Legislature(1993 - 1994)
04/06/1994 08:35 AM House FIN
| Audio | Topic |
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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 6, 1994
8:35 A.M.
TAPE HFC 94 - 106, Side 1, #000 - end.
TAPE HFC 94 - 106, Side 2, #000 - #512.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:35 A.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Foster
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Navarre was not present for the meeting.
ALSO PRESENT
Mike Greany, Director, Legislative Finance Division; Nico
Bus, Director, Division of Administrative Services,
Department of Natural Resources; John Cramer, (Testified via
teleconference), Director, Division of Agriculture,
Department of Natural Resources; Bob Poe, Director, Division
of Administrative Services, Department of Environmental
Conservation; John Burnett, Program Manager, Underground
Storage Tank Program, Division of Spill Prevention &
Response, Department of Environmental Conservation.
SUMMARY
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.
HOUSE BILL 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."
Department of Public Safety
1
Co-Chair MacLean MOVED to adopt the Department of Public
Safety's budget as amended by the House Finance Committee.
There being NO OBJECTION, it was adopted.
Department of Natural Resources
Co-Chair Larson MOVED TO RESCIND previous action taken on
Amendment #2. Representative Martin OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Grussendorf, Hoffman, MacLean,
Larson.
OPPOSED: Therriault, Brown, Hanley, Martin.
Representatives Foster and Navarre were not present for the
vote.
The MOTION PASSED (5-4).
Representative Hanley MOVED to adopt Amendment #2. Co-Chair
Larson explained that if the Division of Agriculture's
program is diluted, the emphasis on agriculture in Alaska
will vanish. He emphasized that agriculture is a viable
industry in the State. Discussion followed among Committee
members regarding forest management and development and
forestry and agricultural development within the State.
NICO BUS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF NATURAL RESOURCES, noted that the merger of
the Division of Agriculture and Forestry would be handled by
assigning those functions to the Deputy Director, Division
of Forestry. He added that the Division of Agriculture
currently is at a critical point in development and should
be given further consideration, as it is a viable $30
million dollar industry. Mr. Bus spoke in opposition to
Amendment #2.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Brown, Hanley, Martin.
OPPOSED: Foster, Grussendorf, Hoffman, Parnell,
Larson, MacLean.
Representative Navarre was not present for the vote.
The MOTION FAILED (4-6).
Co-Chair Larson advised that Amendment #3 would restore the
program receipt authority which had been reduced by the
Department of Natural Resources (DNR) Subcommittee. He
2
added that within the Governor's budget, $270.8 in general
funds was transferred from the Division of Agriculture to
other DNR divisions. In return, the Division of Agriculture
was given $240.8 program receipt authority to compensate for
that transferred money.
JOHN CRAMER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF AGRICULTURE, DEPARTMENT OF NATURAL RESOURCES,
advised that the Division asks that they be allowed to
request further funding from Legislative Budget and Audit
Committee if needed revenues can not be generated. He added
that currently a demand exists for the land and the Division
wants the opportunity to pursue that interest.
Representative Brown questioned the authority that sale of
state assets be called program receipts explaining that
program receipts occur when activities exist that generate
fee receipts. Mr. Bus replied that the principle would be
placed into the general fund and the interest would be used
for the administration of that program.
Representative Brown inquired how the agricultural disposal
would affect the Point Hope project. Mr. Cramer explained
that those agricultural parcel lands were originally Mental
Health Trust lands. Each one of the parcels is currently
involved in the mental health trust litigation. He added
that when the litigation is settled, the Department would
actively pursue disposing of those lands. Representative
Brown disagreed with that recommendation.
Representative Brown MOVED TO AMEND Amendment #3 deleting
the program receipt funding and replacing it with general
fund receipts. Representative Martin OBJECTED.
Representative Brown advised that it would be inappropriate
to sell state assets and refer to them as program receipts.
Discussion followed among Committee members regarding the
project and the use of program receipt funding.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman.
OPPOSED: Foster, Hanley, Martin, Parnell,
Therriault, Larson.
Representatives MacLean and Navarre were not present for the
vote.
The MOTION FAILED (3-6).
Co-Chair Larson MOVED to adopt Amendment #3.
A roll call was taken on the MOTION.
3
IN FAVOR: Foster, Grussendorf, Martin, Larson.
OPPOSED: Hanley, Hoffman, Parnell, Therriault,
Brown.
Representatives MacLean and Navarre were not present for the
vote.
The MOTION FAILED (4-5).
Representative Martin MOVED to adopt the Department of
Natural Resources' budget as amended by the House Finance
Committee. There being NO OBJECTION, it was adopted.
(Tape Change, HFC 94-106, Side 2).
Department of Environmental Conservation
Representative Brown MOVED TO RESCIND action taken on
Amendment #6, explaining that if the move to rescind action
is adopted, the funding source should be changed to the
Exxon Valdez Settlement funds. Representative Brown
indicated support from the Department for the proposed
change.
BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC), pointed out
that last year, there was $5 million dollars allocated for
research grants for clean up from oil spills. With the
current language, funds are not available for the
administration of those awards. The Department is
requesting that $51.5 thousand dollars be earmarked to
assist in the management of those grants. Representative
Martin OBJECTED.
Mr. Poe pointed out that the money allocated is both trust
money and settlement money as provided in legislation from
FY94, CS HB 183 (FIN). That legislation outlined how those
funds were to be used. Co-Chair Larson asked if the funds
would be reappropriated. Representative Therriault stated
they would.
MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE,
advised that the funds in question are existing funds which
have already been appropriated. There is no new settlement
allocation. He indicated that the preferred approach would
be consideration of the request as a reappropriation.
Representative Brown WITHDREW THE MOTION TO RESCIND action.
There being NO OBJECTION, the motion was withdrawn.
Representative Brown MOVED to adopt Amendment #9 which would
allow the Storage Tank Assistance Program to continue
4
administrative and technical assistance responsibilities.
She added that $4.5 million dollars would be eliminated for
this fiscal year for grant requests to private businesses,
which would leave $1.5 million dollars for maintenance
operations.
JOHN BURNETT, EXECUTIVE DIRECTOR, UNDERGROUND STORAGE TANK
PROGRAM, DIVISION OF SPILL PREVENTION & RESPONSE, DEPARTMENT
OF ENVIRONMENTAL CONSERVATION, provided the Committee with a
summary sheet of actions taken by the subcommittee and the
House Finance Committee. [Copy on file]. The Storage Tank
Assistance Fund does not issue single grants for a complete
project in any given year. The grants are distributed as
"phase" projects which allows distribution for the greatest
need during the year.
Mr. Burnett added that the amount proposed by the DEC
Subcommittee would not be enough to maintain the current
clean-up grants. The Department is required to maintain
ground water recovery systems which restore drinking water
supplies throughout the State. There are not sufficient
funds to address those concerns. Representative Martin
recommended that large companies provide mutual effort grant
matching.
Mr. Burnett explained that the problem with some facilities
is that the tanks are out of the ground and consequently,
there is no revenue or income to pay back the loans until
the necessary recovery systems are installed. These
companies participate contributing 10% of the clean-up
costs. Discussion followed among Committee members and Mr.
Burnett regarding the priorities and base amount needed to
continue on-going operations.
Representative Brown advised that a funding source other
than general funds should be considered and recommended
adding a one cent tax to address those needs.
Representative Therriault requested further consideration of
Amendment #8.
Co-Chair MacLean reminded the Committee that there was a $2
million dollar allocation request in the capital budget for
above ground storage tanks. She added that additionally it
would cost $5 million dollars per village to clean-up the
above ground storage tanks. Representative Hoffman
recommended that the appropriation be divided 50/50 for
above and below ground tanks.
Co-Chair MacLean MOVED to adopt the Department of
Environmental Conservation's budget as amended by the House
Finance Committee. Amendments #8 & #9 were HELD for further
5
consideration. There being NO OBJECTION, it was adopted.
HB 370 was HELD for further consideration.
ADJOURNMENT
The meeting adjourned at 10:10 A.M.
HOUSE FINANCE COMMITTEE
April 6, 1994
8:35 A.M.
TAPE HFC 94 - 106, Side 1, #000 - end.
TAPE HFC 94 - 106, Side 2, #000 - #512.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:35 A.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Foster
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Navarre was not present for the meeting.
ALSO PRESENT
Mike Greany, Director, Legislative Finance Division; Nico
Bus, Director, Division of Administrative Services,
Department of Natural Resources; John Cramer, (Testified via
teleconference), Director, Division of Agriculture,
Department of Natural Resources; Bob Poe, Director, Division
of Administrative Services, Department of Environmental
Conservation; John Burnett, Program Manager, Underground
Storage Tank Program, Division of Spill Prevention &
Response, Department of Environmental Conservation.
SUMMARY
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.
6
HOUSE BILL 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."
Department of Public Safety
Co-Chair MacLean MOVED to adopt the Department of Public
Safety's budget as amended by the House Finance Committee.
There being NO OBJECTION, it was adopted.
Department of Natural Resources
Co-Chair Larson MOVED TO RESCIND previous action taken on
Amendment #2. Representative Martin OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Grussendorf, Hoffman, MacLean,
Larson.
OPPOSED: Therriault, Brown, Hanley, Martin.
Representatives Foster and Navarre were not present for the
vote.
The MOTION PASSED (5-4).
Representative Hanley MOVED to adopt Amendment #2. Co-Chair
Larson explained that if the Division of Agriculture's
program is diluted, the emphasis on agriculture in Alaska
will vanish. He emphasized that agriculture is a viable
industry in the State. Discussion followed among Committee
members regarding forest management and development and
forestry and agricultural development within the State.
NICO BUS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF NATURAL RESOURCES, noted that the merger of
the Division of Agriculture and Forestry would be handled by
assigning those functions to the Deputy Director, Division
of Forestry. He added that the Division of Agriculture
currently is at a critical point in development and should
be given further consideration, as it is a viable $30
million dollar industry. Mr. Bus spoke in opposition to
Amendment #2.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Brown, Hanley, Martin.
OPPOSED: Foster, Grussendorf, Hoffman, Parnell,
Larson, MacLean.
7
Representative Navarre was not present for the vote.
The MOTION FAILED (4-6).
Co-Chair Larson advised that Amendment #3 would restore the
program receipt authority which had been reduced by the
Department of Natural Resources (DNR) Subcommittee. He
added that within the Governor's budget, $270.8 in general
funds was transferred from the Division of Agriculture to
other DNR divisions. In return, the Division of Agriculture
was given $240.8 program receipt authority to compensate for
that transferred money.
JOHN CRAMER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF AGRICULTURE, DEPARTMENT OF NATURAL RESOURCES,
advised that the Division asks that they be allowed to
request further funding from Legislative Budget and Audit
Committee if needed revenues can not be generated. He added
that currently a demand exists for the land and the Division
wants the opportunity to pursue that interest.
Representative Brown questioned the authority that sale of
state assets be called program receipts explaining that
program receipts occur when activities exist that generate
fee receipts. Mr. Bus replied that the principle would be
placed into the general fund and the interest would be used
for the administration of that program.
Representative Brown inquired how the agricultural disposal
would affect the Point Hope project. Mr. Cramer explained
that those agricultural parcel lands were originally Mental
Health Trust lands. Each one of the parcels is currently
involved in the mental health trust litigation. He added
that when the litigation is settled, the Department would
actively pursue disposing of those lands. Representative
Brown disagreed with that recommendation.
Representative Brown MOVED TO AMEND Amendment #3 deleting
the program receipt funding and replacing it with general
fund receipts. Representative Martin OBJECTED.
Representative Brown advised that it would be inappropriate
to sell state assets and refer to them as program receipts.
Discussion followed among Committee members regarding the
project and the use of program receipt funding.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman.
OPPOSED: Foster, Hanley, Martin, Parnell,
Therriault, Larson.
8
Representatives MacLean and Navarre were not present for the
vote.
The MOTION FAILED (3-6).
Co-Chair Larson MOVED to adopt Amendment #3.
A roll call was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Martin, Larson.
OPPOSED: Hanley, Hoffman, Parnell, Therriault,
Brown.
Representatives MacLean and Navarre were not present for the
vote.
The MOTION FAILED (4-5).
Representative Martin MOVED to adopt the Department of
Natural Resources' budget as amended by the House Finance
Committee. There being NO OBJECTION, it was adopted.
(Tape Change, HFC 94-106, Side 2).
Department of Environmental Conservation
Representative Brown MOVED TO RESCIND action taken on
Amendment #6, explaining that if the move to rescind action
is adopted, the funding source should be changed to the
Exxon Valdez Settlement funds. Representative Brown
indicated support from the Department for the proposed
change.
BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC), pointed out
that last year, there was $5 million dollars allocated for
research grants for clean up from oil spills. With the
current language, funds are not available for the
administration of those awards. The Department is
requesting that $51.5 thousand dollars be earmarked to
assist in the management of those grants. Representative
Martin OBJECTED.
Mr. Poe pointed out that the money allocated is both trust
money and settlement money as provided in legislation from
FY94, CS HB 183 (FIN). That legislation outlined how those
funds were to be used. Co-Chair Larson asked if the funds
would be reappropriated. Representative Therriault stated
they would.
MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE,
advised that the funds in question are existing funds which
9
have already been appropriated. There is no new settlement
allocation. He indicated that the preferred approach would
be consideration of the request as a reappropriation.
Representative Brown WITHDREW THE MOTION TO RESCIND action.
There being NO OBJECTION, the motion was withdrawn.
Representative Brown MOVED to adopt Amendment #9 which would
allow the Storage Tank Assistance Program to continue
administrative and technical assistance responsibilities.
She added that $4.5 million dollars would be eliminated for
this fiscal year for grant requests to private businesses,
which would leave $1.5 million dollars for maintenance
operations.
JOHN BURNETT, EXECUTIVE DIRECTOR, UNDERGROUND STORAGE TANK
PROGRAM, DIVISION OF SPILL PREVENTION & RESPONSE, DEPARTMENT
OF ENVIRONMENTAL CONSERVATION, provided the Committee with a
summary sheet of actions taken by the subcommittee and the
House Finance Committee. [Copy on file]. The Storage Tank
Assistance Fund does not issue single grants for a complete
project in any given year. The grants are distributed as
"phase" projects which allows distribution for the greatest
need during the year.
Mr. Burnett added that the amount proposed by the DEC
Subcommittee would not be enough to maintain the current
clean-up grants. The Department is required to maintain
ground water recovery systems which restore drinking water
supplies throughout the State. There are not sufficient
funds to address those concerns. Representative Martin
recommended that large companies provide mutual effort grant
matching.
Mr. Burnett explained that the problem with some facilities
is that the tanks are out of the ground and consequently,
there is no revenue or income to pay back the loans until
the necessary recovery systems are installed. These
companies participate contributing 10% of the clean-up
costs. Discussion followed among Committee members and Mr.
Burnett regarding the priorities and base amount needed to
continue on-going operations.
Representative Brown advised that a funding source other
than general funds should be considered and recommended
adding a one cent tax to address those needs.
Representative Therriault requested further consideration of
Amendment #8.
Co-Chair MacLean reminded the Committee that there was a $2
million dollar allocation request in the capital budget for
above ground storage tanks. She added that additionally it
10
would cost $5 million dollars per village to clean-up the
above ground storage tanks. Representative Hoffman
recommended that the appropriation be divided 50/50 for
above and below ground tanks.
Co-Chair MacLean MOVED to adopt the Department of
Environmental Conservation's budget as amended by the House
Finance Committee. Amendments #8 & #9 were HELD for further
consideration. There being NO OBJECTION, it was adopted.
HB 370 was HELD for further consideration.
ADJOURNMENT
The meeting adjourned at 10:10 A.M.
11
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