Legislature(2001 - 2002)

02/15/2001 01:58 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 15, 2001                                                                                          
                          1:58 PM                                                                                               
                                                                                                                                
TAPE HFC 01 - 29, Side A                                                                                                        
TAPE HFC 01 - 29, Side B                                                                                                        
TAPE HFC 01 - 30, Side A                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Mulder  called the  House Finance Committee  meeting                                                                   
to order at 1:58 PM.                                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eldon Mulder, Co-Chair                                                                                           
Representative Bill Williams, Co-Chair                                                                                          
Representative Con Bunde, Vice-Chair                                                                                            
Representative Eric Croft                                                                                                       
Representative John Davies                                                                                                      
Representative Richard Foster                                                                                                   
Representative John Harris                                                                                                      
Representative Bill Hudson                                                                                                      
Representative Ken Lancaster                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Carl Moses                                                                                                       
Representative Jim Whitaker                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Annalee  McConnell,   Director,  Office  of   Management  and                                                                   
Budget, Office  of the Governor;  Bill Britt,  State Pipeline                                                                   
Coordinator,  Department of  Natural  Resources; Ken  Taylor,                                                                   
Director, Division of Habitat  and Restoration, Department of                                                                   
Fish   and   Game;   Pat   Galvin,   Director,   Governmental                                                                   
Coordination,  Office  of  the  Governor;  Remond  Henderson,                                                                   
Director, Division of Administrative  Services, Department of                                                                   
Labor  and   Workforce  Development;   Kurt  Parkan,   Deputy                                                                   
Commissioner,   Department  of   Transportation  and   Public                                                                   
Facilities; Sharon Barton, Director  of Personnel, Department                                                                   
of  Administration;   Mike  Maher,   Director,  Division   of                                                                   
Administrative   Services,  Department   of  Revenue;   Janet                                                                   
Kolaski,  Director,  Division  of Elections,  Office  of  the                                                                   
Lieutenant   Governor;  Laurie   Alfred,  Business   Manager,                                                                   
Division  of Elections,  Office of  the Lieutenant  Governor;                                                                   
Larry Persily,  Deputy Commissioner,  Department of  Revenue;                                                                   
Kurt   Fredrickson,   Deputy  Commissioner,   Department   of                                                                   
Environmental Conservation;  Dan Spencer, Director,  Division                                                                   
of  Administrative  Services, Department  of  Administration;                                                                   
Richard McMahon, Chief, Lands  Records, Department of Natural                                                                   
Resources; Ken Freeman, Special  Assistance, Business and Gas                                                                   
line  Development,   Office  of   the  Governor;   Jan  Levy,                                                                   
Supervising  Attorney,  Juneau Oil  Gas  and Mining  Section,                                                                   
Department of Law.                                                                                                              
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dan Dickinson, Division of Tax,  Department of Revenue; Kelly                                                                   
Nicolello,  Assistant State  Fire Marshal,  Division of  Fire                                                                   
Prevention,   Department   of  Natural   Resources;   Richard                                                                   
McMahon,   Chief,  Lands  Records,   Department  of   Natural                                                                   
Resources;  Bill  Van  Dyke,   Lease  Administration/Royalty,                                                                   
Division  of Oil and  Gas, Department  of Natural  Resources;                                                                   
Ken Freeman,  Office of the  Governor; Cam Toohey,  Executive                                                                   
Director, Arctic Power.                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 117    "An    Act    making   supplemental    and    other                                                                   
          appropriations; and providing for an effective                                                                        
          date."                                                                                                                
                                                                                                                                
          CSHB 117 (FIN) was REPORTED out of Committee with                                                                     
          a "do pass" recommendation.                                                                                           
HOUSE BILL NO. 117                                                                                                            
                                                                                                                                
     "An Act making supplemental and other appropriations;                                                                      
     and providing for an effective date."                                                                                      
                                                                                                                                
Co-Chair Mulder  provided members  with a proposed  committee                                                                   
substitute, work  draft #22-GH108\C,  dated 2/15/01  (copy on                                                                   
file). He  observed that items  that were not  time sensitive                                                                   
were  deleted from  the  Governor's submission.  He  observed                                                                   
that  the most  difficult  item to  assess  pertained to  the                                                                   
natural gas  pipeline. He stressed  that an attempt  was made                                                                   
to  identify  portions  of  the request  that  would  have  a                                                                   
positive impact on  the project and were time  sensitive. The                                                                   
following  portions of  the request were  identified  as time                                                                   
sensitive:                                                                                                                      
                                                                                                                                
 Sec.  DEPARTMENT OF  NATURAL RESOURCES.  The sum of  213,900                                                                   
 is  appropriated from the general fund to  the Department of                                                                   
 Natural  Resources, Division  of Oil &  Gas for the  cost of                                                                   
  studies relative to gas royalties and Reservoir Studies.                                                                      
                                                                                                                                
 Sec.  DEPARTMENT OF LAW. The sum of 203.700  is appropriated                                                                   
 from  the general fund  to the Department Law  for retaining                                                                   
 legal experts to advise on gas pipeline issues.                                                                                
                                                                                                                                
 Sec.   DEPARTMENT  OF  REVENUE.   The  sum  of   $75,000  is                                                                   
 appropriated  from  the general  fund to  the Department  of                                                                   
 Revenue  to contract for  an analysis of the  state's fiscal                                                                   
 regime for natural gas development.                                                                                            
                                                                                                                                
ANNALEE  MCCONNELL,   DIRECTOR,  OFFICE  OF   MANAGEMENT  AND                                                                   
BUDGET, OFFICE  OF THE GOVERNOR  provided information  on the                                                                   
natural gas pipeline. She observed  that agencies have worked                                                                   
since the fall  to determine what activities  the state could                                                                   
undertake to  advance the prospects for  commercialization of                                                                   
North Slope  gas. She  noted that a  capital project  for the                                                                   
gas line  was included  in the  Governor's December  15, 2000                                                                   
submittal.   The   Governor   anticipates   that   additional                                                                   
amendments would  be submitted  in addition to  this request.                                                                   
She emphasized  that early advancement  of the  project would                                                                   
increase state revenues by $200 - $400 million dollars.                                                                         
                                                                                                                                
BILL  BRITT,   STATE  PIPELINE  COORDINATOR,   DEPARTMENT  OF                                                                   
NATURAL RESOURCES  provided information  on the  supplemental                                                                   
request. He maintained  that the FY 2001  Supplemental Budget                                                                   
Request  would help  advance development  of Alaskan  natural                                                                   
gas consistent with the following principles:                                                                                   
                                                                                                                                
- Alaskan access to the gas;                                                                                                    
- Alaskans working on the project; and                                                                                          
-  Alaskan returns for our resources.                                                                                           
                                                                                                                                
Mr. Britt highlighted actions contained in the proposal:                                                                        
                                                                                                                                
      Establishing a coordinated state permitting process;                                                                      
     Working with project proponents to advocate Alaskan                                                                        
     interests; and                                                                                                             
     Informing Alaskans of the issues involved in developing                                                                    
     Alaskan natural gas, and soliciting their views on                                                                         
     those issues.                                                                                                              
                                                                                                                                
Mr. Britt pointed out that these  actions are not specific to                                                                   
a route. Co-Chair  Mulder stated a preference  for a southern                                                                   
route.  Mr. Britt noted  that the  Administration shares  the                                                                   
preference for a southern route.                                                                                                
                                                                                                                                
Representative John  Davies questioned how much  of the route                                                                   
would focus on  South Eastern Alaska from Delta  Junction. He                                                                   
questioned how much is route specific.                                                                                          
                                                                                                                                
Mr.  Britt stated  that the  requests vary.  The request  for                                                                   
fire prevention  in the  Department of  Public Safety  is for                                                                   
training  of deputy  fire marshals  in gas  pipeline and  gas                                                                   
facility fire  prevention codes. This would be  applicable to                                                                   
any  route. Requests  from Department  of Fish  and Game  and                                                                   
Department  of Environmental Conservation  would be  targeted                                                                   
to the highway route.                                                                                                           
                                                                                                                                
Mr. Britt  emphasized that  the intent  is to provide  prompt                                                                   
authorization in order to increase  Alaska's financial return                                                                   
from the project.                                                                                                               
                                                                                                                                
Mr.  Britt stressed  that  the efforts  in  this request  are                                                                   
needed now  if the department is  to be ready to  make policy                                                                   
decisions  and efficiently process  the permit  applications.                                                                   
They expect  to receive applications  before the end  of this                                                                   
calendar year.                                                                                                                  
                                                                                                                                
Regarding the  permitting applications, the  department feels                                                                   
that if they are ready they can  positively affect the length                                                                   
of   the   permitting  process   and   construction.   "Time,                                                                   
genuinely,  can  be the  difference  between  an  opportunity                                                                   
ceased  and an opportunity  missed here."  By minimizing  the                                                                   
potential for delays they maximize  the potential of success.                                                                   
The ultimate beneficiary is the economy of Alaska.                                                                              
                                                                                                                                
Mr. Britt observed that British  Petroleum Inc., Phillips and                                                                   
Exxon have  an office with  50 staff  in place now,  and have                                                                   
indicated that  they will grow that  office to 90 by  the end                                                                   
of the  year. They have also  indicated that they  will spend                                                                   
$75 million  dollars in the next  9 months preparing  for the                                                                   
gas pipeline  project. The work  in the supplemental  request                                                                   
is necessary  to allow Alaska  to advise project  proponents,                                                                   
to keep the  state from impeding their progress,  and to keep                                                                   
Alaskan  priorities at  the forefront  of the discussion,  as                                                                   
the proponents move  forward in a very aggressive  manner. He                                                                   
noted   that   there   are  other   interested   parties   in                                                                   
discussions.                                                                                                                    
                                                                                                                                
Mr.  Britt reiterated  that  the  Department  of Revenue  has                                                                   
estimated that  the state will  receive between  $200 million                                                                   
and $400  million dollars in the  first year of  gas pipeline                                                                   
operation.  It may  be appropriate  to  measure general  fund                                                                   
investments  needed to  accelerate  gas pipeline  development                                                                   
against the return.                                                                                                             
                                                                                                                                
KURT   FREDRICKSON,   DEPUTY  COMMISSIONER,   DEPARTMENT   OF                                                                   
ENVIRONMENTAL  CONSERVATION   provided  information   on  the                                                                   
proposal for a  natural gas pipeline. The project  will touch                                                                   
the majority of their program  areas. There are air and water                                                                   
quality, solid waste disposal,  sewage handling and disposal,                                                                   
drinking water and food safety  issues. He emphasized that an                                                                   
aggressive  program  would  resolve  many  of  the  potential                                                                   
issues up  front. The  proposal would  authorize the  hire of                                                                   
six positions to  work with air, water, spill  prevention and                                                                   
response,  and environmental  health. An  air engineer  would                                                                   
also  be hired  to  work  on pre-monitoring  of  ambient  air                                                                   
quality. There is  a large potential emissions  source in the                                                                   
North Slope and Fairbanks.                                                                                                      
                                                                                                                                
Mr. Fredrickson  noted  that the department  would create  an                                                                   
office  to focus on  gas line  process in  areas of  specific                                                                   
concern. The department  would also review data  collected by                                                                   
various  entities   that  would  be  useful.   Companies  are                                                                   
enquiring regarding environmental issues.                                                                                       
                                                                                                                                
Representative   Croft   referred   to  statements   by   the                                                                   
department referring to the project  sponsor: Pre-application                                                                   
work  with the  project  sponsor to  update  and perfect  DEC                                                                   
permit    applications'    and    supporting    environmental                                                                   
documentation  will reduce  future  delays  in approving  DEC                                                                   
permit  applications. He  asked Mr.  Fredrickson to  identify                                                                   
the project sponsor. Mr. Fredrickson  acknowledged that there                                                                   
is  not  an  absolute  project   sponsor  at  this  time.  He                                                                   
anticipated   that  the  producers   would  be  the   project                                                                   
sponsors.                                                                                                                       
                                                                                                                                
Co-Chair  Williams acknowledged  the  importance  of the  gas                                                                   
pipeline. He observed  that oil companies have  not indicated                                                                   
that they would build the pipeline  earlier. He stressed that                                                                   
the budget is tight and that "nothing  out there is concrete,                                                                   
but we  are going  to pour concrete."  He suggested  that the                                                                   
funding be made available in the next year.                                                                                     
                                                                                                                                
Mr. Britt  responded that  the window  of opportunity  may be                                                                   
narrow. He observed that demand  has not kept up with supply.                                                                   
Supply will increase and Alaska  can be part of the increase.                                                                   
He stressed that  the project could be jeopardized  by a lack                                                                   
of funding.                                                                                                                     
                                                                                                                                
Co-Chair  Williams  expressed  further  concerns.  Mr.  Britt                                                                   
argued  that the  indications are  good that  a gas  pipeline                                                                   
would be  built. The choice is  to wait until  an application                                                                   
is submitted and risk delay.                                                                                                    
                                                                                                                                
Ms. McConnell  clarified that  section 8  of HB 117  contains                                                                   
the Governor's submittal relating to gas pipeline projects.                                                                     
                                                                                                                                
Co-Chair   Mulder    observed   that   the    Department   of                                                                   
Environmental  Conservation  is  requesting  $141.9  thousand                                                                   
dollars to  hire a Department  of Environmental  Conservation                                                                   
liaison  to work  with  the  State Pipeline  Coordinator  and                                                                   
other state agencies  to establish an operating  gas pipeline                                                                   
office.  They  would  also hire  four  environmental  program                                                                   
specialists  (air, water,  spill prevention  & response,  and                                                                   
environmental health)  to work with the project  sponsor, and                                                                   
other  state and  federal  agencies  on issues  within  their                                                                   
program jurisdiction  and expertise. They would  also hire an                                                                   
air  quality chemist  to  work with  the  project sponsor  on                                                                   
summer air quality monitoring objectives.                                                                                     
                                                                                                                                
KEN TAYLOR,  DIRECTOR, DIVISION  OF HABITAT AND  RESTORATION,                                                                   
DEPARTMENT OF  FISH AND GAME explained that  the department's                                                                   
responsibility   is  to   assure  that   fish  and   wildlife                                                                   
populations  are  protected during  the  construction  phase.                                                                   
They    are   requesting    two    positions:   a    Pipeline                                                                   
Liaison/Surveillance   Supervisor  and  a   Design/Permitting                                                                   
Coordinator.  He  noted  that activities  will  be  postponed                                                                   
until FY02  where possible. Once  an application  is received                                                                   
the applicant  would reimburse the department.  The positions                                                                   
would  begin   to  review   and  analyze  records,   identify                                                                   
potential  data gaps, select  and hire  staff for the  summer                                                                   
field season and work with other  agency liaisons to create a                                                                   
streamlined gas pipeline office.                                                                                                
                                                                                                                                
Vice-Chair  Bunde  asked  for   details  regarding  equipment                                                                   
purchases.  Mr. Taylor  observed  that the  department  would                                                                   
need to buy  some field equipment for staff  starting in July                                                                   
2001. There would be two field camps.                                                                                           
                                                                                                                                
Co-Chair  Mulder  questioned   what  would  be  lost  if  the                                                                   
department's  request  was not  included  in  the fast  track                                                                   
legislation. Mr.  Taylor explained that the  department would                                                                   
not have  time to hire the  appropriate staff for  the summer                                                                   
season if they do not get started.  There are three critical;                                                                   
field  seasons: summer,  winter and  spring. Co-Chair  Mulder                                                                   
questioned how areas could be  evaluated in the absence of an                                                                   
application.   Mr.  Taylor   emphasized  that   any  of   the                                                                   
alternatives would  use a significant portion  of the current                                                                   
pipeline  right-of-way. The  oil pipeline  utilizes a  heated                                                                   
pipe.  The gas  pipeline  would be  a cool  pipe  and may  be                                                                   
buried in  places. The gas pipeline  may be within  the right                                                                   
away but would not be adjacent. The right-of-way varies.                                                                        
                                                                                                                                
Mr. Britt noted that there are  engineering issues related to                                                                   
safety.  The State  Pipeline Coordinator's  office does  land                                                                   
management and engineering due  diligence associated with the                                                                   
projects.  Engineers have  a variety  of design  alternatives                                                                   
for stream crossings. He explained  that engineers would base                                                                   
their work on imperatives and environmental data.                                                                               
                                                                                                                                
Co-Chair Mulder  questioned how they would analyze  the route                                                                   
before an application is submitted.  Mr. Britt responded that                                                                   
the Department  of  Fish and Game  is not  proposing to  send                                                                   
large teams out to sample. The  producers are proposing to do                                                                   
field work.  Funding would allow  the state to work  with the                                                                   
producers  to assure  that  the data  is  sensitive to  state                                                                   
regulatory and statutory requirements.                                                                                          
                                                                                                                                
Vice-Chair  Bunde  observed that  the  corridor  is 10  miles                                                                   
wide. Mr. Britt  noted that federal and state  route specific                                                                   
right-a-ways have  been granted  and are in place.  Decisions                                                                   
will be made to see if the value  of the current right-of-way                                                                   
is sufficient  for its use.  Absence geological  or technical                                                                   
change  the  department   feels  that  they   can  make  good                                                                   
estimates as to where the pipeline is likely to go.                                                                             
                                                                                                                                
Ms.  McConnell interjected  that the  fieldwork can  identify                                                                   
possible  problems   in  order  to  avoid  them.   Mr.  Britt                                                                   
interjected  that the General  Accounting Office  recommended                                                                   
that as much  specific information be collected  as possible.                                                                   
The General Accounting  Office found that one  of the reasons                                                                   
for cost overruns on the Trans-Alaska  Pipeline System (TAPS)                                                                   
was a lack of data during the  design phase. He stressed that                                                                   
data will help things move faster and cost less.                                                                                
                                                                                                                                
PAT GALVIN,  DIRECTOR, DIVISION OF GOVERNMENTAL  COORDINATION                                                                   
(DGC), OFFICE  OF THE  GOVERNOR stated  that his division  is                                                                   
responsible   for  implementation   of  the  Alaska   Coastal                                                                   
Management  Program  (ACMP).   He  observed  that  DGC  would                                                                   
conduct a  coordinated ACMP  consistency review.  He stressed                                                                   
that  answering questions  before  the project  begins  would                                                                   
result  in  substantial  minimization of  delays  during  the                                                                   
project.  The State  Pipeline  Coordinator's  Office will  do                                                                   
most  of  the  coordination.  The  Division  of  Governmental                                                                   
Coordination would  hire a DGC liaison position,  which would                                                                   
be dedicated  to the start  up of the pipeline,  coordination                                                                   
of pre-application  assistance, and  the coordination  of the                                                                   
state's review. Cost and time  associated with the permitting                                                                   
process would be  a major component. He stressed  the need to                                                                   
have staff available to help with  the decisions. A number of                                                                   
agencies have  received invitations  from producer  groups to                                                                   
participate in  discussions regarding permitting,  operations                                                                   
and locations. He  stressed the need for personnel  to engage                                                                   
in the discussions.                                                                                                             
                                                                                                                                
Co-Chair Mulder  questioned why  the current staff  could not                                                                   
handle  the work.  Mr. Galvin  responded that  the agency  is                                                                   
currently working  at full capacity.  He stressed  that other                                                                   
projects  related to  on-going projects  would lose  out. Ms.                                                                   
McConnell  added that it  would be  difficult to tell  others                                                                   
that their projects could not  go forward because of pipeline                                                                   
activity.  Co-Chair Mulder stressed  that it  is a  matter of                                                                   
hierarchy and prioritization.                                                                                                   
                                                                                                                                
In response to  a comment by Representative  John Davies, Mr.                                                                   
Galvin  stated that  one of  the concerns  with the  Northern                                                                   
route  would  be  the impact  of  permitting  and  the  large                                                                   
hurdles that would have to be overcome.                                                                                         
                                                                                                                                
REMOND  HENDERSON,   DIRECTOR,  DIVISION  OF   ADMINISTRATIVE                                                                   
SERVICES,  DEPARTMENT  OF  LABOR  AND  WORKFORCE  DEVELOPMENT                                                                   
observed  that the  department's  request  is $26.9  thousand                                                                   
dollars.  The department's  mandate is  to assure that  there                                                                   
are qualified Alaskan workers.                                                                                                  
                                                                                                                                
(TAPE CHANGE, HFC 01 - 29, SIDE 2)                                                                                            
                                                                                                                                
Mr.  Henderson  added  that  the   Department  of  Labor  and                                                                   
Workforce Development  would conduct occupational  supply and                                                                   
demand  analysis to  identify  potential  workforce gaps.  In                                                                   
addition,   the  department  would   coordinate  efforts   to                                                                   
maximize  the employment  of Alaska residents  and to  ensure                                                                   
worker safety.                                                                                                                  
                                                                                                                              
Vice-Chair   Bunde  questioned   the   rush.  Mr.   Henderson                                                                   
explained  that it  takes time  to  correspond with  industry                                                                   
experts and  gather and  analyze data.  He stressed  that the                                                                   
project could be  delayed another year if the  process is not                                                                   
begun  in April.  An annual  federal occupational  employment                                                                   
survey would be augmented. The survey begins in October.                                                                        
                                                                                                                                
Ms. McConnell added  that a major issue in  providing Alaskan                                                                   
jobs is training.  Jobs are not necessarily ones  that can be                                                                   
trained in a short time. The department  needs to assure that                                                                   
the  training  is available  in  Alaska.  The  Administration                                                                   
anticipates  that   there  would  be  significant   workforce                                                                   
shortages.  Vice-Chair   Bunde  acknowledged  the   need  for                                                                   
qualified employees.                                                                                                            
                                                                                                                                
Representative Hudson  asked if the positions  are needed for                                                                   
the  balance of  FY01  and for  the full  year  of FY02.  Ms.                                                                   
McConnell  agreed  and  added  that the  positions  would  be                                                                   
located  in the capital  appropriation  bill to reflect  that                                                                   
they will not be permanently needed.                                                                                            
                                                                                                                                
KELLY NICOLELLO,  ASSISTANT STATE  FIRE MARSHAL,  DIVISION OF                                                                   
FIRE  PREVENTION, DEPARTMENT  OF NATURAL  RESOURCES spoke  in                                                                   
support  of  the  gas  pipeline   supplemental  request.  The                                                                   
request   would  allow   personnel   to  attend   specialized                                                                   
engineering training regarding  the practices and development                                                                   
criteria of  natural gas  pipeline production,  distribution,                                                                   
compression  and refrigeration  facilities. This would  allow                                                                   
the  Division  to respond  to  the applicant's  requests  for                                                                   
building construction  permits regarding  the pipeline  on an                                                                   
equal  footing,  with  greater  speed  and  without  a  large                                                                   
learning curve.                                                                                                                 
                                                                                                                                
Mr.  Nicolello  observed that  in  the process  of  providing                                                                   
building permit services for an  applicant it is important to                                                                   
develop product  and process knowledge  so hazards,  past pit                                                                   
falls and advancing  technology can be  ascertained, avoided,                                                                   
implemented and  understood. The state has experience  in oil                                                                   
pipeline  and  other  hazardous  processes  but  natural  gas                                                                   
pipelines  and related  facilities  are a  specialty area  in                                                                   
which  there  is limited  experience.  He  noted that  it  is                                                                   
important to be  able to converse with  engineers, designers,                                                                   
operators and process control  personnel when approving their                                                                   
concepts  and designs  for  construction.  Training can  help                                                                   
eliminate  a  learning  curve   at  the  expense  of  project                                                                   
approvals.                                                                                                                      
                                                                                                                                
Mr. Nicolello  pointed out that  the division is  being asked                                                                   
informally,  to   comment  on  conceptual   design  elements.                                                                   
Without approval  of the request  the division would be  at a                                                                   
disadvantage in  pre-construction meetings and  plan reviews,                                                                   
once there  is an applicant,  until they can  become educated                                                                   
on  the   subject  of   natural  gas   pipeline  design   and                                                                   
engineering principals.                                                                                                         
                                                                                                                                
KURT    PARKAN,    DEPUTY   COMMISSIONER,    DEPARTMENT    OF                                                                   
TRANSPORTATION  AND  PUBLIC  FACILITIES  explained  that  the                                                                   
department's  request  would  allow  a  Liaison/Engineer  III                                                                   
position to  be hired.  If the route  goes along  the highway                                                                   
the Department of Transportation  and Public Facilities would                                                                   
need to be involved in permitting.  The department would also                                                                   
be involved in load issues relating to bridges.                                                                                 
                                                                                                                                
Representative Croft  stated that the requests  presupposed a                                                                   
specific route.  He questioned how  the route was  chosen. He                                                                   
maintained  that the  "cart was  before the  horse". He  felt                                                                   
that  the route  was chosen  prematurely.  Mr. Parkan  stated                                                                   
that if the route goes south that  the highway would still be                                                                   
involved.  Portions  of the  highway  system  will be  needed                                                                   
regardless of which route is chosen.                                                                                            
                                                                                                                                
Ms.  McConnell   recognized  that  there  are   still  issues                                                                   
regarding  the full  location  of the  route. She  maintained                                                                   
that most  of the  requests will  be necessary regardless  of                                                                   
the route. Applications  will need to be  reviewed regardless                                                                   
of the route.                                                                                                                   
                                                                                                                                
Representative Croft noted that  the Governor's backup states                                                                   
that:   "The   Knowles-Ulmer    administration   is   working                                                                   
aggressively  to   develop  Alaska's  enormous   North  Slope                                                                   
natural gas resources by advancing  construction of an Alaska                                                                   
Highway  natural  gas  pipeline.  This  pipeline  project  is                                                                   
designed to achieve the three  principles most Alaskans agree                                                                   
on  when  it comes  to  commercializing  Alaska's  gas."  Ms.                                                                   
McConnell  responded  that  the Governor  has  indicated  his                                                                   
preference, but emphasized that  many of the items need to go                                                                   
forward.                                                                                                                        
                                                                                                                                
Co-Chair   Mulder  reviewed   changes   to  the   legislation                                                                   
contained in the proposed committee  substitute. The original                                                                   
section  1,  Administration,  Pioneer Homes,  195.0  was  not                                                                   
included. A new section 1 was added:                                                                                            
                                                                                                                                
     The sum of  $1,500,000 is appropriated from  the general                                                                   
     fund  to  the  Department   of  Community  and  Economic                                                                   
     Development  for payment as  a grant under  AS 37.05.316                                                                   
     to  Arctic  Power  for education  efforts  to  open  the                                                                   
     coastal  plain of  the Arctic  National Wildlife  refuge                                                                   
     for oil and gas exploration and development.                                                                               
                                                                                                                                
Sections 2 and  3(a) remain the same. Sections  3(b) and 3(c)                                                                   
were added to  reappropriate funds to the Department  of Fish                                                                   
and  Game for  the expenses  of Board  of Fisheries  meetings                                                                   
regarding halibut subsistence.                                                                                                  
                                                                                                                                
Section  4(a)   funding  to  the  Office  of   the  Governor,                                                                   
Elections, for costs  incurred to comply with  the US Supreme                                                                   
Court decision  on closed statewide primary election  held in                                                                   
August  2000,  was  reduced  from   252.2  to  $100  thousand                                                                   
dollars. Co-Chair  Mulder noted  that the  issue is  not dead                                                                   
and would be revisited in the  main supplemental. This is the                                                                   
amount deemed necessary to carry  operations until April 1st.                                                                   
                                                                                                                                
Sections 4(b) and 5 remain the same.                                                                                            
                                                                                                                                
Section  6 Department  of Law was  deleted: Continuing  costs                                                                   
for prosecution of  claims against Bank of America  and other                                                                   
affiliated  banks,   and  for   litigation  related   to  the                                                                   
allocation  of   public  safety  resources   $240.0  thousand                                                                   
dollars.                                                                                                                        
                                                                                                                                
A  new   section  6  was  added:   The  sum  of   $10,000  is                                                                   
appropriated from  the general fund to the  Department of Law                                                                   
for the costs  associated with litigation regarding  the 1997                                                                   
tort reform legislation for the  fiscal years ending June 30,                                                                   
2001, and June 30, 2002.                                                                                                        
                                                                                                                                
Representative Croft  questioned why funding for  the Bank of                                                                   
America  litigation was  removed.  Co-Chair Mulder  responded                                                                   
that they  wanted additional information  on the  request and                                                                   
that it  was not deemed  to be  time sensitive. He  clarified                                                                   
that  items  were  deleted  based  on  their  time  sensitive                                                                   
nature.                                                                                                                         
                                                                                                                                
There  is   a  new  section  7:   The  sum  of   $608,396  is                                                                   
appropriated  from  the  general   fund  to  the  Legislative                                                                   
Council for  the Redistricting  Board for operations  for the                                                                   
fiscal year ending June 30, 2001.                                                                                               
                                                                                                                                
The original section 7 was included as sections 8:                                                                              
                                                                                                                                
     The  sum of $500,000  is appropriated  from the  general                                                                   
     fund  to  the  Department   of  Military  and  Veterans'                                                                   
     Affairs, office  of the commissioner, for  a grant under                                                                   
     AS  37.05.316  to  2001 Special  Olympics  World  Winter                                                                   
     Games, Alaska for operating  costs of those games during                                                                   
     the fiscal year ending June 30, 2001.                                                                                      
                                                                                                                                
The old section 8 was deleted:                                                                                                  
                                                                                                                                
     The  sum of $600,000  is appropriated  from the  general                                                                   
     fund  to  the Department  of  Natural  Resources,  state                                                                   
     pipeline   coordinator's   office,  for   gas   pipeline                                                                   
     development and related activities.                                                                                        
                                                                                                                                
The  appropriation  in  section   9  for  $1,276,000  to  the                                                                   
Department  of Revenue,  Tax Division,  for a tax  assessment                                                                   
challenge  was divided  between general  funds and  statutory                                                                   
designated program  receipts. Co-Chair  Mulder noted  that 90                                                                   
percent of  the additional value  of the assessment  would go                                                                   
to  the  North   Slope  Borough.  He  stressed   that  it  is                                                                   
appropriate  that   the  Borough   share  the  cost   of  the                                                                   
assessment.                                                                                                                     
                                                                                                                                
Sections  10(a),   10(b),  11(1),  11(2),  11(3)   and  11(4)                                                                   
remained the same.                                                                                                              
                                                                                                                                
Section 11(5) was not included:                                                                                                 
                                                                                                                                
     11(5)     Transportation Capital    Copper River Highway                                                                   
     work done under the Consent Agreement    400.0                                                                             
                                                                                                                                
DAN SPENCER,  DIRECTOR, DIVISION OF ADMINISTRATIVE  SERVICES,                                                                   
DEPARTMENT  OF ADMINISTRATION  discussed  the  impact of  the                                                                   
failure   to    fund   section    1.   He   explained    that                                                                   
reclassification   takes  place   on  March   1,  2001.   The                                                                   
reclassification  is an  attempt  to address  recruiting  and                                                                   
retention  of  employees.  He acknowledged  that  the  impact                                                                   
would not  be critical if  the funding  is in the  slow track                                                                   
supplemental.  Positions will  have to  remain vacant.  There                                                                   
are 5  permanent full  time positions,  11 on call  positions                                                                   
and 2 non-permanent positions that are vacant.                                                                                  
                                                                                                                                
Co-Chair Mulder  questioned if  the legislature directed  the                                                                   
department  to  proceed with  reclassification.  Mr.  Spencer                                                                   
noted   that    the   legislature   did   not    direct   the                                                                   
reclassification. He stressed  that there is an obligation to                                                                   
provide nursing positions. Vacant  skilled positions create a                                                                   
ripple affect  through the pioneer homes. He  emphasized that                                                                   
the  state  must   ensure  that  qualified  workers   can  be                                                                   
attracted.  He observed  that beds cannot  be filled  without                                                                   
sufficient nursing positions.                                                                                                   
                                                                                                                                
In  response to  a  question  by Representative  Hudson,  Mr.                                                                   
Spencer noted  that the  reclassification would be  affective                                                                   
March 1,  2001. The reclassification  would increase  skilled                                                                   
practitioners two grade levels, approximately 15 percent.                                                                       
                                                                                                                                
Representative  Croft concluded  that vacant positions  would                                                                   
be held open. Mr. Spencer noted  that positions would be held                                                                   
open or funding would have to be taken from another area.                                                                       
                                                                                                                                
Co-Chair Mulder  questioned the cost of  the reclassification                                                                   
study.                                                                                                                          
                                                                                                                                
SHARON   BARTON,  DIRECTOR   OF   PERSONNEL,  DEPARTMENT   OF                                                                   
ADMINISTRATION  clarified  that the  study  was  done by  the                                                                   
department at  no additional cost.  The study found  that the                                                                   
average  private comparable  position received  approximately                                                                   
$450  dollars more  a month.  Experienced  nurses were  being                                                                   
paid $800  dollars a month more  than nurses employed  by the                                                                   
state  of Alaska.  Many of the  employers in  the study  were                                                                   
about to increase wages.                                                                                                        
                                                                                                                                
Representative  Hudson expressed  concern for the  protection                                                                   
of life safety issues. Mr. Spencer  stressed that risk in the                                                                   
homes would not  be increased. He noted that  covering vacant                                                                   
positions  strains the  staff.  Vacancy would  not cover  the                                                                   
entire cost.                                                                                                                    
                                                                                                                                
Representative  Hudson  observed  that  failure to  fund  the                                                                   
request  would result  in fewer  new  residents. Mr.  Spencer                                                                   
agreed  that the  department does  not have  enough staff  to                                                                   
fill all of  the beds. He did  not know if new beds  would be                                                                   
added if the positions were filled.                                                                                             
                                                                                                                                
In response  to a  question by  Co-Chair Mulder, Mr.  Spencer                                                                   
reiterated that  5 permanent full time positions  are vacant.                                                                   
Eleven on-call  and 2 non-permanent positions  are also open.                                                                   
He did  not know how  successful the  department would  be in                                                                   
filling them. He noted that the  item could be funded at $150                                                                   
thousand dollars  to allow some  margin of error.  Ms. Barton                                                                   
noted that the  state would still be behind  in wages offered                                                                   
by private  employers but emphasized  that employees  come to                                                                   
the state for a variety of reasons.  She added that the state                                                                   
may be more  successful in retaining employees  at the higher                                                                   
wage.                                                                                                                           
                                                                                                                                
Vice-Chair Bunde referred to projects  supported by passenger                                                                   
facility  charges (PFC).  Mr. Parkan  clarified that  the PFC                                                                   
generated   approximately  $850   thousand  dollars   at  the                                                                   
Fairbanks  airport   to  cover  the  cost  of   projects.  He                                                                   
anticipated  that collections  would  be  $2 million  dollars                                                                   
annually  at  the  two  airports. Funds  would  be  spent  on                                                                   
projects at  the airports they  were collected.   Funds would                                                                   
be used to cover a portion of the costs.                                                                                        
                                                                                                                                
Co-Chair Mulder  concluded that  funds would go  to Fairbanks                                                                   
and  be used  for debt  service.  Vice-Chair Bunde  clarified                                                                   
that other  funds would be  used until sufficient  PFC's were                                                                   
collected.                                                                                                                      
                                                                                                                                
Representative Hudson  asked for more information  on section                                                                   
9(b).                                                                                                                           
                                                                                                                                
MIKE MAHER,  DIRECTOR, DIVISION  OF ADMINISTRATIVE  SERVICES,                                                                   
DEPARTMENT  OF   REVENUE  observed   that  the  current   air                                                                   
condition unit  in the computer  room has failed  on numerous                                                                   
occasions.   It overheats  and  has ruined  some of the  disk                                                                   
drives.  It  currently has  a  new  compressor.   This  is  a                                                                   
critical situation.                                                                                                             
                                                                                                                                
Co-Chair  Mulder  asked  if  he  was  referring  to  the  PFD                                                                   
application season. Mr. Maher  agreed and noted that it would                                                                   
               st                                                                                                               
end on March 31.                                                                                                                
                                                                                                                                
Co-Chair Mulder asked  if this was a time  sensitivity issue.                                                                   
Mr. Maher  replied that it would  need to be done  this year,                                                                   
                             st                                                                                                 
but not necessarily by April 1.                                                                                                 
                                                                                                                                
Representative  John Davies  asked for  back up  on the  $1.5                                                                   
million dollar request for Arctic Power.                                                                                        
                                                                                                                                
Co-Chair Mulder  thought that the $1.5 million  dollars would                                                                   
be  matched  by $500  thousand  dollars  for  a total  of  $2                                                                   
million  dollars in  state funds  and $2  million dollars  in                                                                   
private sector  funds. There would  be a total of  $4 million                                                                   
dollars to work  on the opening of ANWR.  He  maintained that                                                                   
absent  the  request,  ANWR  would  not  be  opened.  Senator                                                                   
Murkowski   recommended   that   the   state   move   forward                                                                   
aggressively.                                                                                                                   
                                                                                                                                
CAM TOOHEY,  EXECUTIVE DIRECTOR,  ARCTIC POWER stressed  that                                                                   
the funding would present an opportunity  to develop Alaska's                                                                   
energy  potential.   President  Bush  has   supported  moving                                                                   
forward  on   opening  ANWR.  Congressional   legislation  is                                                                   
expected to move.                                                                                                               
                                                                                                                                
(TAPE CHANGE, HFC 01  - 30, SIDE A)                                                                                           
                                                                                                                                
Mr. Toohey  stated that they  would need help  from Alaskans.                                                                   
Representative  John  Davies  asked  for him  to  provide  an                                                                   
accounting of their budget.                                                                                                     
                                                                                                                                
Mr.  Toohey   observed  that  there  is   approximately  $480                                                                   
thousand  dollars from  a past  appropriation. He  maintained                                                                   
that Arctic Power has promoted the state's effort.                                                                              
                                                                                                                                
JANET  KOLASKI, DIRECTOR,  DIVISION OF  ELECTIONS, OFFICE  OF                                                                   
THE  LIEUTENANT GOVERNOR  discussed section  4(a). She  noted                                                                   
that  the  appropriation  to  run  the  primary  and  general                                                                   
elections was exhausted. The department  originally projected                                                                   
an over  expenditure for $400  thousand dollars.  The request                                                                   
was  reduced   to  $252  thousand  dollars.   The  additional                                                                   
expenses were  due to  change in the  primary law.  The money                                                                   
has been  spent out of the  operating budget.  The  result of                                                                   
moving  $150  thousand out  of  that  budget  would be  a  10                                                                   
percent reduction. She noted that  employees would have to be                                                                   
laid off in April. Offices would be closed by May.                                                                              
                                                                                                                                
LAURIE  ALRED,   BUSINESS  MANAGER,  DIVISION   OF  ELECTIONS                                                                   
provided  information  on  the legislation.  She  noted  that                                                                   
consolidation  elections  could   run  up  to  $100  thousand                                                                   
dollars.                                                                                                                        
                                                                                                                                
Representative  Hudson  asked the  actual  cost  of the  U.S.                                                                   
Supreme  Court's decision  on closed  primaries. Ms.  Kolaski                                                                   
replied that  one of  the big issues  was the second  ballot.                                                                   
Computers had to be reprogrammed.  Much of that work was done                                                                   
out   of   the   old  rules,   which   were   found   to   be                                                                   
unconstitutional. This was an emergency situation.                                                                              
                                                                                                                                
In  response  to  a question  by  Representative  Croft,  Ms.                                                                   
Kolaski  observed  that they  met  with Lt.  Governor  Ulmer,                                                                   
Senator Pearce  and another member  of the Finance  Committee                                                                   
before changing the primary ballot.                                                                                             
                                                                                                                                
Vice-Chair Bunde questioned why  the state is doing the local                                                                   
election  at Adak. Ms.  Kolaski explained  that the  election                                                                   
would  result in  the  incorporation of  Adak.  Once Adak  is                                                                   
incorporated  they would  handle their  own local  elections.                                                                   
The  state   would  also   conduct  the  Fairbanks   election                                                                   
concerning  consolidation  due to  the conflict  of  interest                                                                   
issue. She  noted that the  division also conducts  the Rural                                                                   
Education Attendance  Area and Coastal Resource  Service Area                                                                   
elections.                                                                                                                      
                                                                                                                                
Representative Croft  referred to the  legal case on  the tax                                                                   
assessment  challenge.  The  proposed   committee  substitute                                                                   
would  shift   50  percent  of   the  funding   to  statutory                                                                   
designated program receipts from  the North Slope Borough. He                                                                   
questioned if the state has authority  to take the funds from                                                                   
the Borough.                                                                                                                    
                                                                                                                                
Mr.  Dickinson  explained  statutes  charge  the  state  with                                                                   
assessing property.  The property  involved in the  challenge                                                                   
is in the North Slope Borough.  Most of the property tax goes                                                                   
to the  Borough. There was a  similar challenge in  1988. The                                                                   
North Slope Borough  provided much of the resources  used for                                                                   
the  1988  study.  He  noted   that  the  Borough  took  over                                                                   
performance of some  audits in 1992. There is  no cooperative                                                                   
agreement  to take over  the project.  The Borough  has hired                                                                   
consultants to  bid out analysis,  which was provided  to the                                                                   
department.                                                                                                                     
                                                                                                                                
RICHARD MCMAHON, CHIEF, LANDS  RECORDS, DEPARTMENT OF NATURAL                                                                   
RESOURCES  testified  via teleconference.  He  observed  that                                                                   
they would work with the State  Pipeline Coordinator's Office                                                                   
(SPCO)  and  the  commissioner  to  implement  Administrative                                                                   
Order 187.  The major  tasks are  associated with land  title                                                                   
work,   mapping,   geologic   data   assessment,   hydrologic                                                                   
assessment, and archeological  assessment. There is a request                                                                   
for four positions that would start in FY01.                                                                                    
                                                                                                                                
Mr. Britt  continued discussing  the responsibilities  of the                                                                   
State  Pipeline  Coordinator's  Office.  He  noted  that  the                                                                 
supplemental  request would allow  permitting authorities  to                                                                   
begin to prepare  for receipt of a gas  pipeline application.                                                                   
With the  jumpstart envisioned  in the supplemental  request,                                                                   
the  permitting agencies  will  receive better  applications,                                                                   
have more fundamental data when  the applications arrive, and                                                                   
be ready to move faster in approving the applications.                                                                          
                                                                                                                                
In FY 2001, the State Pipeline  Coordinator's Office proposes                                                                 
to begin  implementing  Administrative Order  187. The  major                                                                   
task associated  with that implementation is  the creation of                                                                   
a  Gas Pipeline  Office (GPO)  as  an operating  unit of  the                                                                   
SPCO. At the moment, the Federal-State  Joint Pipeline Office                                                                   
is the only operating unit of  the SPCO. The GPO will provide                                                                   
multi-agency   one-stop   permitting,    authorization,   and                                                                   
oversight for  a gas pipeline application comparable  to that                                                                   
provided by JPO for TAPS.                                                                                                       
                                                                                                                                
Mr. Britt  observed that  the main  FY 2001 tasks  associated                                                                   
with  the  creation  of  a  GPO  are  finding  office  space,                                                                   
staffing the  office, and creating  the policy  and procedure                                                                   
that  will   allow  participating  state  agencies   to  work                                                                   
effectively together.  The SPCO  will provide the  management                                                                   
and  administration  for  the  GPO,  and  will  perform  land                                                                   
management and engineering technical  work in the office. The                                                                   
office is  proposing to hire  at the end  of FY 01:  a deputy                                                                   
SPC, an Administration  Manager, a System  Administrator, and                                                                   
a  Records  Manager  for  the GPO.  He  stressed  that  staff                                                                   
recruitment  will be  difficult,  and he  proposes to  secure                                                                   
assistance  during   FY  2001   to  allow  them   to  recruit                                                                   
effectively during FY 2002.                                                                                                     
                                                                                                                                
Substantive  work  would  occur  during FY  2001.  That  work                                                                   
includes:                                                                                                                       
                                                                                                                                
-  inventorying existing information                                                                                            
- creating consolidated plans to fill information gaps                                                                          
-  Creating  a consolidated  plan to  collect information  in                                                                   
   the summer of 2001                                                                                                           
-  working  with  federal  and Canadian  agencies  to  create                                                                   
   compatible processes                                                                                                         
-  working   with   project   proponents   to   assure   that                                                                   
   applications are complete                                                                                                    
- engaging and informing the public                                                                                             
                                                                                                                                
Mr.  Britt clarified  that  the office  would  be located  in                                                                   
Anchorage. Travel  would allow interaction with  Canadian and                                                                   
federal  agencies.   The  goal   would  be  to   establish  a                                                                   
memorandum of  understanding between the  federal government,                                                                   
Canadian government  and state agencies so  that requirements                                                                   
would be compatible.                                                                                                            
                                                                                                                                
Representative Croft  questioned if the SPCO  would inventory                                                                   
existing  information   on  the  highway  route.   Mr.  Britt                                                                   
explained that  they do  not have up  to date information  on                                                                   
the Alaska Natural Gas Transportation  System (ANGTS) highway                                                                   
route. He noted that work with  Yukon Pacific files continues                                                                   
on an on-going basis and no additional  funding is needed for                                                                   
review of that data.                                                                                                            
                                                                                                                                
BILL VAN DYKE, LEASE ADMINISTRATION/ROYALTY,  DIVISION OF OIL                                                                   
AND  GAS,  DEPARTMENT  OF  NATURAL  RESOURCES  testified  via                                                                   
teleconference. He noted that  the goal is to get information                                                                   
in  hand  by  year-end  in anticipation  of  a  gas  pipeline                                                                   
application. The Division would  perform a variety of studies                                                                   
on gas  supply and  in state  gas demand:   ANS Gas  Pipeline                                                                   
Study  and  Gas  Pipeline  Supply  Side  Study  and  In-state                                                                   
Natural Gas Demand and ANS Gas Sales (Reservoir Studies).                                                                       
                                                                                                                                
KEN  FREEMAN,  SPECIAL  ASSISTANCE,  BUSINESS  AND  GAS  LINE                                                                   
DEVELOPMENT, OFFICE OF THE GOVERNOR  provided information. He                                                                   
noted  that  the  Governor  assigned him  as  staff  for  the                                                                   
Highway Natural  Gas Policy Council.  The Council  would look                                                                   
at maximizing  the benefits of  the gas pipeline  project and                                                                   
seek  public   input.  The  budgetary  items   include  staff                                                                   
support,  travel   and  expenses  for  council   members  and                                                                   
contingency contract funds, which would pay for experts.                                                                        
                                                                                                                                
Representative  Hudson  questioned if  the  effort should  be                                                                   
centered in one office in Anchorage.  Ms. McConnell clarified                                                                   
that positions would be collocated on July 1, 2001.                                                                             
                                                                                                                                
JAN LEVY,  SUPERVISING  ATTORNEY, JUNEAU  OIL GAS AND  MINING                                                                   
SECTION,  DEPARTMENT  OF LAW  discussed  the  request by  the                                                                   
Department  of Law. The  department's  request is for  $203.7                                                                   
thousand dollars to incorporate  additional in-house and out-                                                                   
house  attorney  time.  The  intent   is  to  prevent  future                                                                   
challenges.                                                                                                                     
                                                                                                                                
LARRY  PERSILY, DEPUTY  COMMISSIONER,  DEPARTMENT OF  REVENUE                                                                   
observed  that  the department  is  asking for  $75  thousand                                                                   
dollars to allow  them to do a good job collecting  taxes. He                                                                   
noted that  the state has never  dealt with a gas  project of                                                                   
this size.                                                                                                                      
                                                                                                                                
Representative Croft MOVED to adopt Amendment #1:                                                                               
                                                                                                                                
   Page 3, Line 22, insert a new section to read,                                                                               
                                                                                                                                
   "DEPARTMENT  OF ADMINSTRATION.  The  sum  of  $195,000  is                                                                   
   appropriated from  the general fund  to the Department  of                                                                   
   Administration,  division of  Alaska  longevity  programs,                                                                   
   pioneers homes,  for increased  costs for  nurses for  the                                                                   
   fiscal year ending June 30,2001"                                                                                             
                                                                                                                                
There being no OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT Amendment 2:                                                                                     
                                                                                                                                
     DEPARTMENT OF NATURAL RESOURCES   The sum of $600,000 is                                                                   
     appropriated from the general  fund to the Department of                                                                   
     Natural Resources, state  pipeline coordinator's office,                                                                   
     for gas pipeline development and related activities.                                                                       
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Hudson MOVED to ADOPT Amendment 3:                                                                               
                                                                                                                                
     The  sum of  $31,500 is  appropriated  from the  general                                                                   
     fund  to  the  Department   of  Revenue,  administrative                                                                   
     services  division,  for   emergency  replacement  of  a                                                                   
     computer room air conditioner for the fiscal year                                                                          
     ending June 30, 2001.                                                                                                      
                                                                                                                                
Co-Chair Mulder suggested that the Department of Revenue                                                                        
provide justification of overtime before presenting the                                                                         
request to the other body.                                                                                                      
                                                                                                                                
There being NO OBJECTION, Amendment 3 was adopted.                                                                              
                                                                                                                                
Representative Foster MOVED to ADOPT proposed committee                                                                         
substitute, work draft #22-GH1085|C. There being NO                                                                             
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Representative Foster MOVED to report CSHB 117 (FIN) out of                                                                     
Committee. There being NO OBJECTION, it was so ordered.                                                                         
                                                                                                                                
CSHB 117 (FIN) was REPORTED out of Committee with a "do                                                                         
pass" recommendation.                                                                                                           
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 5:00 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects