Legislature(1993 - 1994)

03/25/1994 01:30 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 25, 1994                                        
                            1:30 p.m.                                          
                                                                               
  TAPE HFC 94-87, Side 2, #000 - end.                                          
  TAPE HFC 94-88, Side 1, #000 - end.                                          
  TAPE HFC 94-88, Side 2, #000 - end.                                          
  TAPE HFC 94-89, Side 1, #000 - end.                                          
  TAPE HFC 94-89, Side 2, #000 - end.                                          
  TAPE HFC 94-90, Side 1, #000 - end.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 1:30 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 David Finkelstein; Representative Joe Sitton;                 
  Representative Ed  Willis; Representative  Fran Ulmer;  Mike                 
  Greany,  Director,  Legislative   Finance  Division;   Nancy                 
  Slagle, Director, Division  of Budget Review, Office  of the                 
  Management  and  Budget,  Office  of  the  Governor;  Sharon                 
  Barton,  Director,  Department   of  Administration;   Edgar                 
  Blatchford   Commissioner,   Department  of   Community  and                 
  Regional Affairs;  Remond Henderson,  Director, Division  of                 
  Administrative Service, Department of Community and Regional                 
  Affairs; Douglas Hanon, Postsecondary  Education Commission;                 
  Karen Crane,  Director,  Libraries,  Archives  and  Museums,                 
  Department of  Education; Karen Rehfeld,  Director, Division                 
  of Administrative  Services, Department  of Education;  John                 
  Abshire, Deputy  Commissioner,  Department  of  Labor;  Jeff                 
  Morrison,  Director,  Administrative  and Support  Services,                 
  Department of Military and  Veterans Affairs; Ervin  Martin,                 
  Director, Division  of  Emergency  Services,  Department  of                 
  Military  and   Veterans  Affairs;  David   Teal,  Director,                 
  Division of  Administrative Services,  Department of  Labor;                 
  Dave  Johnston,   Chairman,   Oil   and   Gas   Conservation                 
  Commission;  Stan  Ridgeway,  Deputy   Director,  Vocational                 
  Rehabilitation,  Department  of  Education;  Joe  McCormick,                 
  Director, Postsecondary Education, Department of Education.                  
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
                                1                                              
                                                                               
                                                                               
  HB 370    "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  370  was   HELD  in   Committee  for   further                 
            discussion.                                                        
  HB 371    "An  Act  making   appropriations  for   operating                 
            expenses for certain programs  for which the costs                 
            are derived  from mandated  formulas or  criteria,                 
            and for expenses for  certain leases and contracts                 
            for state services  and operations; and  providing                 
            for an effective date."                                            
                                                                               
            HB   371  was  HELD   in  Committee   for  further                 
            discussion.                                                        
  HOUSE BILL NO. 370                                                           
                                                                               
       "An  Act  making appropriations  for the  operating and                 
       loan  program  expenses  of  state  government  and  to                 
       capitalize funds; and providing for an effective date."                 
                                                                               
  HOUSE BILL NO. 371                                                           
                                                                               
       "An  Act making  appropriations for  operating expenses                 
       for certain programs  for which  the costs are  derived                 
       from mandated  formulas or  criteria, and for  expenses                 
       for certain leases and contracts for state services and                 
       operations; and providing for an effective date."                       
                                                                               
  Representative Hanley MOVED  to INCORPORATE  HB 371 into  HB
  370.  There being NO OBJECTION, it was so ordered.                           
                                                                               
  Co-Chair  MacLean  MOVED  to INCORPORATE  the  House Finance                 
  Committee Agency Subcommittee's recommendations into HB 370.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  DEPARTMENT OF ADMINISTRATION                                                 
                                                                               
  Co-Chair Larson MOVED  to ADOPT AMENDMENT 1  (copy on file).                 
  Amendment  1  would  reduce   $500.0  thousand  dollars   in                 
  interagency   receipts   within  the   Information  Services                 
  component  and increase  general  fund  program receipts  by                 
  $350.0 thousand dollars.                                                     
                                                                               
  NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION                 
  explained  that  the Department  anticipates  a  six percent                 
  reduction in  charge-back rates  for all  agencies.   A  two                 
  percent increase for utilization has been included.                          
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  In  response   to  a   question  by  Representative   Brown,                 
  Commissioner Usera  clarified  that the  reductions will  be                 
  based on utilization and anticipated needs for the following                 
  fiscal year.  Agencies will be  charged less for the service                 
  provided.                                                                    
                                                                               
  There being NO OBJECTION, AMENDMENT 1 was adopted.                           
                                                                               
  Co-Chair Larson MOVED  to ADOPT AMENDMENT 2 (copy  on file).                 
  He explained that  amendment 2 would reinstate $82,577 for a                 
  senior  petroleum  engineer  position  in  the Oil  and  Gas                 
  Conservation Commission and reinstate $43,238 to reflect the                 
  true amount  of salary  reduction.   He  explained that  the                 
  Subcommittee's reductions were beyond the desired level.                     
                                                                               
  DAVE JOHNSTON, CHAIRMAN, OIL AND GAS CONSERVATION COMMISSION                 
  expressed  concern that  travel and  contractual funding  be                 
  available to allow  the petroleum engineer to travel  to the                 
  oil sites.  He clarified that the  program could be run at a                 
  minimum of $120.0 thousand dollars.                                          
                                                                               
  Co-Chair  Larson  MOVED  to  AMEND  amendment  2  to  insert                 
  "$106,762" and delete "$82,577" thousand dollars.                            
                                                                               
  Mr.  Johnston  stressed  that  Alaska  is branching  out  to                 
  satellite  oil  production  sites.    The oil  industry  has                 
  proposed  that the  production of  each  small field  be co-                 
  mingled  on  the  surface  and  processed  at  the  Lisburne                 
  production facility.   He  explained the  importance of  oil                 
  testing to facilitate  the oversight  process and track  oil                 
  for accounting purposes.  He emphasized that current funding                 
  could not be used  without cutting other programs or  staff.                 
  He  reiterated  his  concern   that  the  engineer  position                 
  requires computer software and travel support.                               
                                                                               
  Co-Chair Larson HELD AMENDMENT 2.                                            
                                                                               
  Co-Chair Larson MOVED  to ADOPT AMENDMENT 3  (copy on file).                 
  He  explained that  amendment  3 would  clarify  legislative                 
  intent to implement a plan to hold and broadcast public fund                 
  raising efforts on behalf of RATNet.                                         
                                                                               
  Representative   Brown   questioned    what   role    public                 
  broadcasting can play.   Co-Chair Larson explained  that the                 
  amendment would encourage RATNet to retain the same level of                 
  funding but raise $150.0 thousand  dollars through their own                 
  efforts.                                                                     
                                                                               
  Representative Grussendorf noted that other agencies are not                 
  required to raise their own funds.                                           
                                                                               
  There being NO OBJECTION, AMENDMENT 3 was adopted.                           
                                                                               
                                3                                              
                                                                               
                                                                               
  Representative Hanley MOVED  to ADOPT  AMENDMENT 4 (copy  on                 
  file).   He explained  that amendment 4  would delete $400.0                 
  thousand dollars from RATNet and add $300.0 for Alcohol  and                 
  Drug  Abuse grants.   He  emphasized the need  to prioritize                 
  reductions.  He  maintained that RATNet is  not an essential                 
  service.                                                                     
                                                                               
  (Tape Change, HFC 94-88, Side 1)                                             
                                                                               
  Representative Hoffman MOVED to AMEND  amendment 4 to delete                 
  the  $400.0  reduction  from  RATNet  and  fund  the  $300.0                 
  increase  for  Alcohol  and  Drug   Abuse  Grants  from  the                 
  Constitutional Budget  Reserve Fund.   Representative Martin                 
  OBJECTED.  A roll call vote was taken on the MOTION.                         
                                                                               
  IN FAVOR: Hoffman,  Navarre,  Brown,   Foster,  Grussendorf,                 
  MacLean                                                                      
  OPPOSED:  Hanley, Martin, Parnell, Therriault, Larson                        
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Discussion  pursued  in  regards  to  expenditures from  the                 
  Constitutional Budget  Reserve Fund.   Representative Hanley                 
  WITHDREW AMENDMENT 4.   There being NO OBJECTION, it  was so                 
  ordered.                                                                     
                                                                               
  Co-Chair MacLean MOVED  to ADOPT AMENDMENT 5 (copy on file).                 
  Amendment 5 would delete $100.0  thousand dollars in program                 
  receipts and  add $100.0  thousand dollars  in general  fund                 
  dollars.  She  spoke  in  support  of  amendment  5.     She                 
  emphasized  that  the RATNet  Council  needs time  to devise                 
  means to  raise additional  funding.   Representative Hanley                 
  OBJECTED.  A roll call vote was taken on the MOTION.                         
                                                                               
  IN FAVOR: Hoffman, Brown, Foster, Grussendorf, MacLean                       
  OPPOSED:  Navarre,  Hanley,  Martin,   Parnell,  Therriault,                 
  Larson                                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Co-Chair MacLean MOVED  to delete $50.0 thousand  dollars in                 
  program receipts and  add $50.0 thousand dollars  in general                 
  fund dollars.                                                                
                                                                               
  Representative Brown noted that if  the amendment is adopted                 
  RATNet  will still have  to be off  the air for  four weeks.                 
  She emphasized the importance of  RATNet to the areas  where                 
  no commercial alternatives exist.                                            
                                                                               
  Representative Martin spoke in opposition to  the amendment.                 
  A roll call vote was taken on the MOTION.                                    
                                                                               
                                4                                              
                                                                               
                                                                               
  IN FAVOR: Hoffman,  Brown,  Foster,   Grussendorf,  MacLean,                 
  Larson                                                                       
  OPPOSED:  Navarre, Hanley, Martin, Parnell, Therriault                       
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Co-Chair MacLean MOVED to ADOPT AMENDMENT 6 (copy  on file).                 
  She explained  that amendment  6 would state  that not  more                 
  than  $315,600.0  thousand  dollars  of  the  Alaska  Public                 
  Broadcasting  Commission  grant  could  be  given  to   KAKM                 
  television in Anchorage.                                                     
                                                                               
  Representative  Hanley  observed  that  KAKM   is  going  to                 
  discontinue its leasing of facilities.                                       
                                                                               
  Representative Brown questioned the  ability to restrict the                 
  appropriation.                                                               
                                                                               
  MIKE GREANY,  DIRECTOR, LEGISLATIVE FINANCE  DIVISION stated                 
  that the amendment was properly drafted.                                     
                                                                               
  A roll call vote was taken on  the MOTION to adopt AMENDMENT                 
  6.                                                                           
                                                                               
  IN FAVOR: Foster, Grussendorf, MacLean                                       
  OPPOSED:  Brown,   Navarre,    Hanley,   Martin,    Parnell,                 
  Therriault,         Larson                                                   
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative Hanley WITHDREW AMENDMENT 7.                                  
                                                                               
  Representative Hoffman MOVED  to ADOPT AMENDMENT 8  (copy on                 
  file).  He noted that amendment  8 would add $160.0 thousand                 
  dollars from the  Constitutional Budget Reserve Fund  to the                 
  Public  Broadcasting  Commission.   He  spoke in  support of                 
  amendment 8.                                                                 
                                                                               
  Representative  Martin  OBJECTED.    Discussion  pursued  in                 
  regards  to  expenditures  from  the  Constitutional  Budget                 
  Reserve Fund.                                                                
                                                                               
  A roll call  vote was taken on the MOTION to adopt AMENDMENT                 
  8.                                                                           
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, MacLean                               
  OPPOSED:  Foster,   Hanley,   Martin,    Navarre,   Parnell,                 
  Therriault,         Larson                                                   
                                                                               
  The MOTION FAILED (4-6).                                                     
                                                                               
  Representative Hanley MOVED  to ADOPT  AMENDMENT 9 (copy  on                 
                                                                               
                                5                                              
                                                                               
                                                                               
  file).  He  clarified that amendment 9 would add legislative                 
  intent to direct  the Public Broadcasting Commission  not to                 
  reduce grants in areas where the public radio station is the                 
  only station available.                                                      
                                                                               
  Co-Chair  MacLean  and Representative  Grussendorf expressed                 
  concern with the amendment.                                                  
                                                                               
  Representative Hanley WITHDREW AMENDMENT 9.                                  
                                                                               
  Representative Hanley MOVED  to ADOPT AMENDMENT 10  (copy on                 
  file).   He  observed  that  Senior Services  Administration                 
  would  be  reduced  by  $400.0  thousand MHTIA  dollars  and                 
  Alcohol and Drug  Abuse Grants increased by  $300.0 thousand                 
  MHTIA dollars.   The remaining  amount would be  returned to                 
  the General Fund.                                                            
                                                                               
  Commissioner  Usera noted  that  the amendment  would reduce                 
  programs to aid Alzheimer patients.  She emphasized the need                 
  for  long  term  care  of  Alzheimers  disease  and  related                 
  dementia.                                                                    
                                                                               
  A roll call vote was taken on  the MOTION to adopt AMENDMENT                 
  10.                                                                          
                                                                               
  IN FAVOR: Therriault,  Hanley,  Martin,   Navarre,  Parnell,                 
  MacLean                                                                      
  OPPOSED:  Brown, Foster, Grussendorf, Hoffman, Larson                        
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative Brown  reviewed AMENDMENTS 11  and 12 (copies                 
  on file).   She explained  that both amendments  address the                 
  Senior Services component.  She observed that these programs                 
  help keep  seniors  in  their  homes.   Amendment  11  would                 
  restore  $28.7  thousand dollars  for  home meals  and $20.0                 
  thousand dollars  for home  and community  based care.   She                 
  stressed  the   additional  cost   of  nursing   home  care.                 
  Amendment  12  would  shift  $20.0  thousand  dollars   from                 
  Nutrition, Transportation  and Support Services to  Home and                 
  Community Based Care.                                                        
                                                                               
  (Tape Change, HFC 94-88, Side 2)                                             
                                                                               
  Co-Chair MacLean expressed support for amendment 11.                         
                                                                               
  Representative  Brown   MOVED  to   ADOPT  AMENDMENT   11.                   
  Representative Hanley OBJECTED.  A roll call  vote was taken                 
  on the MOTION.                                                               
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,   Navarre,  Foster,                 
  MacLean                                                                      
                                                                               
                                6                                              
                                                                               
                                                                               
  OPPOSED:  Hanley, Parnell, Therriault, Larson                                
                                                                               
  Representative Martin not present for the vote.                              
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Representative Brown MOVED  to ADOPT  AMENDMENT 13 (copy  on                 
  file).   She explained that  amendment 13  would fund  $35.1                 
  thousand  dollars for the  Alaska Public Offices Commission.                 
  She spoke in support of amendment 13.                                        
                                                                               
  Co-Chair  Larson  spoke  in  support  of higher  filing  and                 
  lobbying fees.                                                               
                                                                               
  A roll  call vote was taken on the MOTION to adopt AMENDMENT                 
  13.                                                                          
                                                                               
  IN FAVOR: Brown                                                              
  OPPOSED:  Grussendorf,  Hoffman,  Navarre,  Foster,  Hanley,                 
  Martin,        Parnell, Therriault, MacLean, Larson                          
                                                                               
  The MOTION FAILED (1-10).                                                    
                                                                               
  Representative Navarre MOVED to ADOPT  AMENDMENT 14 (copy on                 
  file).    Amendment 14  would restore  the Office  of Public                 
  Advocacy  to  the  Governor's  amended  request  minus  $9.2                 
  thousand  dollars  for   health  insurance  increase.     He                 
  maintained that failure to adopt amendment 14 will result in                 
  the need for a FY 95 supplemental request.                                   
                                                                               
  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 MOVED  to ADOPT  AMENDMENT 15 (copy  on                 
  file).  She  explained that amendment  15 would restore  the                 
  Public Defender  Agency to  the  Governor's amended  request                 
  minus $40.0 thousand dollars for  health insurance increase.                 
  She observed that no new positions will be added.  She noted                 
  that there has been  a 45 percent increase in  caseload over                 
  the past six years  with no comparable staff increase.   She                 
  provided  members  with  a  memorandum  from  John   Salemi,                 
  Director, Public  Defender  Agency  supporting  the  request                 
  (copy on file).                                                              
                                                                               
  Representatives Navarre  and Grussendorf spoke in support of                 
  amendment 15.   Representative Brown  noted that the  Public                 
  Defender Agency will require a  supplemental if amendment 15                 
                                                                               
                                7                                              
                                                                               
                                                                               
  is not adopted.                                                              
                                                                               
  A roll call vote was taken on the MOTION to adopt  AMENDMENT                 
  15.                                                                          
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
  MacLean,       Larson                                                        
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative  Hoffman  MOVED  to RESCIND  the  Committee's                 
  action  in  failing to  adopt  AMENDMENT 8.   Representative                 
  Hanley OBJECTED.  A roll call vote was taken on the MOTION.                  
                                                                               
  IN FAVOR: Brown,  Foster,  Grussendorf,   Hoffman,  Navarre,                 
  Larson,        MacLean                                                       
  OPPOSED:  Hanley, Martin, Parnell, Therriault                                
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Representative   Hoffman   MOVED  to   ADOPT   AMENDMENT  8.                 
  Representative Hanley  OBJECTED.  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).                                                     
                                                                               
  Commissioner Usera  spoke in support  for additional funding                 
  for the  Division of  Personnel and  General Services.   She                 
  observed  that  over  200  arbitrations  are pending.    The                 
  Division  does  not  have  the   resources  to  address  the                 
  arbitrations.   She emphasized  that the it  is costing  the                 
  state  $166.0 thousand dollars a  month to not arbitrate the                 
  cases.  She  stressed that the Division  of General Services                 
  saved the state $1.5 million dollars in renegotiated leases.                 
  She maintained that  further money could  be saved if  staff                 
  was available to negotiate additional leases.                                
                                                                               
  DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                  
                                                                               
  Representative Therriault  MOVED to ADOPT AMENDMENT  1 (copy                 
  on file).   Amendment 1 would  reduce Disaster Planning  and                 
  Control by $182.4 thousand dollars.                                          
                                                                               
  ERVIN  MARTIN,  DIRECTOR,  DIVISION  OF EMERGENCY  SERVICES,                 
  DEPARTMENT OF  MILITARY AND  VETERANS AFFAIRS spoke  against                 
  amendment 1.  He emphasized the  need to maintain the states                 
  ability to respond  to disasters.   He noted that the  funds                 
                                                                               
                                8                                              
                                                                               
                                                                               
  reflect  one third of the  Divisions personnel.  He asserted                 
  that there  will not be  sufficient state responders  if the                 
  funding is reduced.  He clarified that  $1.0 million dollars                 
  in federal funding would be jeopardized.                                     
                                                                               
  Representative  Therriault  argued  that  the  state/federal                 
  match would not be effected.                                                 
                                                                               
  Mr. Martin discussed disaster preparedness.  He stressed the                 
  need to maintain  a critical  threshold of preparedness  for                 
  disasters.  He noted that the Governor can only release $1.0                 
  million dollars without legislative approval.                                
                                                                               
  JEFF   MORRISON,   DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                 
  SERVICES,  DEPARTMENT  OF   MILITARY  AND  VETERANS  AFFAIRS                 
  clarified  that the Division's  cost allocation of positions                 
  would be altered, resulting in a cascading effect if funding                 
  is reduced.                                                                  
                                                                               
  A  roll call vote was taken on the MOTION to adopt AMENDMENT                 
  1.                                                                           
                                                                               
  IN FAVOR: Brown, Hanley, Martin, Parnell, Therriault                         
  OPPOSED:  Foster, Grussendorf, Hoffman, MacLean, Larson                      
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative Therriault WITHDREW AMENDMENT 2.                              
                                                                               
  DEPARTMENT OF LABOR                                                          
                                                                               
  Representative Brown  MOVED to  ADOPT AMENDMENT  1 (copy  on                 
  file).  She explained that amendment 1 would allow the state                 
  to  continue to  provide  demographic  functions  by  adding                 
  $136.3 thousand  dollars  to the  Labor  Market  Information                 
  component.                                                                   
                                                                               
  DAVID TEAL, DIRECTOR,  DIVISION OF ADMINISTRATIVE  SERVICES,                 
  DEPARTMENT OF LABOR observed that the functions of the State                 
  Data Center benefits  the whole state.   Information is used                 
  to apply for federal grant funds.                                            
                                                                               
  Representative  Martin  asserted   that  the  Department  of                 
  Community and Regional Affairs duplicates the data function.                 
  Mr.  Teal  clarified that  the  Department of  Community and                 
  Regional Affairs uses the data provided by the Department of                 
  Labor for calculations  of municipal assistance and  revenue                 
  sharing.                                                                     
                                                                               
  JOHN  ABSHIRE,  DEPUTY  COMMISSIONER,  DEPARTMENT  OF  LABOR                 
                                                                               
                                9                                              
                                                                               
                                                                               
  emphasized that the  Department of  Labor gives priority  to                 
  its  statutory obligations  to the  people in  the state  of                 
  Alaska.                                                                      
                                                                               
  A roll call vote  was taken on the MOTION to adopt AMENDMENT                 
  1.                                                                           
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman                                        
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
  MacLean,       Navarre, Larson                                               
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative Grussendorf MOVED to ADOPT  AMENDMENT 2 (copy                 
  on file).  Amendment  2 would add $60.0 thousand  dollars in                 
  the Worker's Compensation component.                                         
                                                                               
  REPRESENTATIVE JOE  SITTON testified in  behalf of amendment                 
  2.    The amendment  will  add an  investigation  officer to                 
  investigate  incidents of  workers' compensation fraud.   He                 
  maintained that the position will save the state money.                      
                                                                               
  Co-Chair MacLean spoke in support of amendment 2.                            
                                                                               
  (Tape Change, HFC 94-89, Side 1)                                             
                                                                               
  Representative  Hanley  OBJECTED  to  the  motion  to  adopt                 
  amendment 2.  A roll call vote was taken on the MOTION.                      
                                                                               
  IN FAVOR: Brown,  Foster,  Grussendorf,   Hoffman,  Navarre,                 
  MacLean                                                                      
  OPPOSED:  Hanley, Martin, Therriault, Larson                                 
                                                                               
  The MOTION PASSED (7-4).                                                     
                                                                               
  Representative Therriault MOVED to  ADOPT AMENDMENT 3  (copy                 
  on  file).   Amendment  3  would reduce  Data  Processing by                 
  $100.0 thousand dollars.                                                     
                                                                               
  Co-Chair MacLean clarified that the  funding in question had                 
  been reduced by a previous amendment.                                        
                                                                               
  Representative Therriault WITHDREW AMENDMENT 3.                              
                                                                               
  Representative Therriault  MOVED to ADOPT AMENDMENT  4 (copy                 
  on  file).   Amendment 4  would reduce  Labor  Standards and                 
  Safety  by  $344.3  thousand dollars.    He  maintained that                 
  federal funds would not be diminished by the amendment.                      
                                                                               
  Co-Chair MacLean stated  that the reduction would  result in                 
  the   elimination  of   Asbestos   Abatement  Training   and                 
  Certification, Painter Training and Certification, Explosive                 
                                                                               
                               10                                              
                                                                               
                                                                               
  Certification, Hazard Communication Support Programs.                        
                                                                               
  Mr. Abshire  discussed the  ramifications of  the reduction.                 
  He noted that eight positions would be affected.                             
                                                                               
  Representative  Therriault  MOVED to  AMEND  amendment 4  to                 
  reduce the  Labor Standards  and Safety  by $100.0  thousand                 
  dollars.  Co-Chair MacLean  OBJECTED.  A roll call  vote was                 
  taken on the MOTION.                                                         
                                                                               
  IN FAVOR: Brown,  Grussendorf,   Navarre,  Foster,   Hanley,                 
  Martin,        Therriault, Parnell, Larson                                   
  OPPOSED:  Hoffman, MacLean                                                   
                                                                               
  The MOTION PASSED (9-2).                                                     
                                                                               
  A roll call vote was taken on the main MOTION as amended.                    
                                                                               
  IN FAVOR: Hanley, Martin, Parnell, Therriault, Foster                        
  OPPOSED:  Brown,  Grussendorf,  Hoffman,  Navarre,  MacLean,                 
  Larson                                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS                                 
                                                                               
  Representative  Grussendorf MOVED to ADOPT AMENDMENT 1 (copy                 
  on  file).   Amendment 1  would restore  the  $30.0 thousand                 
  dollars designated grant for Perseverance Theater.                           
                                                                               
  REPRESENTATIVE FRAN ULMER testified  in support of amendment                 
  1.  She noted  that the grant supports a  statewide training                 
  program.    She  gave  examples  of the  program's  training                 
  support for rural residents.                                                 
                                                                               
  Co-Chair MacLean  discussed the criteria used for designated                 
  grants.    She  stated  that  programs  without  alternative                 
  funding sources were given priority.                                         
                                                                               
  Representative Hanley OBJECTED.  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 Hoffman WITHDREW AMENDMENT 2.                                 
                                                                               
  Representative Hoffman MOVED  to ADOPT AMENDMENT 3  (copy on                 
  file).  Amendment 3  would add $40.0 thousand dollars  for a                 
                                                                               
                               11                                              
                                                                               
                                                                               
  designated  grant to  the  Yukon  River  Drainage  Fisheries                 
  Association.    He spoke  in  support  of amendment  3.   He                 
  clarified  that  the  Association   does  not  receive  STEP                 
  funding.                                                                     
                                                                               
  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 Navarre MOVED  to ADOPT AMENDMENT 4  (copy on                 
  file).  Amendment 4  would add $31.9 thousand dollars  for a                 
  designated grant to People Count and reduce other designated                 
  grantees by 10 percent.                                                      
                                                                               
  Representative  Navarre  MOVED  to   AMEND  amendment  4  by                 
  changing   the  funding  source  to  the  House  Legislative                 
  Operating Budget.                                                            
                                                                               
  A roll call vote was taken on the MOTION to amend.                           
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,   Navarre,  Foster,                 
  Martin,        Therriault, MacLean                                           
  OPPOSED:  Larson                                                             
                                                                               
  The MOTION PASSED (10-1).                                                    
                                                                               
  Representative Navarre pointed out  that the Kenai Peninsula                 
  is  among  the  top  areas  of   the  state  in  respect  to                 
  unemployment.    People  Count  provides  job  training  for                 
  unskilled workers.  People count  has a successful placement                 
  program.                                                                     
                                                                               
  A roll  call vote was taken on the MOTION to adopt AMENDMENT                 
  4 as amended.                                                                
                                                                               
  IN FAVOR: Brown,  Foster,  Grussendorf,   Hoffman,  Navarre,                 
  MacLean                                                                      
  OPPOSED:  Hanley, Martin, Parnell, Therriault, Larson                        
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative Hanley MOVED  to ADOPT  AMENDMENT 5 (copy  on                 
  file).  Amendment  5 would delete all  designated grants and                 
  add  $240.0  thousand dollars  into  Alcohol and  Drug Abuse                 
  Grants.    He maintained  that  the Alcohol  and  Drug Abuse                 
  Grants are a higher priority than other designated grants.                   
                                                                               
  Representative Brown noted  that she  is about  to become  a                 
                                                                               
                               12                                              
                                                                               
                                                                               
  board member of the Alaska Special  Olympics which is one of                 
  the grantees.                                                                
                                                                               
  (Tape Change, HFC 94-89, Side 2)                                             
                                                                               
  Representative  Hoffman  recommended  that the  question  be                 
  divided.                                                                     
                                                                               
  Representative  Hanley  MOVED  to  DELETE  the  addition  to                 
  Alcohol and Drug Abuse grants.  There being NO OBJECTION, it                 
  was so ordered.                                                              
                                                                               
  Representative Hanley MOVED to ADOPT  AMENDMENT 5, to delete                 
  all designated grants.   A roll call  vote was taken on  the                 
  MOTION.                                                                      
                                                                               
  IN FAVOR: Brown,  Grussendorf,   Navarre,  Hanley,   Martin,                 
  Parnell,       Therriault                                                    
  OPPOSED:  Hoffman, MacLean, Larson                                           
                                                                               
  The MOTION PASSED (7-4).                                                     
                                                                               
  Representative Hanley MOVED  to ADOPT  AMENDMENT 6 (copy  on                 
  file).   Amendment 6  would delete  $350.0 thousand  dollars                 
  from the Office of the Commissioner.                                         
                                                                               
  Co-Chair  MacLean  OBJECTED.     She  maintained   that  the                 
  amendment would result  in the elimination of  state funding                 
  for Alaska Legal Services.                                                   
                                                                               
  Mr.  Henderson  agreed  that some  offices  of  Alaska Legal                 
  Services would be closed.                                                    
                                                                               
  Representatives  Hoffman   and  Brown   spoke  against   the                 
  amendment.                                                                   
                                                                               
  A roll  call vote was taken on the MOTION to adopt AMENDMENT                 
  6.                                                                           
                                                                               
  IN FAVOR: Therriault, Hanley                                                 
  OPPOSED:  Brown,  Grussendorf,  Hoffman,   Navarre,  Foster,                 
  Martin,        Parnell, MacLean, Larson                                      
                                                                               
  The MOTION FAILED (2-9).                                                     
                                                                               
  Representative  Therriault  discussed AMENDMENT  7  (copy on                 
  file).    He noted  his intent  to  add amendment  7, $150.0                 
  thousand dollars for the Fairbanks Native Association, under                 
  the Department of Labor, STEP Program.                                       
                                                                               
  Representative Therriault HELD AMENDMENT 7.                                  
                                                                               
                                                                               
                               13                                              
                                                                               
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
  Representative Grussendorf MOVED to  ADOPT AMENDMENT 1 (copy                 
  on file).   Amendment  1 adds  $184.4 to  the WICHE  Student                 
  Exchange Program.  This would allow 15 new students to enter                 
  the program.                                                                 
                                                                               
  Co-Chair  Larson noted  that  the  Subcommittee  elected  to                 
  delete  funding  for  new  students   until  the  issue  was                 
  discussed  by  the full  Committee.   Discussion  pursued in                 
  regards  to  the addition  of  new  students in  the  WITCHE                 
  program.                                                                     
                                                                               
  JOE MCCORMICK, DIRECTOR, POSTSECONDARY EDUCATION, DEPARTMENT                 
  OF EDUCATION spoke  in support of  amendment 1.  He  pointed                 
  out that 115 students have applied  and are eligible for the                 
  program.   Only  15 of  the students  would be  funded.   He                 
  emphasized  that  as  long  as  there  is  no  state  higher                 
  education  system  which provides  medical,  veterinary, and                 
  other   allayed  health  training  then  access  to  certain                 
  programs  would  be  eliminated  if  WICHE  funding  is  not                 
  continued.  He observed that Alaska  seats are reserved.  If                 
  the program is  discontinued Alaskan  students will have  to                 
  compete with students from other states.                                     
                                                                               
  Representative Martin OBJECTED to  the adoption of AMENDMENT                 
  1.   He spoke  against amendment 1.   A  roll call  vote was                 
  taken on the MOTION.                                                         
                                                                               
  IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre                       
  OPPOSED:  Hanley, Martin, Parnell, Therriault, Larson                        
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative Hanley MOVED  to ADOPT  AMENDMENT 2 (copy  on                 
  file).  Amendment 2 would  eliminate $325.0 thousand dollars                 
  from the Alaska State  Council on the Arts. Funding  for the                 
  Alaska State Council on  the Arts would be deleted  with the                 
  exception of  funds needed to match federal funds.  Seventy-                 
  five  percent  of the  reduced  funding  would be  added  to                 
  Alcohol and Drug Abuse Grants.                                               
                                                                               
  Representative  Hoffman   MOVED  to  DIVIDE   the  Question.                 
  Representative Hanley OBJECTED.   A roll call vote was taken                 
  on the MOTION.                                                               
                                                                               
  IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre                       
  OPPOSED:  Hanley, Martin, Parnell, Therriault, Larson                        
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
                               14                                              
                                                                               
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative  Therriault MOVED  to  AMEND amendment  2  to                 
  delete  "$325.0"  and  insert  "$200.0"  thousand   dollars.                 
  Seventy-five percent of $200.0 would be added to Alcohol and                 
  Drug Abuse Grants.  Representative Hanley  OBJECTED.  A roll                 
  call vote was taken on the MOTION.                                           
                                                                               
  IN FAVOR: Therriault, Larson                                                 
  OPPOSED:  Brown,  Grussendorf,  Hoffman,   Navarre,  Foster,                 
  Hanley, Martin, Parnell                                                      
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (2-8).                                                     
                                                                               
  Representative Hoffman MOVED to AMEND amendment 2 to add all                 
  $325.0  thousand  dollars  to  the  Alcohol and  Drug  Abuse                 
  Grants.  There being NO OBJECTION, it was so ordered.                        
                                                                               
  Representative Brown spoke against amendment 2.  She pointed                 
  out that the Alaska  State Council on the Arts has  been cut                 
  40  percent in  the  past four  years, and  60 percent  in 8                 
  years.                                                                       
                                                                               
  A roll call vote was taken on the main MOTION as amended.                    
                                                                               
  IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault                        
  OPPOSED:  Brown, Grussendorf, Hoffman, Larson                                
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Representative Navarre MOVED  to ADOPT AMENDMENT 3  (copy on                 
  file).   Amendment 3  would delete  $100.0 thousand  dollars                 
  from Client Services, Vocational Rehabilitation.                             
                                                                               
  STAN RIDGEWAY, DEPUTY  DIRECTOR, VOCATIONAL  REHABILITATION,                 
  DEPARTMENT OF EDUCATION explained that this component serves                 
  all disability groups in Alaska.  The amendment would result                 
  in  an  additional  $100.0  thousand  dollars  reduction  in                 
  federal  funds.    Funds  for  independent living  would  be                 
  impacted.                                                                    
                                                                               
  A roll call vote was taken on the MOTION to adopt  AMENDMENT                 
  3.                                                                           
                                                                               
  IN FAVOR: Brown, Hoffman, Navarre                                            
  OPPOSED:  Grussendorf,  Foster,  Hanley,   Martin,  Parnell,                 
  Therriault,         Larson                                                   
                                                                               
                               15                                              
                                                                               
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative Parnell MOVED  to ADOPT AMENDMENT 4  (copy on                 
  file).  He  explained that  amendment 4  would delete  $54.8                 
  thousand  dollars for the printing of  the Alaska Blue Book;                 
  and add $54.8 thousand dollars to Trial Courts.                              
                                                                               
  Members discussed the  use of the  Alaska Blue Book and  the                 
  availability   of  information   contained   in  the   book.                 
  Representative Martin recommended that sales  of the book be                 
  encouraged.                                                                  
                                                                               
  Representative  Brown  MOVED  to  DIVIDE  the  Question,  to                 
  separate the increment from the decrement.                                   
                                                                               
  Representative Parnell OBJECTED.  A roll call vote was taken                 
  on the MOTION to DIVIDE.                                                     
                                                                               
  IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre                       
  OPPOSED:  Hanley, Martin, Parnell, Therriault, Larson                        
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative  Hoffman  MOVED  to  AMEND  amendment  4,  to                 
  replace Trial Court with the Alcohol and  Drug Abuse Grants.                 
  A roll call vote was taken on the MOTION.                                    
                                                                               
  IN FAVOR: Hanley, Hoffman, Foster                                            
  OPPOSED:  Brown,  Grussendorf,  Martin,   Navarre,  Parnell,                 
  Therriault,         Larson                                                   
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  A roll call vote was taken on the MOTION to  adopt AMENDMENT                 
  4.                                                                           
                                                                               
  IN FAVOR: Hoffman,  Navarre,  Parnell,  Therriault,  Foster,                 
  Hanley                                                                       
  OPPOSED:  Martin, Brown, Grussendorf, Larson                                 
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Representative Parnell MOVED  to ADOPT AMENDMENT 5  (copy on                 
                                                                               
                               16                                              
                                                                               
                                                                               
  file).  He  explained that amendment  5 would delete  $120.9                 
  thousand  dollars  for Alaska  State  Museums and  add $90.0                 
  thousand  dollars  for  Trial Courts,  court  security.   He                 
  emphasized the need to prioritize funding.                                   
                                                                               
  Co-Chair Larson pointed out that state owned artifacts would                 
  have to be moved at additional expense.                                      
                                                                               
  Representative  Foster  spoke  against  amendment  5.     He                 
  emphasized the need to preserve Native artifacts.                            
                                                                               
  Representative  Navarre MOVED  to  DIVIDE  the Question,  to                 
  separate the increment  from the decrement.   Representative                 
  Parnell OBJECTED.  A roll call vote was taken on the MOTION.                 
                                                                               
  IN FAVOR: Navarre, Brown, Grussendorf, Hoffman                               
  OPPOSED:  Martin,  Parnell,   Therriault,  Foster,   Hanley,                 
  Larson                                                                       
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (4-6).                                                     
                                                                               
  A roll call vote was taken on the MOTION  to adopt AMENDMENT                 
  5.                                                                           
                                                                               
  IN FAVOR: Navarre, Parnell, Therriault, Hanley, Martin                       
  OPPOSED:  Brown, Foster, Grussendorf, Hoffman, Larson                        
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative Brown  MOVED to  ADOPT AMENDMENT  6 (copy  on                 
  file).   She  explained  that amendment  6  would add  $50.0                 
  thousand dollars  in contractual for Library Operations; and                 
  delete $50.0 thousand dollars from the Legislative Operating                 
  Budget.   She explained  that the  amendment would  fund the                 
  SLED Program.    The SLED  Program is  a cooperative  effort                 
  between  the University  of  Alaska,  Fairbanks library  and                 
  state libraries.                                                             
                                                                               
  KAREN CRANE, DIRECTOR, LIBRARIES, ARCHIVES AND MUSEUMS spoke                 
  in behalf of  amendment 6.   She explained that the  project                 
  allows  the  state  libraries access  to  the  University of                 
  Alaska database  through the  computer network.   Access  is                 
  available to all students and  teachers and public libraries                 
  throughout  the  state.    The  amendment  would  allow  the                 
  purchase of statewide licenses for  databases of interest to                 
  citizens statewide.                                                          
                                                                               
  Co-Chair  Larson  MOVED  to AMEND  amendment  6,  change the                 
                                                                               
                               17                                              
                                                                               
                                                                               
  funding  source  from  the Legislative  Operating  Budget to                 
  Library grants.                                                              
                                                                               
  Ms. Crane spoke against the funding change.  She  emphasized                 
  that  the  program   would  not  issue  grants   to  smaller                 
  libraries.                                                                   
                                                                               
  Representative Brown  observed that  the legislative  carry-                 
  forward for FY  94 is $3,429.0  million dollars.  She  spoke                 
  against the funding source change.                                           
                                                                               
  Co-Chair Larson WITHDREW his MOTION to amend.                                
                                                                               
  Representative Hanley MOVED  to AMEND amendment 6  to delete                 
  the $50.0  thousand dollars increment.  Representative Brown                 
  OBJECTED.  A roll call vote was taken on the MOTION.                         
                                                                               
  IN FAVOR: Hanley, Martin, Parnell, Therriault, Larson                        
  OPPOSED:  Brown, Foster, Grussendorf, Hoffman, Navarre                       
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  A roll call vote was taken on the MOTION to adopt  AMENDMENT                 
  6.                                                                           
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
  Larson                                                                       
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (4-6).                                                     
                                                                               
  HB 370 was HELD in Committee for further discussion.                         
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 5:50 p.m.                                           
                                                                               
                                                                               
                               18                                              

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