Legislature(1993 - 1994)

04/06/1994 01:39 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                          April 6, 1994                                        
                            1:39 p.m.                                          
                                                                               
  TAPE HFC 94-107, Side 1, #000 - end.                                         
  TAPE HFC 94-107, Side 2, #000 - end.                                         
  TAPE HFC 94-108, Side 1, #000 - 304.                                         
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 1:39 p.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson             Representative Hoffman                           
  Co-Chair MacLean            Representative Martin                            
  Vice-Chair Hanley                                                            
  Representative Brown        Representative Parnell                           
  Representative Foster       Representative Therriault                        
  Representative Grussendorf                                                   
                                                                               
  Representative Navarre was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  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;  Bob Poe, Director, Division                 
  of Information  and Administrative  Services, Department  of                 
  Environmental Conservation; Mike Nizich,  Director, Division                 
  of  Administrative Services,  Office of  the Governor;  Paul                 
  Fuhs,  Acting  Commissioner,  Department   of  Commerce  and                 
  Economic  Development;  Pam   Stoops,  Executive   Director,                 
  Legislative   Affairs   Agency;   McKie   Campbell,   Deputy                 
  Commissioner,   Department   of   Fish   and   Game;   Chris                 
  Christensen,  Staff  Counsel,  Alaska  Court  System;  Janet                 
  Clarke,  Director,  Division  of   Administrative  Services,                 
  Department  of Health  and  Social  Services; Kevin  Brooks,                 
  Director, Division of Administration, Department of Fish and                 
  Game;  Guy   Bell,  Director  of   Administrative  Services,                 
  Department of Commerce and Economic Development.                             
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  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                 
                                                                               
                                1                                              
                                                                               
                                                                               
            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."                 
                                                                               
  DEPARTMENT OF FISH AND GAME                                                  
                                                                               
  Representative Hoffman MOVED to ADOPT  AMENDMENT 1A (copy on                 
  file).   He  explained that  amendment  1A would  add  $40.0                 
  thousand dollars for the Yukon River Drainage Association.                   
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
  IN FAVOR: Foster, Brown, Hoffman, Grussendorf, MacLean                       
  OPPOSED:  Hanley, Martin, Parnell, Therriault, Larson                        
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Co-Chair MacLean MOVED to ADOPT  AMENDMENT 6 (copy on file).                 
  She explained  that amendment  6 would  add $300.0  thousand                 
  dollars  for  Fisheries  Development.   She  noted  that the                 
  Department of Fish and Game will be forced to reduce efforts                 
  for the Alaska Yukon/Kuskokwim Initiative and delete funding                 
  for the Sikusuilaq Hatchery if the amendment is not adopted.                 
                                                                               
  Representative Hanley noted that the Sikusuilaq Hatchery was                 
  given a low priority by the Department of Fish and Game.                     
                                                                               
  MCKIE  CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND                 
  GAME  stated   that  if   the  amendment   is  adopted   the                 
  Commissioner intends to  add $90.0 thousand dollars  to fund                 
  the hatchery at  $390.0 thousand dollars.  He clarified that                 
  program  receipts  may  be  a  future  option  for  hatchery                 
  funding, pending  legislation.  He  observed that Snettisham                 
  and  Sikusuilaq  are the  last  hatcheries to  receive state                 
  support.                                                                     
                                                                               
  Co-Chair  MacLean emphasized  the need  to  allow sufficient                 
  time for the  regional aquaculture association to  take over                 
  the hatchery.                                                                
                                                                               
  A roll call vote was taken on the MOTION to adopt  AMENDMENT                 
  6.                                                                           
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,   Foster,  MacLean,                 
                 Larson                                                        
  OPPOSED:  Hanley, Martin, Parnell, Therriault                                
                                                                               
                                2                                              
                                                                               
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Representative Therriault MOVED  to RESCIND the  Committee's                 
  action in failing to  adopt AMENDMENT 2.  Amendment  2 would                 
  eliminate  the  grant to  the  Walrus Commission.   Co-Chair                 
  MacLean OBJECTED.                                                            
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
  IN FAVOR: Hanley, Martin, Parnell, Therriault, Larson                        
  OPPOSED:  Brown, Foster, Grussendorf, Hoffman, MacLean                       
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative Grussendorf MOVED  to RESCIND the Committee's                 
  action  in  failing to  adopt AMENDMENT  3.   He  noted that                 
  amendment 3 would  restore $460.0 thousand dollars  to allow                 
  operations  of  the  hatchery  until  its  transfer  to  the                 
  Northern Southeast Regional Aquaculture Association.                         
                                                                               
  Mr.  Campbell  observed  that  it  would cost  $4.0  million                 
  dollars to tear the hatchery down and restore the habitat to                 
  its  natural state.    If the  hatchery is  privatized there                 
  would be no need to tear it down.                                            
                                                                               
  Representative Grussendorf  emphasized  the  effect  on  the                 
  Canadian/U.S.  Salmon  Treaty.    He  maintained   that  the                 
  hatchery should be moth balled to allow future use.                          
                                                                               
  Mr.  Campbell  stressed  that  the  hatchery needs  to  stay                 
  operational if it is to be turned  over to a non-profit.  He                 
  discussed the  effect on  fishery stock  and associated  job                 
  dependency.   He addressed the importance of the hatchery on                 
  the  U.S./Canada  Salmon  Treaty.    Discussion  pursued  in                 
  regards to funding and privatization of the hatchery.                        
                                                                               
  REPRESENTATIVE  FRAN ULMER  urged the  Committee to  support                 
  amendment 3.  She  stressed that the hatchery is  a valuable                 
  state asset  that makes  a significant  contribution to  the                 
  economy of Southeast Alaska.  She stressed the importance of                 
  the hatchery to the U.S./Canada  Salmon Treaty and fishermen                 
  of Southeast Alaska.                                                         
                                                                               
  A roll  call vote  was taken on  the MOTION  to rescind  the                 
  Committee's action in failing to adopt AMENDMENT 3.                          
                                                                               
  IN FAVOR: Brown, Hoffman, Grussendorf, MacLean, Larson                       
  OPPOSED:  Foster, Hanley, Martin, Parnell, Therriault                        
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative Therriault MOVED  to ADOPT AMENDMENT 5  at an                 
  amended  level  of $75.0  thousand  dollars (copy  on file).                 
  Amendment 5 would impose a $75.0 thousand dollar unallocated                 
  reduction to the Division of Habitat.                                        
                                                                               
  Mr.  Campbell  asserted  that  amendment   5  would  have  a                 
  significant adverse effect  on development in the  state and                 
  place the state's  waters at risk.   He emphasized that  the                 
  Division of Hatchery is at critical mass.                                    
                                                                               
  A roll  call vote was taken on the MOTION to adopt AMENDMENT                 
  5.                                                                           
                                                                               
  IN FAVOR: Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 Larson                                                        
  OPPOSED:  Brown, Hoffman, Grussendorf, MacLean                               
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Co-Chair  MacLean MOVED to close the  Department of Fish and                 
  Game's FY 95 operating budget.  There being NO OBJECTION, it                 
  was so ordered.                                                              
                                                                               
  (Tape Change, HFC 94-107, Side 2)                                            
                                                                               
  UNIVERSITY OF ALASKA                                                         
                                                                               
  Representative Therriault MOVED  to ADOPT AMENDMENT  9 (copy                 
  on  file).      He  explained  that amendment  9  would  add                 
  legislative intent  to direct  the University  of Alaska  to                 
  continue   initiatives  to  reduce   the  overall   cost  of                 
  instruction; increase faculty and staff productivity; reduce                 
  the level  of academic administration;  increase the  annual                 
  level  of  building  maintenance; enhance  the  transfer  of                 
  credits  between campuses;  and assure that  all unnecessary                 
  program duplication is eliminated.                                           
                                                                               
  There being NO OBJECTION, AMENDMENT 9 was adopted.                           
                                                                               
  Co-Chair MacLean MOVED  to close the University  of Alaska's                 
  FY 95 operating budget.  There being NO OBJECTION, it was so                 
  ordered.                                                                     
                                                                               
  DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                           
                                                                               
  Co-Chair   MacLean  MOVED   to  close   the  Department   of                 
                                                                               
                                4                                              
                                                                               
                                                                               
  Transportation  and  Public  Facilities's  FY  95  operating                 
  budget.  There being NO OBJECTION, it was so ordered.                        
                                                                               
  DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT                              
                                                                               
  Co-Chair MacLean  provided members  with a  letter from  Guy                 
  Bell regarding the Real Estate Surety Fund (copy on file).                   
                                                                               
  GUY  BELL, DIRECTOR,  DIVISION  OF ADMINISTRATIVE  SERVICES,                 
  DEPARTMENT OF  COMMERCE AND  ECONOMIC DEVELOPMENT  discussed                 
  the need  to add  $100.0 thousand  dollars in  appropriation                 
  authority to  allow  the payment  of  claims from  the  Real                 
  Estate Surety Fund.  He explained  that the Fund is composed                 
  of real estate licensing.                                                    
                                                                               
  Co-Chair MacLean noted that amendment  3 deleted funding for                 
  the International Trade Offices.                                             
                                                                               
  PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC                 
  DEVELOPMENT   stressed   the   importance   of   maintaining                 
  international   trade   offices.      He  noted   that   the                 
  international trade for the state of Alaska is $3.5  billion                 
  dollars a year.                                                              
                                                                               
  Mr. Bell recommended  that the  addition of $100.0  thousand                 
  dollars for appropriation  authority to pay claims  from the                 
  Real Estate Surety Fund be placed in the front section of HB
  370.  Discussion pursued in regards  to the addition of this                 
  item in the front section.                                                   
                                                                               
  FRONT SECTION                                                                
                                                                               
  Representative  Martin  MOVED to  ADOPT  AMENDMENT 9  to add                 
  $100.0  thousand dollars in appropriation authority to allow                 
  the payment of  claims from the  Real Estate Surety Fund  by                 
  the Department of Commerce and  Economic Development.  There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT                              
                                                                               
  Co-Chair MacLean MOVED to RESCIND  the Committee's action in                 
  adopting AMENDMENT 3 (copy on file).                                         
                                                                               
  Representative Brown emphasized the need to make priorities.                 
  She recommended that the amendment not be rescinded.                         
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
  IN FAVOR: Foster,  Grussendorf,  Hoffman,   Martin,  Larson,                 
                 MacLean                                                       
  OPPOSED:  Brown, Hanley, Therriault                                          
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  Representatives  Parnell and  Navarre were  absent  from the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (6-3).                                                     
                                                                               
  A roll call vote was taken on the main MOTION.                               
                                                                               
  IN FAVOR: Brown, Hanley, Therriault                                          
  OPPOSED:  Foster,  Grussendorf,  Hoffman,   Martin,  Larson,                 
                 MacLean                                                       
                                                                               
  Representatives  Parnell and  Navarre were  absent from  the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (6-3).                                                     
                                                                               
  Co-Chair MacLean MOVED  to close the Department  of Commerce                 
  and Economic Development's   FY 95 operating budget.   There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  OFFICE OF THE GOVERNOR                                                       
                                                                               
  Co-Chair Larson MOVED to  ADOPT AMENDMENT 3 (copy on  file).                 
  He noted that the  amendment would reduce the Office  of the                 
  Governor by $636.6 thousand dollars.                                         
                                                                               
  MIKE NIZICH, DIRECTOR,  DIVISION OF ADMINISTRATIVE SERVICES,                 
  OFFICE OF  THE GOVERNOR  reviewed amendment  3.   Discussion                 
  pursued in regards to the  roll forward of FY 94 funding  in                 
  the Office of the Governor.                                                  
                                                                               
  There being NO OBJECTION, AMENDMENT 3 was adopted.                           
                                                                               
  Co-Chair MacLean MOVED to close the Office of the Governor's                 
  FY 95 operating budget.  There being NO OBJECTION, it was so                 
  ordered.                                                                     
                                                                               
  ALASKA COURT SYSTEM                                                          
                                                                               
  Representative Therriault  MOVED to ADOPT AMENDMENT  6 (copy                 
  on  file).    Amendment  6   would  reduce  contractual  for                 
  Administrative Support by $150.0 thousand dollars.                           
                                                                               
  CHRIS CHRISTENSEN, ALASKA COURT SYSTEM explained  that lease                 
  hold  money  will   be  used  to  pay  the   operations  and                 
  maintenance on the  Anchorage Times  Building for the  first                 
  year.  He estimated  the amount to lapse at  $100.0 thousand                 
  dollars.   He added that moving costs were not included.  He                 
  requested that the  amendment be  amended to reflect  moving                 
  costs.                                                                       
                                                                               
  Co-Chair  MacLean  MOVED  to  AMEND  amendment 6  to  delete                 
                                                                               
                                6                                              
                                                                               
                                                                               
  "$150.0"    and    insert    "$100.0"   thousand    dollars.                 
  Representative Hanley OBJECTED.  A  roll call vote was taken                 
  on the MOTION.                                                               
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,   Foster,  Parnell,                 
                 MacLean, Larson                                               
  OPPOSED:  Hanley, Therriault, Martin                                         
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  Representative Parnell MOVED to AMEND amendment 6 as amended                 
  to add $90.0  thousand dollars to  fund a prosecutor in  the                 
  Kenai office to work on domestic violence and sexual assault                 
  cases.                                                                       
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,   Martin,  Parnell,                 
                 MacLean, Larson                                               
  OPPOSED:  Hanley, Therriault, Foster                                         
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  A roll call vote was taken  on the MOTION to adopt AMENDMENT                 
  6 as amended.                                                                
                                                                               
  IN FAVOR: Brown,  Grussendorf,   Hoffman,  Hanley,   Martin,                 
                 Parnell, Therriault, MacLean, Larson                          
  OPPOSED:  Foster                                                             
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  Co-Chair MacLean MOVED to close the Alaska Court System's FY                 
  95 operating budget.   There being  NO OBJECTION, it was  so                 
  ordered.                                                                     
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
  Co-Chair Larson WITHDREW AMENDMENT 1 and 2.                                  
                                                                               
  Representative Hoffman MOVED  to ADOPT AMENDMENT 3  (copy on                 
  file).   He  explained that  amendment  3 would  add  $573.1                 
  thousand dollars for the Fair Business Practices component.                  
                                                                               
  Representative Martin OBJECTED.  A  roll call vote was taken                 
  on the MOTION.                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  IN FAVOR: Brown,  Foster,  Grussendorf,   Hoffman,  MacLean,                 
                 Larson                                                        
  OPPOSED:  Hanley, Martin, Parnell, Therriault                                
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Co-Chair  MacLean MOVED to close  the Department of Law's FY                 
  95 operating budget.   There being  NO OBJECTION, it was  so                 
  ordered.                                                                     
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
  JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT  OF  HEALTH  AND SOCIAL  SERVICES  discussed  the                 
  medicaid  priority  list,  in  response  to  a  question  by                 
  Representative  Brown.      She  explained  that  the  total                 
  reduction  in  medicaid services  is  $4.6 million  dollars.                 
  There would be 10 services dropped from the list.                            
                                                                               
  (Tape Change, HFC 94-108, Side 2)                                            
                                                                               
  Ms.  Clarke  reviewed  services  which  would  be   deleted.                 
  Discussion pursued in regards to the services which would be                 
  dropped.                                                                     
                                                                               
  Co-Chair MacLean MOVED to close the Department of Health and                 
  Social  Services' FY 95  operating budget.   There  being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  LEGISLATURE                                                                  
                                                                               
  PAM STOOPS,  EXECUTIVE DIRECTOR, LEGISLATIVE  AFFAIRS AGENCY                 
  observed  that  the  future legislators  will  be  given the                 
  option to adopt the increased per diem rate.                                 
                                                                               
  Representative Martin spoke against adoption of the  session                 
  per diem rate increase.                                                      
                                                                               
  Co-Chair Larson MOVED  to RESCIND the Committee's  action in                 
  deleting  $405.6 thousand  dollars  for  session  per  diem.                 
  Representative Martin OBJECTED.  A roll call vote  was taken                 
  on the MOTION.                                                               
                                                                               
  IN FAVOR: Parnell, Foster, Hoffman, Larson, MacLean                          
  OPPOSED:  Therriault, Brown, Grussendorf, Hanley, Martin                     
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
                                8                                              
                                                                               
                                                                               
  Co-Chair  MacLean  MOVED to  close  the Legislature's  FY 95                 
  operating budget.    There being  NO  OBJECTION, it  was  so                 
  ordered.                                                                     
                                                                               
  DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                     
                                                                               
  Representative  Brown  MOVED  to  close  the  Department  of                 
  Environmental   Conservation's   FY  95   operating  budget.                 
  Representative Therriault OBJECTED.                                          
                                                                               
  Representative  Therriault  spoke  against the  adoption  of                 
  AMENDMENT  8  (copy on  file).   Amendment  8 would  fund an                 
  $246.1 thousand  dollars increment  for environmental  crime                 
  investigation from the Storage Tank Assistance Program.                      
                                                                               
  BOB   POE,    DIRECTOR,   DIVISION   OF    INFORMATION   AND                 
  ADMINISTRATIVE   SERVICES,   DEPARTMENT   OF   ENVIRONMENTAL                 
  CONSERVATION  spoke in support of  amendment 8.  He observed                 
  that the Department  of Law must prioritize  violent crimes.                 
  He  stressed  the importance  of  funding  for environmental                 
  crime investigation.   He noted that funding  would be RSA'd                 
  to the Departments of Law and Public Safety.                                 
                                                                               
  Representative Brown spoke in  support of amendment 8.   She                 
  observed that the state  must demonstrate enforcement effort                 
  in order to retain primacy.                                                  
                                                                               
  A roll  call  vote was  taken  on the  MOTION to  close  the                 
  Department of  Commerce  and Economic  Development's  FY  95                 
  operating budget.                                                            
                                                                               
  IN FAVOR: Parnell,  Brown,  Grussendorf,   Hoffman,  Martin,                 
                 MacLean                                                       
  OPPOSED:  Therriault, Foster, Hanley, Larson                                 
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  HB 370 was HELD in Committee for further discussion.                         
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:50 p.m.                                           
                                                                               
                                                                               
                                9                                              

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