cleanup.                                                      
                                                                               
  REPRESENTATIVE IRENE  NICHOLIA explained that there  is fuel                 
  spill contamination as a result of a faulty fuel line.   The                 
  contamination  is  75  feet  from  the  village  safe  water                 
  facility.   The estimated  cost of site  evaluation is $40.0                 
  thousand  dollars.  The cleanup  cost is estimated at $400.0                 
  thousand dollars.                                                            
                                                                               
  Representative  Brown MOVED  to AMEND  Amendment DEC-22,  to                 
  insert  after "for"  "the Koyukuk  School".  There  being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Co-Chair  MacLean  asked  for  information  regarding  other                 
  contaminated sites within school districts.                                  
                                                                               
  JANICE   ADAIR,   DEPUTY    COMMISSIONER,   DEPARTMENT    OF                 
  ENVIRONMENTAL CONSERVATION noted that there is an  emergency                 
  situation at the  Kaltag school.   She pointed out that  the                 
  Kaltag school will fail off the Department's list of cleanup                 
  sites due to a  lack of funding.  She  further discussed the                 
  Koyukuk   site  contamination.      She   noted   that   the                 
  contamination is the result of a broken fuel line.  Co-Chair                 
  Larson noted that the actual cost of cleanup is unknown.                     
                                                                               
  Representative Therriault asked if Spill Reserve money could                 
  be  spent for the  Koyukuk contaminated  site cleanup.   Ms.                 
  Adair noted that  expenditures of the Spill  Reserve require                 
  an imminent and substantial  threat to the public health  or                 
  environment.   She felt that  the project would  not qualify                 
  until it was closer to the water.  She suggested the problem                 
                                                                               
                                5                                              
                                                                               
                                                                               
  be addressed before the problem becomes an emergency.                        
                                                                               
  Representative  Therriault   spoke  in  opposition   to  the                 
  amendment.  Representative Brown emphasized that schools are                 
  involved.                                                                    
                                                                               
  Co-Chair Larson suggested  that the amendment be  amended to                 
  appropriate  $40.0  thousand  dollars  from  the  Mitigation                 
  Account to the Department of Environmental  Conservation for                 
  the Koyukuk  oil spill  evaluation.   Representative Hoffman                 
  stressed that if the evaluation demonstrates that the oil is                 
  approaching  the water  source  that further  appropriations                 
  would be a year away.  He pointed out that  a new well would                 
  need to be drilled if the oil is not contained.  He observed                 
  that if the appropriation  is made and the money  not needed                 
  that it would  lapse.   Ms. Adair clarified  that 470  funds                 
  could not be used to drill a new well.                                       
                                                                               
  Representative Hanley  noted that  if the  spill becomes  an                 
  imminent danger the Department of Environmental Conservation                 
  can go in and cleanup the spill.  Ms. Adair agreed and added                 
  that  the  Department would  then  cost recover  against the                 
  school district.                                                             
                                                                               
  Co-Chair  Larson reiterated  the  motion to  ADOPT AMENDMENT                 
  DEC-22.  A roll call vote was taken on the motion.                           
                                                                               
  IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre                       
  OPPOSED:  Hanley,  Martin,  Parnell,   Therriault,  MacLean,                 
                 Larson                                                        
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative Brown provided members  with AMENDMENT DEC-25                 
  (copy  on file).    She explained  that the  amendment would                 
  fund  contaminated site cleanup  at the Kaltag  school.  She                 
  noted that the problem began in 1986.  She observed that the                 
  Department  recommended  that  $150.0  thousand  dollars  be                 
  appropriated for the cleanup.                                                
                                                                               
  Representative Hoffman MOVED to AMEND  the motion to include                 
  $40.0  thousand  dollars  from  the  Mitigation  Account  to                 
  Department  of  Environmental Conservation  for contaminated                 
  site  evaluation  for the  Koyukuk  School district.   There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Co-Chair  MacLean   MOVED  to  AMEND  Amendment   DEC-25  to                 
  appropriate   to  the  Yukon  Koyukuk  School  District  for                 
  contaminated site evaluation:   $60.0  thousand dollars  for                 
  the Kaltag school and $40.0 thousand dollars for the Koyukuk                 
  school.  There being NO OBJECTION, it was so ordered.                        
                                                                               
                                                                               
                                6                                              
                                                                               
                                                                               
  OIL HAZARDOUS SUBSTANCE  RELEASE RESPONSE FUND  INTER-AGENCY                 
  RECEIPTS (OHSSRF)                                                            
                                                                               
  Representative  Therriault  provided members  with AMENDMENT                 
  DEC-24 detailing allocations of  OHSSRF to agency's programs                 
  (Attachment 1).                                                              
                                                                               
  (Tape Change, HFC 93-83, Side 1)                                             
                                                                               
  BRUCE BOTELHO,  DEPUTY ATTORNEY  GENERAL, DEPARTMENT  OF LAW                 
  discussed OHSSRF  appropriations to the  Department of  Law.                 
  He explained that the Department is counsel for Exxon Valdez                 
  litigation,  assists  with  cost  recovery  and  is  general                 
  counsel for the Department of Environmental Conservation.                    
                                                                               
  Representative Therriault MOVED  to ADOPT AMENDMENT  DEC-24.                 
  Representative Brown OBJECTED.  Representative Navarre noted                 
  that Amendment  DEC-24 will reduce  the Citizen's  Oversight                 
  Council.                                                                     
                                                                               
  Co-Chair Larson suggested  that Amendment DEC-24 be  adopted                 
  with the understanding  that the  Committee can address  the                 
  Citizen's Oversight  Council  during  deliberations  on  the                 
  Legislature's budget.                                                        
                                                                               
  Representative Brown referred to the lack of maintenance for                 
  repeater stations built during the oil spill.                                
                                                                               
  A roll call vote was taken on the  motion to adopt AMENDMENT                 
  DEC-24.                                                                      
                                                                               
  IN FAVOR: Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
  OPPOSED:  Brown, Grussendorf, Hoffman, Navarre                               
                                                                               
  The MOTION PASSED (7-4).                                                     
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
  Representative Hanley  MOVED to ADOPT a BUDGET  NOTE for the                 
  Department  of Health and Social Services, Public Assistance                 
  component:  $350.0 thousand dollar  of this allocation is to                 
  provide job training.   There being NO OBJECTION, it  was so                 
  ordered.                                                                     
                                                                               
  Representative  Hanley  MOVED  to  RESCIND  the  Committee's                 
  action in adopting Amendment DHSS-6.  Representative Navarre                 
  OBJECTED.  Representative Hanley discussed Amendment DHSS-6.                 
  Representative    Navarre    WITHDREW     HIS    OBJECTIONS.                 
  Representative Grussendorf noted that the Committee  retains                 
  concerns regarding services provided by Cordova House.                       
                                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  THEODORE A.  MALA, MD.,  COMMISSIONER, DEPARTMENT OF  HEALTH                 
  AND SOCIAL  SERVICES  stressed the  importance of  providing                 
  mental  health services to  inmates.   He asserted  that the                 
  problem  is  within  the  structure  of  the  Department  of                 
  Corrections.                                                                 
  There being NO OBJECTION, Amendment DHSS-6 was rescinded.                    
                                                                               
  Representative  Hanley  MOVED  to  RESCIND  the  Committee's                 
  action in  adopting  Amendment DHSS-22.   Commissioner  Mala                 
  noted  that  the  amendment  would  deny transfer  of  $39.5                 
  thousand dollars to  the Department  from the Mental  Health                 
  Trust Income Account.  He emphasized that the Department has                 
  sustained over $150.0 thousand dollars in cuts.  He observed                 
  that the position in question  responds to constituent calls                 
  in Anchorage.                                                                
                                                                               
  Representative  Brown  OBJECTED  to the  motion  to  rescind                 
  Amendment  DHSS-22.   A  roll  call  vote was  taken  on the                 
  motion.                                                                      
                                                                               
  IN FAVOR: Hanley,  Martin,  Parnell,   Therriault,  MacLean,                 
                 Larson                                                        
  OPPOSED:  Brown, Hoffman, Navarre                                            
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  Representative Brown MOVED to RESCIND the Committee's action                 
  in failing  to adopt  Amendment DHSS-9  as amended:  Restore                 
  $52.6 thousand dollars  to the Council on  Domestic Violence                 
  and Sexual Assault  (copy on  file).  Representative  Hanley                 
  OBJECTED.  A roll call vote was taken on the motion.                         
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,  Navarre,  Parnell,                 
                 MacLean                                                       
  OPPOSED:  Foster, Hanley, Martin, Therriault, Larson                         
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative  Brown  MOVED  to  ADOPT  AMENDMENT   DHSS-9.                 
  Representative  Hanley OBJECTED.  A roll call vote was taken                 
  on the motion.                                                               
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,  Navarre,  Parnell,                 
                 MacLean                                                       
  OPPOSED:  Foster, Hanley, Martin, Therriault, Larson                         
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative  Martin  MOVED  to ADOPT  AMENDMENT  DHSS-21:                 
  Delete  $448,945 thousand  dollars from  the General  Relief                 
                                                                               
                                8                                              
                                                                               
                                                                               
  Medical component.   He explained that federal  funding will                 
  be available for funding of abortions.  Representative Brown                 
  questioned  if  federal  dollars  will  be available.    She                 
  requested that Amendment DHSS-21 be HELD open.                               
                                                                               
  Amendment DHSS-21 was HELD open.                                             
                                                                               
  DEPARTMENT OF NATURAL RESOURCES                                              
                                                                               
  Co-Chair MacLean provided members with replacement AMENDMENT                 
  DNR-8  (copy on  file).   She explained  that the  amendment                 
  would allocated $75.9 thousand dollar for state  fairs.  Co-                 
  Chair MacLean noted that the Interior Rivers Fair and Chevak                 
  Tundra Fest are new fairs.   Co-Chair MacLean MOVED to ADOPT                 
  AMENDMENT  DNR-8.   There  being  NO  OBJECTION, it  was  so                 
  ordered.                                                                     
                                                                               
  DEPARTMENT OF REVENUE                                                        
                                                                               
  Representative  Foster MOVED to ADOPT AMENDMENT REV-11 (copy                 
  on file).  The amendment would add four investigators to the                 
  Alcohol Beverage Control Board,  $279.0 thousand dollars  in                 
  program  receipts.   There  being NO  OBJECTION,  it was  so                 
  ordered.                                                                     
                                                                               
  OFFICE OF THE GOVERNOR                                                       
                                                                               
  Representative  Therriault  MOVED to  ADOPT  INTENT LANGUAGE                 
  GOV-B (copy on file).                                                        
                                                                               
  (Tape Change, HFC 93-83, Side 2)                                             
                                                                               
  There being NO OBJECTION, INTENT LANGUAGE GOV-B was adopted.                 
                                                                               
  LEGISLATURE                                                                  
                                                                               
  Co-Chair MacLean   MOVED to ADOPT AMENDMENT LEG-1, to delete                 
  $237.3 thousand dollars for  the Citizen's Oversight Council                 
  on   Oil   and   Hazardous   Substance   (copy   on   file).                 
  Representative Navarre OBJECTED.   He  stressed the need  to                 
  continue  the  Citizen's  Oversight Council.  Representative                 
  Brown   noted   that   the   Department   of   Environmental                 
  Conservation's budget has been severely reduced.                             
                                                                               
  A roll call vote was taken on  the motion to adopt Amendment                 
  LEG-1.                                                                       
                                                                               
  IN FAVOR: Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 Larson                                                        
  OPPOSED:  Brown, Grussendorf, Hoffman, Navarre, MacLean                      
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
                                9                                              
                                                                               
                                                                               
  HB 55 was HELD in Committee.                                                 
  HOUSE BILL NO. 67                                                            
                                                                               
       "An Act  relating to  eligibility for  and payments  of                 
       public  assistance;  and  providing  for  an  effective                 
       date."                                                                  
                                                                               
  Representative  Hanley  MOVED  to  RESCIND  the  Committee's                 
  action  in  reporting  CSHB  67   (FIN)  out  of  Committee.                 
  Representative Brown OBJECTED.  A  roll call vote was  taken                 
  on the motion.                                                               
                                                                               
  IN FAVOR: Grussendorf,  Foster,  Hanley,   Martin,  Parnell,                 
                 Therriault, MacLean, Larson                                   
  OPPOSED:  Brown, Hoffman, Navarre                                            
                                                                               
  The MOTION PASSED (8-3).                                                     
                                                                               
  A roll  call vote was taken on the  motion to report CSHB 67                 
  (FIN) from Committee.                                                        
                                                                               
  IN FAVOR: Grussendorf, Brown, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative  Hanley  MOVED  to  RESCIND  the  Committee's                 
  action  in adopting  Amendment 1 to  HB 67.   Representative                 
  Brown OBJECTED.   Representative Brown  emphasized the  need                 
  for COLA adjustments.  The amendment would suspend the COLA.                 
                                                                               
                                                                               
  Representative Hoffman spoke  is support of Amendment 1.  He                 
  asserted that repealing the COLA for Adult Public Assistance                 
  (APA) and Aid to Families with Dependent  Children (AFDC) is                 
  "one of the most regressive things we can  do to poor people                 
  in the state."                                                               
                                                                               
  Co-Chair Larson observed that Alaska is  the only state that                 
  has  a  COLA  clause  for  these programs.    Representative                 
  Hoffman noted that if Amendment 1 is not adopted legislative                 
  action will be needed in the future to increase  APA or AFDC                 
  payments.                                                                    
                                                                               
  Representative  Brown  provided members  with  a Legislative                 
  Research Agency memorandum regarding  the state of  Alaska's                 
  children, dated  3/22/93 (Attachment  2).   She pointed  out                 
  that there are  45,000 children in  Alaska living below  the                 
                                                                               
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  poverty level.   She  observed that  27 percent of  Alaska's                 
  preschool children live in poverty.  She maintained that the                 
  programs support children.                                                   
                                                                               
  Representative Hoffman  provided  members  with  a  3/26/93,                 
  memorandum  from  Terri   Lauterbach,  Legislative   Counsel                 
  stating that CSHB 67 (JUD) would  not allow COLA payments to                 
  be    made    through    appropriation    (Attachment    3).                 
  Representative Grussendorf spoke against repealing the COLA.                 
                                                                               
  A  roll  call  vote  was  taken  on the  motion  to  RESCIND                 
  Amendment 1, adopted on 3/27/93.                                             
                                                                               
  IN FAVOR: Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
  OPPOSED:  Brown, Grussendorf, Hoffman, Navarre                               
                                                                               
  The MOTION PASSED (7-4).                                                     
                                                                               
  Representative  Brown provided members with a substitute for                 
  Amendment 1 (copy on file).   Representative Brown MOVED  to                 
  ADOPT  AMENDMENT 1.    A roll  call vote  was  taken on  the                 
  motion.                                                                      
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  2                 
  (Attachment 4).  She explained that  Amendment 2 would set a                 
  floor for APA and AFDC payment  levels.  The COLA adjustment                 
  would automatically be installed if  AFDC and APA recipients                 
  fell below 70 percent of the federal poverty guideline.                      
                                                                               
  JAN  HANSEN,  DIRECTOR,  PUBLIC  ASSISTANCE,  DEPARTMENT  OF                 
  HEALTH AND SOCIAL SERVICES explained that it is necessary to                 
  specify the household size.  She explained that a two person                 
  household is at a higher percentage  of poverty than a three                 
  person household.  She suggested  that the amendment specify                 
  that when a household of two reach 70 percent of the poverty                 
  level than the COLA adjustment would be made.  She explained                 
  that COLAs are the same as  the poverty level increase.  She                 
  gave examples of COLA adjustments.  She noted that in 1992 a                 
  household  of  three  is at  77  percent  of  poverty and  a                 
  household of two is at 86 percent of poverty.                                
                                                                               
  Representative Brown MOVED  to AMEND AMENDMENT 2  to specify                 
  that when  a three person household reaches below 70 percent                 
  of the poverty level a  COLA adjustment would be made.   Co-                 
  Chair  Larson  suggested  that  the  amendment be  held  and                 
                                                                               
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  drafted be legal counsel.  Amendment 2 was held.                             
                                                                               
  HB 67 was HELD in Committee.                                                 
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 5:28 p.m.                                           
                                                                               
                                                                               
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