Legislature(1993 - 1994)
04/20/1993 01:40 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 20, 1993
1:40 p.m.
TAPE HFC 93-111, Side 2, #000 - end.
TAPE HFC 93-112, Side 1, #000 - end.
TAPE HFC 93-112, Side 2, #000 - end.
TAPE HFC 93-113, Side 1, #000 - 229.
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
Representative Davidson; Nancy Bear-Usera, Commissioner,
Department of Administration; Mead Treadwell, Deputy
Commissioner, Department of Environmental Conservation; Carl
L. Rosier, Commissioner, Department of Fish and Game;
Charles Cole, Attorney General, Department of Law; Jerome
Selby, Mayor, Kenai Peninsula Borough; Neil Johannsen,
Director, Division of Parks and Outdoor Recreation,
Department of Natural Resources; Chris Gates, Director,
Division of Economic Development, Department of Commerce and
Economic Development.
SUMMARY INFORMATION
HB 81 "An Act relating to the longevity bonus program."
CSHB 81 (FIN) was reported out of Committee with
"individual recommendations" and with a fiscal
impact note by the Department of Administration
and with a fiscal impact note by the Department of
Health and Social Services.
HB 167 "An Act relating to air quality control and the
prevention, abatement, and control of air
pollution; relating to civil and criminal
penalties, damages, and other remedies for air
quality control violations; clarifying the
definition of `hazardous substance' to include
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releases and threatened releases to the
atmosphere; amending the lien provisions relating
to the oil and hazardous substance release
response fund; relating to inspection and
enforcement powers of the Department of
Environmental Conservation; and providing for an
effective date."
CSHB 167 (FIN) was reported out of Committee with
a "do pass" recommendation and with a fiscal
impact note by the Department of Environmental
Conservation and with a fiscal impact note by the
Department of Law.
HB 269 "An Act making special appropriations for
restoration projects relating to the Exxon Valdez
oil spill and for oil spill response projects; and
providing for an effective date."
HB 269 was HELD in Committee.
HOUSE BILL NO. 81
"An Act relating to the longevity bonus program."
NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION
urged the Committee's support for the Governors proposal to
grandfather participants in at the current rate of $250
dollars with a three year phase down.
Commissioner Usera referred to the companion bill to HB 81,
CSSB 58 (FIN). She observed that the Administration has had
the long standing problem of constitutionality in developing
a phase out program. She noted that eligibility based on
age has been questioned by the courts. She discussed
amendments adopted in CSSB 58 (FIN) which have been endorsed
by the Administration. She pointed out that CSSB 58 (FIN)
uses the application date as the eligibility criteria. She
added that a severability clause was added to CSSB 58 (FIN)
to assure that if a portion of the bill is found to be
unconstitutional other portions of the bill would not be
overturned.
Co-Chair Larson provided members with Work Draft, 8-GH1022-J
(Attachment 1). He explained that the Work Draft extends
the phase out over a longer period than CSHB 81 (STA). Co-
Chair Larson MOVED to ADOPT Work Draft, 8-GH1022-J. There
being NO OBJECTION, it was so ordered.
Co-Chair Larson compared CSHB 81 (FIN) with CSHB 81 (STA).
He reviewed provisions contained in CSHB 81 (STA):
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* End new enrollment with those who turn 65 before
January 1, 1994;
* Bonus payments would be set at $225 dollars.
He reviewed provisions of CSHB 81 (FIN):
* End new enrollment with those who turn 65 before
January 1, 1996;
Bonus payments would be:
* $225, if the person reached the age of 65 before
January 1, 1994;
* $150, if the person reached the age of 65 before
January 1, 1995;
* $100, if the person reached the age of 65 before
January 1, 1996;
Co-Chair Larson compared CSHB 81 (FIN) with CSSB 58 (FIN).
Co-Chair Larson MOVED to AMEND CSHB 81 (FIN) by deleting
"person reached the age of 65" and inserting "person's
application was submitted" on page 1, lines 8 - 13. There
being NO OBJECTION, it was so ordered.
Commissioner Usera explained that eligibility will be based
on the date of application not age. She gave the example of
a 76 year old person who moves to the state and applies for
the first time after January 1, 1995 but before January 1,
1996. The individual would be eligible for the same amount
as other first time participants applying at that time
($100).
Representative Hanley MOVED to ADOPT page 2, lines 2 - 31
and page 3, lines 1 and 2, the language contained in CSSB 58
(FIN) with the following amendments to that language:
Delete "1997" insert "1996" on page 2, lines 6 and 28;
delete "(4)" insert "(3)", page 2, line 7. There being NO
OBJECTION, the amendments were incorporated into CSHB 81
(FIN).
Representative Hanley MOVED to report CSHB 81 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. Representative Hoffman OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Brown, Grussendorf, Hanley, Martin, Parnell,
Therriault, MacLean, Larson
OPPOSED: Hoffman, Foster
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Representative Navarre was not present for the vote.
The MOTION PASSED (8-2).
CSHB 81 (FIN) was reported out of Committee with "individual
recommendations" and with a fiscal impact note by the
Department of Administration and with a fiscal impact note
by the Department of Health and Social Services.
HOUSE BILL NO. 269
"An Act making special appropriations for restoration
projects relating to the Exxon Valdez oil spill and for
oil spill response projects; and providing for an
effective date."
JEROME SELBY, MAYOR, KENAI PENINSULA BOROUGH noted that the
legislature is appropriating a total of $103 million dollars
as a result of the Exxon/Valdez oil spill. He emphasized
that the Kenai Peninsula Borough absorbed over 50 percent of
the damage and impacts of the spill. He stressed that the
area that absorbed over 50 percent of the impact is only
receiving $3 million dollars from HB 269 and $200.0 thousand
dollars from the ALYESKA Settlement. He observed that the
area will receive some benefit from the proposed ferry
appropriation. He requested that section 7 on page three be
deleted and the funding be reappropriated as follows:
* $1 million dollars for acquisition of Department
of Fish and Game weir sites on Kodiak Island (He
noted that the weir sites are being closed); and
* $3,750.0 million dollars to the University of
Alaska Fishery Industrial Technology (Tec) Center
(section).
In addition, Mayor Selby suggested that section 12 be
reduced by $75.0 thousand dollars and added to section 10.
He noted that this would fully fund the state's portion of
the Tec Center. He requested that $9 million dollars be
inserted for acquisition on Afognak Island. He noted that
the area is scheduled for logging and contains critical
habitat.
CHARLES COLE, ATTORNEY GENERAL, DEPARTMENT OF LAW provided
members with AMENDMENT 1 (Attachment 2). He explained that
Amendment 1 would require a feasibility study and financial
plan demonstrating the financial viability of the proposed
Sea Life Center prior to appropriation. Representative
Foster MOVED to ADOPT AMENDMENT 1. There being NO
OBJECTION, it was so ordered.
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Co-Chair Larson questioned if funding for the oil spill
response assistance ferry vessel contained in section 13 (b)
has already been appropriated. He MOVED to AMEND HB 269 by
deleting section 13 (b) page 4, line 31 and page 5, lines 1
- 3.
(Tape Change, HFC 93-112, Side 1)
Co-Chair Larson pointed out that other appropriations for
the ferry include:
* $7 million dollars - 470 Fund;
* $7.5 million - Federal Trusteeship Council;
* $500 thousand dollars remaining from previous
appropriations.
Co-Chair Larson reiterated his motion to delete section 13
(b). There being NO OBJECTION, it was so ordered.
Attorney General Cole suggested that "substantial ongoing"
be deleted on page 5, line 12. He stated that the language
is redundant. Co-Chair Larson MOVED to delete "substantial
ongoing" on page 5, line 12. There being NO OBJECTION, it
was so ordered.
Attorney General Cole recommended that on page 4, line 23
after "private entities" insert "for public research
institutions". Representative Therriault offered Amendment
2, on page 4, line 23 insert "competitively awarded" and
delete "with private entities under AS 46.03.020. He
stated that the amendment would allow the University of
Alaska to compete for contracts. Attorney General Cole
advised that "public or private entities" be inserted. Co-
Chair Larson summarized page 4, line 23 to read, "to enter
into competitively awarded contracts with public or private
entities for research programs..." Representative
Therriault MOVED to AMEND HB 269 to insert "competitively
awarded contracts with public or private entities". There
being NO OBJECTION, it was so ordered.
Attorney General Cole proposed that "habitat" be added at
the beginning of line 29, page 3. Co-Chair Larson MOVED to
AMEND, HB 269 to insert "habitat" page 3, line 29.
Attorney General Cole suggested that "and related
facilities" be inserted at the end of line 2, page 3. Co-
Chair Larson MOVED to AMEND HB 269 on page 3, line 2 by
adding at the end of the line "and related facilities".
There being NO OBJECTION, it was so ordered.
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Attorney General Cole advised that page 3, line 7 be amended
to delete "Cook Inlet, whichever is considered by the
Department of Fish and Game to be more appropriate" and
insert "Kenai Peninsula, at a location considered by the
Department of Fish and Game".
Representative Brown noted that sites were ranked according
to biological, technical and logistical factors by a
technical and industry subcommittee. She observed that
Seward and Juneau Auke Bay were considered to have the
highest technical potential. She asserted that Kasistna Bay
is not an appropriate location for the facility. She
suggested "Kasistna Bay" be deleted and "Seward or Juneau"
be inserted.
CARL ROSIER, COMMISSIONER, DEPARTMENT OF FISH AND GAME
stressed that Kasistna Bay cannot be entirely ruled out. He
felt that the facility should be built in the general area
of Kasistna Bay or the lower Kenai Peninsula and not in
Southeast Alaska.
Co-Chair Larson asked if the feasibility study will consider
location.
CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT stated that
it is not anticipated that the feasibility study will
include site location. He emphasize that the ability of the
center to sustain its operations will be considered.
Representative Brown asked if lower Kenai Peninsula included
Seward. Commissioner Rosier replied that it would include
Seward. Representative Brown referred to backup material
detailing criteria for site selection. She expressed
concern that a site may be selected that does not meet the
criteria. Attorney General Cole emphasized the need to link
the appropriations to the restoration.
Representative Brown MOVED to AMEND AMENDMENT 3, to delete
"at Kasistna Bay or". There being NO OBJECTION, it was so
ordered.
Co-Chair Larson reiterated the motion to adopt AMENDMENT 3.
There being NO OBJECTION, it was so ordered.
Attorney General Cole suggested that the Committee delete
"1994" and insert "1999" on page 5, line 13. Co-Chair
Larson MOVE to delete "1994" and insert "1999" on page 5,
line 13. There being NO OBJECTION, it was so ordered.
Attorney General Cole discussed the Governor's priorities
concerning expenditures of restoration funding.
Co-Chair Larson asked how the Kachemak Bay Visitor Center
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will meet the restoration requirement.
JOHN SANDOR, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION stated that the location will be decided
jointly with the Department of Natural Resources and the
Kachemak Bay Advisory Committee. He emphasized that the
project will replace recreation resources lost as a result
of the Exxon Valdez Oil Spill.
Co-Chair Larson asked who will operate the shellfish
hatchery proposed in section 5. Commissioner Rosier stated
that the Department of Fish and Game will begin operation
with the intent to turnover the project to a nonprofit
organization.
Co-Chair Larson asked how appropriations in section 7 will
be spent. Commissioner Sandor noted that potential projects
will include cabins, toilets, tent platforms, mooring buoys
and fuel docks in the Kodiak Archipelago. He emphasized
that the projects will depend on land acquired by the
federal/state trustees with settlement funds.
Co-Chair Larson asked if section 11 will fund subsistence
use or small capital projects. Commissioner Rosier stated
that section 11 will aid restoration of subsistence
activities.
Representative Navarre asked how section 6 will restore
sport fish diminished by the Exxon Valdez oil spill.
Commissioner Rosier stressed that red salmon stocks on the
Kenai River were severely depleted. He asserted that
funding of the Fort Richardson Hatchery will divert sport
fishermen to other sport fish areas.
Representative Brown provided members with AMENDMENT 4
(Attachment 6). She explained that Amendment 4 would
delete section 7 and replace it with land acquisition on
Afognak Island.
(Tape Change, HFC 93-112, Side 2)
REPRESENTATIVE CLIFF DAVIDSON spoke in support of Amendment
4. Mayor Selby spoke in support of Amendment 4. He
emphasized the need to recover habitat vital to the area's
economic development. He stressed that the land in question
contains critical red salmon streams. Other species damaged
by the spill are located on Afognak Island.
Co-Chair Larson asked Mayor Selby to prioritize projects.
Mayor Selby listed projects in priority.
* 1st - Fully fund Fishery Technology Center at $7.5
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million dollars;
* 2nd - Acquisition of weir sites;
* 3rd - Afognak Island land acquisition.
Representative Grussendorf spoke in support of the
amendment. He felt the amendment supported economic
development over investment in recreation uses.
Representative Brown WITHDREW HER AMENDMENT. Representative
Brown MOVED to delete section 7 and add $4.5 million dollars
to page 4, line 6, section 10. She explained that the
amendment would fully fund the Fishery Technology Center.
Attorney General Cole emphasized that the Governor supports
section 7 funding for recreational uses. He pointed out
that the civil settlement can be used to fund projects. He
suggested that priority be given to projects that cannot be
funded from the civil settlement. Representative Hoffman
expressed support for the amendment.
House Bill 269 was HELD in Committee.
HOUSE BILL NO. 167
"An Act relating to air quality control and the
prevention, abatement, and control of air pollution;
relating to civil and criminal penalties, damages, and
other remedies for air quality control violations;
clarifying the definition of `hazardous substance' to
include releases and threatened releases to the
atmosphere; amending the lien provisions relating to
the oil and hazardous substance release response fund;
relating to inspection and enforcement powers of the
Department of Environmental Conservation; and providing
for an effective date."
Representative Hanley MOVED to RESCIND the Committee's
action in reporting CSHB 167 (FIN) from Committee. There
being NO OBJECTION, it was so ordered.
Representative Hanley MOVED to delete "monthly" and insert
"periodically" on page 29, page 37. Representative Brown
clarified that the intent is not that the APUC develop new
procedures for monthly recovery. She observed that not all
utilities recover monthly. There being NO OBJECTION, it was
so ordered.
Representative Hanley MOVED to report CSHB 167 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes.
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CSHB 167 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal impact note by the
Department of Environmental Conservation and with a fiscal
impact note by the Department of Law.
HOUSE BILL NO. 269
"An Act making special appropriations for restoration
projects relating to the Exxon Valdez oil spill and for
oil spill response projects; and providing for an
effective date."
Co-Chair Larson noted that a motion to amend was pending.
He restated the motion: Delete section 7 and add $4.5
million dollars to page 4, line 6, section 10. A roll call
vote was taken on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman
OPPOSED: Hanley, Parnell, Therriault, MacLean, Larson
Representatives Navarre, Foster and Martin were not present
for the vote.
The MOTION FAILED (3-5).
Representative Brown MOVED to ADOPT AMENDMENT 5 (Attachment
7). Representative Hanley OBJECTED. Representative Brown
noted that Amendment 5 would reduce section 12 by $1 million
dollars and insert a new section to appropriate $1 million
dollars for weir site acquisition.
MEAD TREADWELL, DEPUTY COMMISSIONER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION stated that the Department
opposes the amendment. He explained that section 12 will
provide funding for research programs directed to the
prevention, cleanup and containment of oil spills. He
reiterated that funding for the weirs could be obtained
through the civil settlement.
Representative Grussendorf expressed support for weir
funding. He suggested that the funding source be moved from
section 12 to section 7.
Representative Brown MOVED to AMEND AMENDMENT 5 to reduce
section 7 by $1 million dollars and insert a new section to
appropriate $1 million dollars for weir site acquisition.
Representative Davidson emphasized that the weir sites will
help to manage the resource. Mayor Selby stated that the
weir sites are needed to assess escapement. Commissioner
Rosier acknowledged that the weir sites are need to assess
red salmon returns.
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Co-Chair Larson reiterated the motion to reduce section 7 by
$1 million dollars and insert a new section to appropriate
$1 million dollars for weir site acquisition.
Representative Therriault OBJECTED. A roll call vote was
taken on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman
OPPOSED: Foster, Martin, MacLean, Larson
Representatives Navarre, Hanley and Parnell were not present
for the vote.
The MOTION FAILED (3-4).
Representative Brown MOVED to delete section 13. $15.0
million dollars for road connections between the Seward
highway and Port of Wittier. Representative Brown observed
that feasibility studies have not been completed. She noted
the lack of back up material and the high project costs.
Co-Chair Larson clarified that the project is expected to
cost between $30 and $37 million dollars. Members continued
to discuss project priority and funding for weir sites.
(Tape Change, HFC 93-113, Side 1)
Co-Chair Larson provided members with the Whittier Access
Study (Attachment 8).
Representative Brown expressed her intent to move to delete
section 4. Representative Brown WITHDREW HER MOTION to
delete section 13. Representative Brown MOVED to delete
section 4, $500.0 thousand dollars for the Kachemak Bay
visitors center and related facilities.
NEIL JOHANNSEN, DIRECTOR, DIVISION OF PARKS AND OUTDOOR
RECREATION, DEPARTMENT OF NATURAL RESOURCES emphasized that
Kachemak Bay State Park was the first state park created in
Alaska. He stressed that no investment has been made in the
park. He stated that the intent is to use the park as an
outdoor classroom.
Representative Brown asked how it would fit with
restoration. Mr. Johannsen noted that Kachemak State Park
was damaged by the spill. He stressed that the project will
replace lost value. Representative Brown WITHDREW HER
AMENDMENT.
HB 269 was HELD in Committee.
ADJOURNMENT
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The meeting adjourned at 4:55 p.m.
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