Legislature(1997 - 1998)

03/26/1997 02:15 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 HOUSE FINANCE COMMITTEE                                                       
 MARCH 26, 1997                                                                
 2:15 P.M.                                                                     
                                                                               
TAPE HFC 97 - 81, Side 1, #000 - end.                                          
TAPE HFC 97 - 81, Side 2, #000 - end.                                          
TAPE HFC 97 - 82, Side 1, #000 - end.                                          
TAPE HFC 97 - 82, Side 2, #000 - end.                                          
TAPE HFC 97 - 83, Side 1, #000- #131.                                          
                                                                               
CALL TO ORDER                                                                  
                                                                               
Co-Chair Mark Hanley called the House Finance Committee meeting to             
order at 2:15 P.M.                                                             
                                                                               
PRESENT                                                                        
                                                                               
Co-Chair Hanley   Representative Kelly                                         
Co-Chair Therriault   Representative Kohring                                   
Representative Davies  Representative Martin                                   
Representative Davis  Representative Moses                                     
Representative Foster  Representative Mulder                                   
Representative Grussendorf                                                     
                                                                               
ALSO PRESENT                                                                   
                                                                               
Representative Alan Austerman; Representative Gene Kubina; Bob                 
Cole, Director, Division of Administrative Services, Department of             
Corrections; Kyle Johansen, Staff, Bill Williams; Randy Welker,                
Legislative Auditor, Legislative Audit Division; Virginia Stonkus,             
Fiscal Analyst, Legislative Finance Division; Dan Spencer, Budget              
Analyst, Office of Management and Budget, Office of the Governor.              
                                                                               
SUMMARY                                                                        
                                                                               
HB 75 An Act making appropriations for the operating and loan                  
program expenses of state government, for certain                              
programs, and to capitalize funds; and providing for an                        
effective date.                                                                
                                                                               
 HB 75 was HELD in Committee for further discussion.                           
                                                                               
HB 76 An Act making appropriations for the operating expenses of               
the state's integrated comprehensive mental health                             
program; and providing for an effective date.                                  
                                                                               
 HB 76 was HELD in Committee for further discussion.                           
                                                                               
AMENDMENTS:                                                                    
                                                                               
 DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                      
 DEPARTMENT OF NATURAL RESOURCES                                               
 OFFICE OF THE GOVERNOR                                                        
 DEPARTMENT OF CORRECTIONS                                                     
 FRONT SECTION                                                                 
 STATEWIDE                                                                     
HOUSE BILL 75                                                                  
                                                                               
 "An Act making appropriations for the operating and loan                      
program expenses of state government, for certain programs,                    
and to capitalize funds; and providing for an effective                        
date."                                                                         
HOUSE BILL 76                                                                  
                                                                               
 "An Act making appropriations for the operating expenses of                   
the state's integrated comprehensive mental health program;                    
and providing for an effective date."                                          
                                                                               
DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                       
                                                                               
Co-Chair Therriault MOVED to adopt DEC-#5.  [Copy on file].                    
                                                                               
He explained that the amendment would increase the State Emergency             
Response Commission/LEPC grants to the second refined requested                
level by SERC.  Preliminary request to Department of Environmental             
Conservation (DEC) was $576 thousand dollars, refined request to               
DEC was $422 thousand dollars, second refined request was $351                 
thousand dollars.  The amount allocated in the Governor's budget               
was $311 thousand dollars.  The Administration has offered no                  
explanation as to why the requested amount was not considered.                 
                                                                               
Co-Chair Therriault pointed out that the amendment would add an                
increase of $39.7 thousand dollars in Response Fund expenditures               
which would not affect the general fund line while at the same                 
time would bring the LEPC's funding to the second refined                      
requested amount.  There being NO OBJECTION, DEC-#5 was adopted.               
                                                                               
Representative Kohring WITHDREW DEC-#6. [Copy on file].  There                 
being NO OBJECTION, it was withdrawn.                                          
                                                                               
Representative J. Davies MOVED to adopt DEC-#7.  Representative                
Kohring OBJECTED for the purpose of discussion.                                
                                                                               
Representative J. Davies explained that the amendment would                    
provide the necessary funding to allow the unit to continue                    
investigation and prosecution of individuals who willingly and                 
willfully disregard laws that protect public health.                           
                                                                               
Representative Kohring spoke of the Subcommittee's intent in                   
addressing the Department of Environmental's budget actions.  He               
noted that the Criminal Investigation Unit is an aggressive entity             
and with an unreasonable approach.  He suggested that the                      
Department should "shift" money from within other BRU's.                       
                                                                               
Representative J. Davies noted that he was not aware of specific               
instances in which the Unit had been overly aggressive.  The                   
Subcommittee's proposed reduction would prelude DEC from                       
investigating and prosecuting individuals whose activities                     
endanger public health, as reflected in the following actual                   
cases:                                                                         
                                                                               
 *Intentional discharge of sewage into the Kenai River;                        
 *Intentional discharge of sewage into residential areas                       
where children become exposed to fecal water;                                  
 *Misrepresentation of real estate as it relates to on-                        
site septic systems;                                                           
 *Dumping hazardous materials along a riverbank;                               
 *Failure to perform required tests on seafood to ensure                       
safe consumption for people.                                                   
                                                                               
Representative Kohring MOVED to amend DEC-#7, deleting $148.0 GF               
and inserting $98.0 GF.  There being NO OBJECTION to the change,               
it was incorporated.  There being NO OBJECTION to the amended DEC-             
                                                                               
Representative J. Davies MOVED to adopt DEC-#8.  [Copy on file].               
Representative Kohring OBJECTED.                                               
                                                                               
Representative J. Davies explained that the amendment would                    
restore funding for the Kodiak Inspector's position and would                  
allow Kodiak seafood processors and the Kodiak Livestock Company               
to continue to sell their products in national and foreign                     
markets.                                                                       
                                                                               
Representative Kohring agreed the importance of the position.  He              
emphasized that it should not be threatened as a result of cutting             
the budget.  The Subcommittee's intent was to cut communications,              
rentals and leases.                                                            
                                                                               
Representative J. Davies commented that the Legislature has                    
established positions of "charge-backs" to the Department of                   
Administration (DOA) to address these concerns.  Consumers are                 
being asked to pay for the things that they are consuming.  The                
intent is that agencies will become more careful in the way they               
spend their budget.  DOA must be given the opportunity to make                 
adjustments and that the amount charged in the prior fiscal year               
was too low.                                                                   
                                                                               
Representative Kohring responded that system wide, the Department              
is charging exorbitant numbers.  He suggested that since DEC is                
being cut and they disagree with the cuts, they are attempting to              
obtain additional revenue reflected in the inflated charged rates.             
                                                                               
                                                                               
Representative Grussendorf reminded members that the entire                    
fishing and meat industry will be held responsible for any                     
problems.  Inspection is essential and the Department must make                
the cuts at some level.  He encouraged members to support DEC-#8.              
 Representative Kohring pointed out that there are 32 inspector                
positions statewide and he felt that one should be moved to                    
Kodiak.                                                                        
REPRESENTATIVE ALAN AUSTERMAN noted that the position would                    
directly affect his district.  If it was the intent of the                     
Administration to place in jeopardy the commercial industry, he                
recommended that the Legislature should "call their bluff".  The               
seafood industry can work without an inspector on site.  He                    
pointed out that Kodiak has the biggest processing responsibility              
outside of Unalaska.  If something happens, that responsibility                
will fall back onto the Administration.                                        
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Moses, J. Davies, Grussendorf                                       
 OPPOSED: Kelly, Kohring, Martin, Mulder, G. Davis, Foster,                    
Hanley, Therriault.                                                            
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative J. Davies WITHDREW DEC-#9.  [Copy on file].  There              
being NO OBJECTION, it was withdrawn.                                          
                                                                               
Representative J. Davies MOVED to adopt DEC-#10.  [Copy on file].              
 Representative Kohring OBJECTED.                                              
                                                                               
Representative J. Davies explained that the amendment would                    
restore the amount necessary to fund travel for the Joint Pipeline             
Office liaison at the request of and funded by receipts from                   
industry and for travel costs associated with DEC's participation              
on the Kenai River Advisory Board monthly meetings in Soldotna.                
Without the travel funding, DEC will not be represented for Lease              
Sales 85A, as well as water quality protection for the Kenai                   
River.  Representative Kohring disagreed that travel money should              
be added back into the budget.                                                 
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Moses, Mulder, J. Davies, Grussendorf, Kelly                        
 OPPOSED: Kohring, Martin, G. Davis, Foster, Therriault,                       
Hanley                                                                         
                                                                               
The MOTION FAILED (5-6).                                                       
                                                                               
Representative J. Davies MOVED to adopt DEC-#11.  [Copy on file].              
 Representative Kohring OBJECTED.                                              
                                                                               
Representative J. Davies explained that the amendment would                    
restore the funding necessary to maintain and repair laboratory                
equipment which is used to analyze raw fish, finished and value                
added seafood, dairy, red meat and other food products to ensure               
safety for the consuming public.  In addition, the equipment would             
be used to test water and soil samples for contaminants that may               
impact human health.  Denial of funding would result in                        
maintenance and repairs being deferred, delays in completing                   
required tests and possible endangerment of public health.                     
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Moses, J. Davies, Grussendorf                                       
 OPPOSED: Martin, Mulder, G. Davis, Foster, Kelly, Kohring,                    
Hanley, Therriault                                                             
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
DEPARTMENT OF NATURAL RESOURCES                                                
                                                                               
Representative Kelly revised DNR-#1 changing the BRU component to              
Parks and Rec Management, Historical Preservation Office for $50               
thousand dollars and the component of Parks Management for $50                 
thousand dollars.  An additional BRU for Resource Development,                 
component Water Development add an additional $50 thousand                     
dollars.  Representative Kelly MOVED the amended DNR-#1.  [Copy on             
file].  Representative J. Davies asked to change the Parks                     
Management unit to $52.5 thousand dollars.  Representative Kelly               
stated that would be a "friendly" change.  There being NO                      
OBJECTION to the amended DNR-#1, it was adopted.                               
                                                                               
Representative Kelly MOVED to adopt DNR-#2.  [Copy on file].                   
There being NO OBJECTION, the amendment was adopted.                           
                                                                               
Representative J. Davies revised DNR-#3 deleting $189.3 thousand               
dollars and inserting $131.4 thousand dollars.  Representative J.              
Davies MOVED to adopt DNR-#3.  [Copy on file].  Co-Chair Hanley                
OBJECTED.                                                                      
                                                                               
Representative J. Davies explained that DNR-#3 would restore full              
funding for the component which would ensure that the current                  
level of service could be maintained and that parks could                      
accommodate the increasing number of visitors who annually spend               
many dollars in the State.                                                     
                                                                               
Representative Kelly countered, the subcommittee realized that                 
there would be impacts and decided to cut this area rather than                
water development.                                                             
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Moses, J. Davies, Grussendorf                                       
 OPPOSED: Mulder, G. Davis, Foster, Kelly, Kohring, Martin,                    
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative J. Davies MOVED to adopt DNR-#4.  [Copy on file].               
Representative Kelly requested to AMEND DNR-#4 by deleting $75                 
thousand dollars from the component of Geological Development and              
in the BRU Admin, $40 thousand dollars from the Recorders Office.              
                                                                               
Representative Grussendorf questioned the effect of the deduction              
to the recorder's office.  Representative Kelly stated that it                 
would not have a negative effect as it had been added to and then              
was removed from the Governor's requested amount.  There being NO              
OBJECTION, DNR-#4 was adopted.                                                 
                                                                               
Representative J. Davies MOVED to adopt DNR-#5.  [Copy on file].               
Representative Kelly OBJECTED.                                                 
                                                                               
Representative J. Davies explained that DNR-#5 would restore                   
funding for the assistant to the Commissioner, two development                 
specialists and a Natural Resource's officer.  He stressed that                
agriculture was underfunded in the State and that removal of the               
positions would provide for the demise of the program.                         
                                                                               
Representative Kelly clarified that the program had been funded                
under the Agriculture Revolving Loan Fund (ARLF).  Representative              
Davies pointed out that he was advocating for a funding switch                 
from ARLF to general funds.                                                    
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: J. Davies, Grussendorf, Moses                                       
 OPPOSED: Mulder, G. Davis, Foster, Kelly, Kohring, Hanley,                    
Therriault                                                                     
                                                                               
Representative Martin was not present for the vote.                            
                                                                               
The MOTION FAILED (3-7).                                                       
                                                                               
Representative J. Davies MOVED to adopt DNR-#6.  [Copy on file].               
Co-Chair Hanley OBJECTED.                                                      
                                                                               
(Tape Change HFC 97-81, Side 2).                                               
                                                                               
Representative J. Davies explained that DNR-#6 would provide                   
additional funding, reducing permitting and lease time. He pointed             
out that would be an addition to the Governor's request.                       
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: J. Davies, Grussendorf, Moses                                       
 OPPOSED: G. Davis, Foster, Kelly, Kohring, Martin, Mulder,                    
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative J. Davies MOVED to adopt DNR-#7.  [Copy on file].               
He pointed out the funds used would be from the ARLF funds.                    
Representative Kelly stated that he did not object to the                      
recommendation.  There being NO OBJECTION, DNR-#7 was adopted.                 
                                                                               
Representative J. Davies MOVED to adopt DNR-#8.  [Copy on file].               
Co-Chair Therriault OBJECTED.  Representative J. Davies commented              
that the amendment would restore the funding level to State Fairs.             
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR:  Grussendorf, Moses, J. Davies                                      
 OPPOSED: G. Davis, Foster, Kelly, Kohring, Martin, Mulder,                    
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative J. Davies MOVED to adopt DNR-#9.  [Copy on file].               
Co-Chair Hanley OBJECTED.                                                      
                                                                               
Representative J. Davies explained that the amendment would allow              
the state parks to be supported by "user" fees.  He pointed out                
that eighty percent of the visitation to the parks is from Alaska              
residents.  He proposed that the $2.2 million dollar program                   
receipts in the Department's budget be split in half.  Co-Chair                
Hanley stated that the amendment would have little impact and that             
he would prefer to keep it the way in which the Department had                 
structured the use.  Representative J. Davies explained that the               
Department did not object to the amendment and that the amendment              
would not impact the bottom line.                                              
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Grussendorf, Kelly, J. Davies                                       
 OPPOSED: Foster, Kohring, Martin, Mulder, G. Davis,                           
Therriault, Hanley                                                             
                                                                               
Representative Moses was not present for the vote.                             
                                                                               
The MOTION FAILED (3-7).                                                       
                                                                               
OFFICE OF THE GOVERNOR                                                         
                                                                               
Representative Foster MOVED to adopt the revised GOV-#1.  [Copy on             
file].                                                                         
                                                                               
KYLE JOHANSEN, STAFF, REPRESENTATIVE BILL WILLIAMS, noted that the             
special project funding in the amount of $75 thousand dollars was              
intended for the Southeast sea urchin fishery.  To date, the                   
amount previously funded in combination with GOV-#1 would provide              
$171 thousand dollars.  There being NO OBJECTION, GOV-#1 was                   
adopted.                                                                       
DEPARTMENT OF CORRECTIONS                                                      
                                                                               
Representative J. Davies MOVED to adopt COR-#1.  [Copy on file].               
Representative Mulder OBJECTED.                                                
                                                                               
REPRESENTATIVE GENE KUBINA explained that the amendment would                  
restore $1.5 million dollars to the entire BRU.  He stated that                
the proposed cuts would force a 92 position vacancy within the                 
institution for the next fiscal year.  That reduction would fall               
mostly upon the Division of Institutions.  The unallocated amount              
coupled with premium pay reductions, would add 29 more forced                  
vacancy throughout the twelve institutions.                                    
                                                                               
Representative Mulder spoke against COR-#1 noting that the                     
Department of Corrections budget over the past three years has                 
been increased over $13 million dollars.  The level of reduction               
in the referenced BRU is 2.577 below the FY97 authorized level                 
with authorization to carry forward spending.  He added, the                   
subcommittee's intent was to bring down the average cost per day               
per inmate.  He noted that the current cost is $105 dollars per                
day.                                                                           
                                                                               
ROBERT COLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                    
DEPARTMENT OF CORRECTIONS, commented that in FY95, the Department              
inherited a $13.5 million dollar supplemental.  That fiscal year,              
the supplemental was reduced to $7 million dollars.  Of the $14                
million difference between the FY96 and FY98 request, about $5                 
million was for the out-of-state contract and the additional $4.8              
million dollars was for the community jails.  Consequently, of the             
$14 million dollars, $9 million was "eaten" up on contracts which              
the Department had no choice but to implement.                                 
                                                                               
In the last two years, the Department has not had a supplemental               
budget request.  The Governor submitted a conservative budget, the             
difference in the request from FY97 was $1.7 million dollars which             
was for negotiated contracts.  The proposed budget presumes that               
the Department could cut at least $4 million dollars out of basic              
operations.  He emphasized that would be a serious challenge for               
the Department.                                                                
                                                                               
The correctional population is rising.  The proposal for the                   
budget recommends eliminating the special assistant to the                     
Governor, reducing the travel and contractual budget and                       
eliminating funding for data processing.  There are thirteen pages             
of proposed cuts.                                                              
Representative Moses asked if services to municipalities had been              
collected.  Mr. Cole stated that the Department tries, although,               
there is not exist a formula for charge-backs.  The State has                  
responsibility for misdemeanors.  In order to solve the issue,                 
there needs to be an equitable formula which can be used for all               
municipalities.                                                                
                                                                               
In response to Representative Martin question, Mr. Cole advised                
that the jail population is increasing.  Since the 1980's, there               
has been a 300% increase in the number of persons incarcerated due             
to changes in the criminal code on the federal and state level.                
                                                                               
Representative J. Davies questioned the premium pay issue.  Mr.                
Cole explained that the Department is required to carry a certain              
percentage of vacancy.  The premium pay pays for a shift                       
differentials and also for the over-time costs.                                
                                                                               
A roll call vote was taken on the MOTION to adopt DOC-#1.                      
                                                                               
 IN FAVOR: Grussendorf, Moses, J. Davies                                       
 OPPOSED: Kelly, Kohring, Martin, Mulder, G. Davis, Foster,                    
Therriault                                                                     
                                                                               
Co-Chair Hanley was not present for the vote.                                  
                                                                               
The MOTION FAILED (3-7).                                                       
                                                                               
Representative J. Davies MOVED to adopt DOC-#2.  [Copy on file].               
Representative Mulder OBJECTED.                                                
                                                                               
Representative Kubina explained that the proposed replacement of               
$1.1 million general fund dollars with federal funds would be a                
disallowed transaction under federal grant rules.  He stressed                 
that the states' eligibility for the actual receipt of the federal             
Crime bill grant funds would be in jeopardy.                                   
                                                                               
Representative Mulder countered that the question would be the use             
of the federal funds and what they would be appropriated for.  He              
stated that it was clear in the federal statutes that the money                
must be used for new beds.  It is not the intent of the                        
Subcommittee to remove any beds or to use any State general funds.             
 The reduction of general funds is a separate issue.                           
                                                                               
(Tape Change HFC 97-82, Side 1).                                               
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Moses, J. Davies, Grussendorf                                       
 OPPOSED: Kohring, Martin, Mulder, G. Davis, Foster,                           
Therriault                                                                     
                                                                               
Representatives Kelly and Hanley were not present for the vote.                
                                                                               
The MOTION FAILED (3-6).                                                       
                                                                               
Representative J. Davies MOVED to adopt DOC-#3.  Copy on file.                 
Representative Mulder OBJECTED.                                                
                                                                               
Mr. Cole explained that Amendment #3 would address the proposed                
replacement of $1 thousand general fund dollars with the federal               
crime bill funds and would be a disallowed transaction under                   
federal grant rules and the states' eligibility for actual receipt             
of the federal crime bill grant funds would be in jeopardy.                    
                                                                               
Representative Mulder stated that the federal funds were to be                 
used for purchasing more soft beds.  The position made to the                  
Department of Justice is that the purchase of additional soft beds             
would eliminate some of the overcrowding in the existing                       
facilities, which is the intention for the funds.                              
                                                                               
Representative J. Davies requested further clarification of the                
issue.  Mr. Cole noted that the problems with DOC-#2 and DOC-#3 is             
the math used to address what the cost for existing beds will be.              
 New beds are a more complicated issue.  He questioned if                      
supplanting meant the replacement of funding that would have                   
otherwise been appropriated had the federal money not been                     
available or would it be restricted to funds appropriated, cut and             
replacement with other federal funds.  Mr. Cole stressed that all              
three of these items are at issue.                                             
                                                                               
Representative J. Davies suggested that the funds would be better              
used as capital funds to actually expand the physical facilities.              
 Representative Mulder reiterated that purchasing new soft beds                
would make better sense by encouraging the Department to use more              
soft beds which would expand the capacity.                                     
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Moses, J. Davies, Grussendorf                                       
 OPPOSED: Kohring, Martin, Mulder, G. Davis, Foster, Kelly,                    
Therriault                                                                     
                                                                               
Representative Hanley was not present for the vote.                            
                                                                               
The MOTION FAILED (3-7).                                                       
                                                                               
Representative J. Davies MOVED to adopt DOC-#4.  [Copy on file].               
Representative Mulder OBJECTED.                                                
                                                                               
Representative Kubina explained that the funds would reinstate the             
out-of-state contracts within the Administration and Operations                
BRU.  That section would provide classification support,                       
responsibility of prisoners assigned to out-of-state facilities,               
and general oversight of all out-of-state operations.  If this                 
program is within its own BRU, institutions would not be able to               
provide direct financial support for enhancement to the program.               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Moses, J. Davies, Grussendorf                                       
 OPPOSED: Martin, Mulder, G. Davis, Foster, Kelly, Kohring,                    
Therriault                                                                     
                                                                               
Representative Hanley was not present for the vote.                            
                                                                               
The MOTION FAILED (3-7).                                                       
                                                                               
Representative J. Davies WITHDREW DOC-#5.  [Copy on file].  There              
being NO OBJECTION, it was withdrawn.                                          
                                                                               
Representative J. Davies MOVED to adopt DOC-#6.  [Copy on file].               
Representative Mulder OBJECTED.                                                
                                                                               
Representative J. Davies stated that the amendment would delete                
one of the intent provisions which would transfer a pre-trial                  
misdemeanor from jails to CRC's.  He stated that was not                       
practical.  The pre-trail issue is problematic.                                
                                                                               
Mr. Cole emphasized that there exists a "business obligation" to               
the private sector to place as many misdemeanant pretrial persons              
in CRC within 12 hours of booking unless a determination has been              
made that the prisoner is a threat to public safety.  This is a                
public safety concern.                                                         
                                                                               
Representative Mulder recommended a change to DOC-#6.  He pointed              
out that currently there is no definition of nonviolent                        
misdemeanor.  The Legislature is trying to encourage the                       
Department to put as many people as possible into half way house               
beds.  He agreed that he was sensitive to domestic violence                    
situations and would be amenable to adding language to the end of              
the first section:                                                             
                                                                               
 "The Department should be sensitive  to the safety                            
of victims, before placing misdemeanant                                        
convicted of crimes involving domestic                                         
violence."                                                                     
                                                                               
Representative Mulder MOVED that language following removal of                 
"delete" and changing it to "amend".  Discussion followed                      
regarding striking the language "nonviolence" in part (b) of the               
amendment and adding the same sentence following portion (b).                  
There being NO OBJECTION, the above language was changed.                      
                                                                               
FRONT SECTION                                                                  
                                                                               
Co-Chair Hanley MOVED to adopt the Division of Insurance section               
to the Front #1-Governor's recommended amendment.  [Copy on file].             
 There being NO OBJECTION, it was adopted.                                     
                                                                               
Co-Chair Hanley MOVED to adopt the Alaska Science and Technology               
Foundation section to the Front #1.  There being NO OBJECTION, it              
was adopted.                                                                   
                                                                               
Co-Chair Hanley noted that the Department of Natural Resources                 
section would not be moved.  The $150 thousand dollars will be                 
added in the supplemental budget.                                              
                                                                               
Co-Chair Hanley MOVED to amend the Alaska Public Utilities                     
Commission section changing it to designated program receipts.                 
There being NO OBJECTION, it was adopted.                                      
                                                                               
Co-Chair Hanley MOVED to adopt the amended Section 12(c) which                 
will return it to standard language.  There being NO OBJECTION, it             
was adopted.                                                                   
                                                                               
Co-Chair Hanley MOVED to adopt the amended Section 13(a) which                 
will allow the utilization of the Department of Fish and Game                  
funds.  There being NO OBJECTION, it was adopted.                              
                                                                               
Co-Chair Hanley MOVED to adopt the amended Section 19 which would              
correct the funding source for occupational licensing.  There                  
being NO OBJECTION, it was adopted.                                            
                                                                               
Co-Chair Hanley MOVED to adopt Section 26(c), State Debt and other             
Obligations.  There being NO OBJECTION, it was adopted.                        
                                                                               
(Tape Change HFC 97-82, Side 2).                                               
                                                                               
Co-Chair Hanley noted that the amended Section #31 and Section #4              
would be HELD.                                                                 
                                                                               
Co-Chair Hanley MOVED to adopt Section 11, which would provide the             
deletion of the Exxon Valdez Oil Spill Trustee Council.  There                 
being NO OBJECTION, it was adopted.                                            
                                                                               
Co-Chair Hanley noted that Sections 16(b), 16(c) and 16(d) would               
not be deleted.                                                                
                                                                               
Co-Chair Hanley spoke to adoption of Front-#2 and it's components.             
 [Copy on file].  He stated that he would amend the amendment to               
add a deletion to Page 7, Line 12 (c): "Except as provided in                  
(d)," and to Page 7, Lines 15-17, delete (d).                                  
                                                                               
Co-Chair Hanley noted that Section 1 is the intent language                    
already outlined in the Executive Budget Act.  The second part of              
the amendment would increase AHFC dividend to general fund account             
for the recently released Insurance Fund.  The final part of the               
amendment would be the Governor's intent when addressing fiscal                
notes.  The Legislature can fund fiscal notes at Conference                    
Committee.                                                                     
                                                                               
Representative J. Davies MOVED to divide the question of Front-#2              
into Section A, change to Page 1, and Section B, addressing the                
remaining portion of the amendment.  There being NO OBJECTION, it              
was divided.                                                                   
                                                                               
Co-Chair Hanley MOVED to adopt Front-#2(B).  There being NO                    
OBJECTION, it was adopted.                                                     
                                                                               
Co-Chair Hanley MOVED to adopt Front-#2(A).  Representative J.                 
Davies OBJECTED.  Representative Grussendorf questioned how such a             
change would affect the long range fiscal plan.                                
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Moses, Mulder, G. Davis, Foster, Kelly, Kohring,                    
Martin, Therriault, Hanley                                                     
 OPPOSED: J. Davies, Grussendorf                                               
                                                                               
The MOTION PASSED (9-2).                                                       
                                                                               
Co-Chair Hanley MOVED to adopt Front-#3.  [Copy on file].  He                  
explained that the possibility of federal match rate change for                
the State's payment of Medicaid funds.  The change could result in             
a reduced State payment from 50% to 38% rate.  The amendment                   
assumes this will pass this fiscal year, with a net zero intent.               
Representative J. Davies noted concern with the contingency                    
decision associated with the proposed change.  Co-Chair Hanley                 
stated that the Legislative Budget and Audit Committee (LBA) could             
authorize the increased federal funds.  There being NO OBJECTION,              
the amendment was adopted.                                                     
                                                                               
Representative Grussendorf MOVED to adopt the new Front-#4.  [Copy             
on file].  Representative Martin pointed out that the $9 million               
dollars from Wishbone Hill was separate funding and was not                    
included in the Railroad.  Co-Chair Hanley noted that the                      
appropriation had been to the Alaska Railroad and that it could                
not be spent without a contract dealing with the Wishbone Mine.                
Representative Martin commented that he would accept the changed               
                                                                               
Representative G. Davis OBJECTED to Front-#4.  He stated that he               
was opposed because it would put more constraints on the Railroad              
and would not provide a true assessment of the true value.  Co-                
Chair Hanley pointed out that the amendment would not have any                 
effect on the legislation currently in the Legislative Body.                   
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: Foster, Kelly, Kohring, Martin, Hanley                              
 OPPOSED: Mulder, J. Davies, G. Davis, Grussendorf, Moses                      
                                                                               
Representative Therriault was not present for the vote.                        
                                                                               
The MOTION PASSED (5-5).                                                       
                                                                               
Representative Grussendorf MOVED to adopt Front-#5.  [Copy on                  
file].  He stated that the amendment would add $125 thousand                   
dollars to the Alaska Marine Highway System fund to restore                    
funding for the operation of the bars on the ferries.                          
                                                                               
VIRGINIA STONKUS, FISCAL ANALYST, LEGISLATIVE FINANCE DIVISION,                
corrected that the new number for the Marine Highway stabilization             
fund is $28.383 million dollars.  Co-Chair Hanley OBJECTED.                    
                                                                               
A roll call vote was taken on the MOTION.                                      
                                                                               
 IN FAVOR: J. Davies, G. Davis, Grussendorf, Moses                             
 OPPOSED: Foster, Kelly, Kohring, Martin, Mulder,                              
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (4-7).                                                       
                                                                               
(Tape Change HFC 97-83, Side 1).                                               
                                                                               
STATEWIDE                                                                      
                                                                               
Co-Chair Hanley MOVED to adopt State-#1.  [Copy on file].  He                  
explained that items in the proposed amendment were capital budget             
projects which were not included in the Mental Health Trust                    
Authority indicating a true capital budget request.  There being               
NO OBJECTION, it was adopted.                                                  
                                                                               
As a technical amendment, Co-Chair Hanley MOVED that the capital               
projects be added as part of the title for the capital bill.                   
There being NO OBJECTION, it was adopted.                                      
                                                                               
Co-Chair Hanley MOVED to adopt State-#4.  [Copy on file].  Co-                 
Chair Hanley explained that this amendment was needed to complete              
transfers associated with the Executive Order '98 which transfers              
Weights and Measures from Commerce and Commercial Vehicles                     
Inspections from Public Safety to the Department of Transportation             
and Public Facilities.  There being NO OBJECTION, it was adopted.              
                                                                               
HB 75 and HB 76 were HELD in Committee for further consideration.              
ADJOURNMENT                                                                    
                                                                               
The meeting adjourned at 6:00 P.M.                                             
                                                                               
                                                                               
                                             H.F.C.    3/26/97                 
P.M.                                                                           
                                                                               

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