Legislature(1993 - 1994)

04/12/1993 01:40 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 12, 1993                                        
                            1:40 P.M.                                          
                                                                               
  TAPE HFC 93 - 100, Side 1, #000 - end.                                       
  TAPE HFC 93 - 100, Side 2, #000 - end.                                       
  TAPE HFC 93 - 101, Side 1, #000 - end.                                       
  TAPE HFC 93 - 101, Side 2, #000 - #076.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the meeting of the House  Finance                 
  Committee to order at 1:40 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Martin                          
  Representative Parnell        Representative Martin                          
                                                                               
  Representatives Hoffman, Grussendorf, Therriault and Navarre                 
  were not present for the meeting.                                            
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative     Cliff     Davidson;     Jerome    Shelby,                 
  (teleconference),  Mayor,  Kodiak,  Alaska;  Mary  McBurney,                 
  (teleconference),  Executive   Director,  Cordova   District                 
  Fishermen    United,    Cordova,    Alaska;   Dave    Crane,                 
  (teleconference),  Mayor,  Seward, Alaska;  Wayne Carpenter,                 
  (teleconference),  Director,  Chamber  of Commerce,  Seward,                 
  Alaska; Nancy Lethchoe, (teleconference),  President, Alaska                 
  Wilderness  Recreation  and  Tourism   Association,  Valdez,                 
  Alaska;   Ronald   Kuczer,   Assistant    General   Manager,                 
  (teleconference),  Municipal  Light  and  Power,  Anchorage,                 
  Alaska;  John  French, (teleconference),  Fishery Industrial                 
  Technology  Center,  Kodiak,   Alaska;  Dave  Daisey,  CRRC,                 
  Anchorage,  Alaska;  Bobby  Pool, (teleconference),  Design,                 
  Cambridge  Seven Associates,  Director  of IDEA,  Cambridge,                 
  Massachusetts;  Willard  Dunham,   Chairman  of  the  Seward                 
  Association  for  the  Advancement  of  Marine  Development,                 
  Seward, Alaska; Dr. A.J. Paul, Assistant Professor of Marine                 
  Science,  University of  Alaska  -  Fairbanks, Alaska;  Mary                 
  Forbes,  (teleconference),  Chair, Kodiak  Autobahn Society,                 
  Kodiak,  Alaska;  Ann  Tastalina,  Superintendent,  National                 
  Park, Seward, Alaska;  Alan Phipps, (teleconference), Alaska                 
  Center for the  Environment, Anchorage, Alaska; Nancy  Bird,                 
  (teleconference),  Self,  Cordova  City   Council,  Cordova,                 
  Alaska;  Chip  Dennerline,   (teleconference),  Cook   Inlet                 
  Region,  Seward,  Alaska;  Jack  Babcott,  (teleconference),                 
                                                                               
                                1                                              
                                                                               
                                                                               
  Self,  Cordova, Alaska;  Ray  Rolande,  MAP,  University  of                 
  Alaska  Marine  Advisory  Program,  Aquaculture  Specialist,                 
  Anchorage,  Alaska;  Tyler  Jones,   (teleconference),  City                 
  Manager,  Seward,  Alaska;  Carl  Becker,  (teleconference),                 
  Self,  Cordova,  Alaska;  Diane  McBride,  (teleconference),                 
  Self, Homer,  Alaska; Kenneth Blatchford,  Chugiack Regional                 
  Resource Committee (CRRC), Seward, Alaska; Margaret Branson,                 
  Alaska Shellfish Growers Association, Juneau, Alaska;  Penny                 
  Osfalt,  (teleconference),  Self,  Cordova,   Alaska;  Donna                 
  Fisher,  (teleconference),  Valdez  City   Council,  Valdez,                 
  Alaska; Charles  Cole, Attorney General,  Department of Law;                 
  Chris  Gates, Director,  Division  of Economic  Development,                 
  Department  of Law; John Sandor, Commissioner, Department of                 
  Environmental  Conservation;   Carl  Rosier,   Commissioner,                 
  Department  of  Fish  and   Game;  Bruce  Campbell,   Acting                 
  Commissioner,  Department  of   Transportation  and   Public                 
  Facilities.                                                                  
                                                                               
  SUMMARY INFORMATION                                                          
  HB 269    An   Act   making   special   appropriations   for                 
            restoration projects relating to  the Exxon Valdez                 
            oil spill and for oil spill response projects; and                 
            providing for an effective date.                                   
                                                                               
            HB  269   was  held   in  Committee   for  further                 
            discussion.                                                        
                                                                               
  CONSENT AGENDA                                                               
  HB 170    An Act extending the termination date of the Board                 
            of Marine Pilots.                                                  
                                                                               
            HB 170 was  reported out of  Committee with a  "do                 
            pass" recommendation and  with a zero fiscal  note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development dated 3/31/93.                                         
  HB 268    An Act extending the termination date of the Board                 
            of  Dispensing  Opticians;  and  providing for  an                 
            effective date.                                                    
                                                                               
            HB 268 was  reported out of  Committee with a  "do                 
            pass"  recommendation and with  a zero fiscal note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development.                                                       
  HB 270    An Act extending the termination date of the Board                 
            of Examiners in  Optometry; and  providing for  an                 
            effective date.                                                    
                                                                               
            HB 270 was  reported out of  Committee with a  "do                 
                                                                               
                                2                                              
                                                                               
                                                                               
            pass" recommendation and with  a zero fiscal  note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development.                                                       
  HB 271    An Act extending the termination date of the Board                 
            of  Public  Accountancy;   and  providing  for  an                 
            effective date.                                                    
                                                                               
            HB  271 was reported  out of Committee  with a "do                 
            pass" recommendation  and with a zero  fiscal note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development.                                                       
  HB 272    An Act extending the termination date of the Board                 
            of  Chiropractic Examiners;  and providing  for an                 
            effective date.                                                    
                                                                               
            HB  272 was reported  out of Committee  with a "do                 
            pass" recommendation  and with a zero  fiscal note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development.                                                       
                                                                               
  CONSENT AGENDA                                                               
                                                                               
  Representative Martin  MOVED to report  the Consent Calendar                 
  out  of Committee  with individual  recommendations.   There                 
  being NO OBJECTIONS, it was adopted.                                         
  HOUSE BILL 170                                                               
                                                                               
       "An Act extending the termination date of the Board  of                 
       Marine Pilots."                                                         
                                                                               
  HB  170  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Commerce and Economic Development.                                        
  HOUSE BILL 268                                                               
                                                                               
       "An Act extending the termination date of the Board  of                 
       Dispensing Opticians;  and providing  for an  effective                 
       date."                                                                  
                                                                               
  HB  268  was reported  out  of  Committee with  a  "do pass"                 
  recommendation  and  a  zero  fiscal  by the  Department  of                 
  Commerce and Economic Development.                                           
  HOUSE BILL 270                                                               
                                                                               
       "An Act  extending the termination date of the Board of                 
       Examiners in Optometry; and providing for  an effective                 
       date."                                                                  
                                                                               
                                3                                              
                                                                               
                                                                               
  HB  270  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Commerce and Economic Development.                                        
  HOUSE BILL 271                                                               
                                                                               
       "An Act extending the termination date of the  Board of                 
       Public  Accountancy;  and  providing for  an  effective                 
       date."                                                                  
                                                                               
  HB  271  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Commerce and Economic Development.                                        
  HOUSE BILL 272                                                               
                                                                               
       "An  Act extending the termination date of the Board of                 
       Chiropractic Examiners; and providing  for an effective                 
       date."                                                                  
                                                                               
  HB  272  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a  fiscal note by the Department  of                 
  Commerce and Economic Development.                                           
  HOUSE BILL 269                                                               
                                                                               
       "An Act making  special appropriations for  restoration                 
       projects relating to the Exxon Valdez oil spill and for                 
       oil  spill  response  projects;  and  providing for  an                 
       effective date."                                                        
                                                                               
  JEROME  SHELBY,  (teleconference),  MAYOR, CITY  OF  KODIAK,                 
  KODIAK, ALASKA, noted  his disappointment with  the proposed                 
  legislation.  He  pointed out  that Kodiak experienced  over                 
  50% of  the damages  from the  oil spill  although they  are                 
  scheduled to receive  only 1% of  the restoration fund.   He                 
  urged the Committee to  find a way to  fund Kodiak the  $8.5                 
  million dollars.                                                             
                                                                               
  MARY MCBURNEY, (teleconference), EXECUTIVE DIRECTOR, CORDOVA                 
  DISTRICT  FISHERMEN UNITED  (CDFU),  CORDOVA, ALASKA,  noted                 
  that the proposed  legislation disregards  the needs of  the                 
  Cordova  Sound area.  She would  not support the legislation                 
  and would not support  using funds for the oil  spill ferry.                 
  He pointed out  that HB  411, HB  10 and SB  98 support  the                 
  needs of the people and damage created by the oil spill.                     
                                                                               
  DAVE CRANE, (teleconference), MAYOR, CITY OF SEWARD, SEWARD,                 
  ALASKA, noted  his support for the proposed legislation.  He                 
  felt that the legislation provided  long range planning with                 
  inclusion of the Sea Life Center.                                            
                                                                               
                                4                                              
                                                                               
                                                                               
  WAYNE CARPENTER, (teleconference), DIRECTOR,  SEWARD CHAMBER                 
  OF  COMMERCE,  SEWARD,  ALASKA,  noted  his support  of  the                 
  legislation.  He voiced the need for marine mammal  research                 
  rehabilitation which the bill would accommodate.                             
                                                                               
  NANCY   LETHCOE,    (teleconference),   PRESIDENT,    ALASKA                 
  WILDERNESS RECREATION & TOURISM ASSOCIATION (AWRTA), VALDEZ,                 
  ALASKA,  questioned the feasibility  studies provided by the                 
  proposed  legislation.   She noted  her support  for  SB 98,                 
  pointing out that funds would be used for restoration rather                 
  than construction projects.                                                  
  RONALD KUCZER, (teleconference), ASSISTANT  GENERAL MANAGER,                 
  MUNICIPAL LIGHT  AND  POWER,  ANCHORAGE,  ALASKA,  addressed                 
  Section VI of the proposed legislation.   He stated that the                 
  completed project  would double  the capacity  of the  sport                 
  fishery hatchery.  He added, Municipal Light and Power would                 
  support Section VI.                                                          
                                                                               
  JOHN FRENCH, (teleconference), DIRECTOR,  FISHERY INDUSTRIAL                 
  TECHNOLOGY CENTER, KODIAK,  ALASKA, commented  on Section  X                 
  which   would   enhance  development   of   fish  processing                 
  techniques.  Section X would directly affect the recovery of                 
  the   commercial   subsistence   and  recreational   fishery                 
  services.                                                                    
                                                                               
  Representative  Brown questioned  the feasibility  study and                 
  the additional costs  incurred by  the University  resulting                 
  from the  proposed expenditure.   Mr. French noted  that the                 
  overall project will  cost $15 -  $20 million dollars.   The                 
  project will involve finding "other" funding sources.                        
                                                                               
  BOBBY   POOL,   (teleconference),   DESIGN   AND   TECHNICAL                 
  DEVELOPMENT  AT  CAMBRIDGE   SEVEN  ASSOCIATES,   CAMBRIDGE,                 
  MASSACHUSETTS,  commented  that his  company  is  the United                 
  States   premier   developer   of   environmental   cultural                 
  institutions.    He thought  the  facility would  be popular                 
  effecting the economics  in the region where  it is located.                 
  The facility would become a  self supporting institution and                 
  would provide an  increase to tourism  and at the same  time                 
  would be an  education research location for  marine animals                 
  in Alaska.                                                                   
                                                                               
  WILLARD DUNHAM,  CHAIRMAN  FOR THE  SEWARD  ASSOCIATION  FOR                 
  ADVANCEMENT OF  MARINE DEVELOPMENT (SAAMS),  SEWARD, ALASKA,                 
  provided  the  Committee  with a  handout,  ALASKA  SEA LIFE                 
  CENTER BUSINESS PLAN.  [Attachment #2].  He pointed out that                 
  the facility would be a self sustaining operational facility                 
  providing research rehabilitation for public education.                      
                                                                               
  DR.  A.J.  PAUL,  ASSISTANT  PROFESSOR  OF  MARINE  SCIENCE,                 
  UNIVERSITY OF  ALASKA - FAIRBANKS, FAIRBANKS,  ALASKA, urged                 
                                                                               
                                5                                              
                                                                               
                                                                               
  the Committee to  support the Alaska  Sea Life project.   He                 
  provided the  Committee  with  Attachment  #1,  illustrating                 
  population decline to mammal sea  life since the oil  spill.                 
  He added,  the legislation  is widely  supported.   Research                 
  indicates that the facility would be a destination point for                 
  Alaskan visitors and tourists.                                               
                                                                               
  Representative Brown asked if it would be necessary  to have                 
  all  funding   obtained   before  the   conditions  of   the                 
  appropriation would  be met.   Mr.  Dunhan replied it  would                 
  not.    Financial liability  could  be demonstrated  with an                 
  allocation of  $12.5  million dollars.   To  fully fund  the                 
  project  will  cost $46  million  dollars.   The anticipated                 
  "other" funding sources are general foundations.  Mr. Dunham                 
  pointed out,  two hundred  and ten  thousand people  visited                 
  Seward last year.                                                            
                                                                               
  (Tape Change, HFC 93 - 100, Side 2).                                         
                                                                               
  MARY FORBES, (teleconference), AUTOBAHN  CONSERVATION CHAIR,                 
  KODIAK,  ALASKA,  stated  that  her  organization  does  not                 
  support the proposed legislation,  whereas, they do  support                 
  HB 10 and SB 98.                                                             
                                                                               
  ANN  TASTALINA,  (teleconference),  SUPERINTENDENT OF  FIORD                 
  NATIONAL  PARK,   SEWARD,  ALASKA,  noted  support   of  the                 
  legislation and the  Sea Life Center facility.   She pointed                 
  out that there is no place in Alaska to do research on dying                 
  birds and marine  animals.   Rehabilitation is an  important                 
  component for the State.                                                     
                                                                               
  ALAN  PHIPPS,   (teleconference),  ALASKA  CENTER   FOR  THE                 
  ENVIRONMENT, ANCHORAGE, ALASKA,  noted his support of  SB 98                 
  and HB 10.  He emphasized  that the proposed legislation has                 
  no relationship between environment and restoration.                         
                                                                               
  NANCY BIRD,  (teleconference), SELF,  CORDOVA CITY  COUNCIL,                 
  CORDOVA,  ALASKA, expressed  disappointment  with so  little                 
  funding allocated to  the Prince William Sound  area through                 
  the  legislation.   She  added  that the  funds  purpose was                 
  clearly defined of which construction was not included.  She                 
  urged support of HB 10.                                                      
                                                                               
  CHIP  DENNERLEIN,  (teleconference),   COOK  INLET   REGION,                 
  SEWARD,  ALASKA, noted his support of the agreement with the                 
  State.                                                                       
                                                                               
  JACK BABCOTT, (teleconference),  SELF, PRINCE WILLIAM SOUND,                 
  CORDOVA,  ALASKA, advised  that HB 269  does not  affect the                 
  actual  oil spill  impacted  areas  especially  for  fishery                 
  related  projects.   He urged  the Committee  to reject  the                 
  proposed legislation.                                                        
                                                                               
                                6                                              
                                                                               
                                                                               
  RAY ROLANDE,  AQUACULTURE SPECIALIST,  UNIVERSITY OF  ALASKA                 
  MARINE ADVISORY PROGRAM, ANCHORAGE, ALASKA, spoke in support                 
  of the portion of the bill which address the construction of                 
  shell fish hatcheries.  He pointed  out that Alaska does not                 
  have a facility to tap  research already classified by other                 
  organizations.    He  recommended the  area  be  expanded to                 
  include  the Kenai  Peninsula  and   added that  Alaska only                 
  needs one high quality hatchery facility.                                    
                                                                               
  DAVE DAISEY, VILLAGE DEVELOPMENT IN  PRINCE WILLIAM SOUND OF                 
  AQUACULTURE  PROJECTS  -  OYSTER FARMS,  ANCHORAGE,  ALASKA,                 
  pointed out that oyster development is a current resource to                 
  many  village  areas.   For these  programs  to work,  it is                 
  necessary that a hatchery provide a reliable supply of seed.                 
  Section V  provides the  necessary allocation  to operate  a                 
  hatchery  for three  to  five years  before  it can  sustain                 
  itself.  He urged the Committee's support.                                   
                                                                               
  Representative Brown  questioned the  overall  costs of  the                 
  program.    Mr.  Daisey  offered  to provide  the  Committee                 
  additional information.                                                      
                                                                               
  TYLER JONES, (teleconference), CITY MANAGER, CITY OF SEWARD,                 
  SEWARD,  ALASKA,  stated  his  support  of  the legislation,                 
  pointing out that it would provide a location  for research,                 
  rehabilitation  and education.  He added, the City of Seward                 
  has not received restoration funds to date.                                  
                                                                               
  CARL  BECKER,  (teleconference),   SELF,  CORDOVA,   ALASKA,                 
  testified against the  legislation.  Cordova supports  HB 10                 
  and  SB  98  and added  that  money  from  the Exxon  Valdez                 
  settlement  should   go  to   restitution  and   damages  of                 
  resources.                                                                   
                                                                               
  DIANE MCBRIDE, (teleconference),  SELF, HOMER, ALASKA, asked                 
  that  Section  III  remain  in  the  legislation.    Habitat                 
  acquisition is important to the fisheries in Cook Inlet.                     
                                                                               
  KENNY  BLATCHFORD,  CHUGIAK  REGIONAL  RESOURCE  COMMISSION,                 
  SEWARD, ALASKA,  spoke in  favor of  HB  269, encouraging  a                 
  change to the site consideration.  He asked that the Chugiak                 
  Region  and  Kenai  Peninsula  receive  funds  for  hatchery                 
  development.                                                                 
                                                                               
  Representative Brown  reiterated concern for  the total cost                 
  of the proposed project.  Mr.  Blatchford stated it would be                 
  $1.2 million dollars for  a portion of the facility.   There                 
  would  be  two separate  projects.   The  technical research                 
  facility would be administered by the Department of Fish and                 
  Game.   The hatchery would  be administered by  Mt. Marathon                 
  Native  Association.    Representative Brown  asked  if  the                 
                                                                               
                                7                                              
                                                                               
                                                                               
  current language in the bill  would authorize the Department                 
  of Fish  and Game authority  to allocate the  project funds.                 
  Mr. Blatchford  stated that  language was  contained in  the                 
  original bill, although through committee substitute it  has                 
  been changed.                                                                
                                                                               
  MARGARET  BRANSON,  ALASKA  SHELLFISH  GROWERS  ASSOCIATION,                 
  JUNEAU, ALASKA,  provided the Committee with letters written                 
  to the Governor  addressing the growth in the  technical and                 
  shellfish hatcheries. [Attachment #5].                                       
                                                                               
  (Tape Change HFC 93-101, Side 1).                                            
                                                                               
  PENNY  OSFALT,  (teleconference),  SELF,   CORDOVA,  ALASKA,                 
  emphasized  HB  269  would be  unfair  legislation  to those                 
  living  in Prince William Sound.  She  stated that HB 10 and                 
  SB 98 were more equitable to all communities affected by the                 
  spill.   She reiterated  that construction would  not be the                 
  appropriate use of the fund.                                                 
                                                                               
  DONNA  FISHER,  (teleconference),   MEMBER  OF  VALDEZ  CITY                 
  COUNCIL, VALDEZ, ALASKA, testified in opposition to the road                 
  construction recommended near Whittier.                                      
                                                                               
  Representative Brown requested backup  material for Sections                 
  intention of the  Exxon Valdez Council Board of  Trustees to                 
  provide  the  $25 million  dollars  to  make  up  the  total                 
  anticipated costs of $46 million dollars.                                    
                                                                               
  CHARLES COLE,  ATTORNEY GENERAL,  DEPARTMENT OF  LAW, stated                 
  that the                                                                     
  Council consisted of the Department of Commerce and Economic                 
  Development,  the  Department  of   Agriculture  -  federal,                 
  Department of Natural Resources, Department of Environmental                 
  Conservation,  and the Department of Law.  The Trustees have                 
  not yet  considered  the  application as  it  has  not  been                 
  presented to date through the restoration team.                              
                                                                               
  Representative Brown recommended  that the appropriation  be                 
  conditioned until the entire balanced is obtained.  Co-Chair                 
  Larson  asked if it would be a viable operation with a $12.5                 
  million  dollar  appropriation.     Attorney  General   Cole                 
  recommended the matter be addressed by Seward residents.                     
                                                                               
  CARL  ROSIER, COMMISSIONER,  DEPARTMENT  OF FISH  AND  GAME,                 
  responded that less than $46 million dollars could provide a                 
  viable program, although he did not know at what level.                      
                                                                               
  CHRIS  GATES, DIRECTOR,  DIVISION  OF ECONOMIC  DEVELOPMENT,                 
  DEPARTMENT OF  LAW, stated that  funds will be  required for                 
  both the financial feasibility study and  the match grants.                  
                                                                               
                                8                                              
                                                                               
                                                                               
  Representative  Brown  noted  her  concern  that  the  $12.5                 
  million dollars would not provide the necessary resources to                 
  finish the project.   She felt  that the proposal should  be                 
  conditioned to provide  assurance that State monies  are not                 
  the  only  funds to  carry the  project.   Dr.  Paul refuted                 
  Representative Brown's suggestion stating  that most of  the                 
  money  would  come  from  the  National Science  Foundation.                 
  Attorney  General  Cole  reminded  the  Committee  that  the                 
  Governor strongly supports the project.                                      
                                                                               
  JOHN  SANDOR,  COMMISSIONER,  DEPARTMENT   OF  ENVIRONMENTAL                 
  CONSERVATION, addressed  Section IV.  He stated there are no                 
  plans for the Visitor Center  although the proposal would be                 
  consistent with what  the Kachemak  Bay State Park  Citizens                 
  Advisory Board has recommended.   Representative Brown asked                 
  if  the  board  had  specifically  considered  that project.                 
  Commissioner Sandor replied they had not.                                    
                                                                               
  Representative Brown  asked if  the Department  of Fish  and                 
  Game  would  respond  to  the  operational costs  listed  in                 
  Section  V.   Commissioner  Rosier  indicated there  are two                 
  parts to the project.  The proposal in HB  269 addresses the                 
  part  of  the  facility  which  would  be  operated  by  the                 
  Department.    Currently,  there is  a  proposal  before the                 
  trustees to fund  a private hatchery facility in  the Prince                 
  William Sound area.   The initial funding would require $300                 
  thousand dollars annual operational expense.                                 
                                                                               
  Representative Brown  asked how  many hatcheries  can Alaska                 
  support.  Commissioner Rosier noted that hatchery operations                 
  for the shell fish industry are limited.                                     
                                                                               
  Co-Chair Larson questioned the $15 million dollar allocation                 
  for design and construction of the Whittier access road.                     
                                                                               
  BRUCE   CAMPBELL,   ACTING   COMMISSIONER,   DEPARTMENT   OF                 
  TRANSPORTATION  AND  PUBLIC  FACILITIES,  replied  that  the                 
  environmental impact  of the Whittier access  road currently                 
  is being  studied from federal funds.  Concluding the study,                 
  a  location determination  will be  made.   The $15  million                 
  dollars will be  used to  expedite environmental studies  if                 
  the road is not built.   There will be no construction money                 
  requested.   Representative  Martin  recommended adding  the                 
  language "and match" to the $15 million dollar request.                      
                                                                               
  Representative  Brown  asked  the total  cost  of  the road.                 
  Acting Commissioner Campbell  noted that  cost could not  be                 
  estimated.  Representative Brown asked if the balance of the                 
  cost  would  be  a  federal  expense.   Acting  Commissioner                 
  Campbell stated that it  could be funded with  federal funds                 
                                                                               
                                9                                              
                                                                               
                                                                               
  and offered to provide the data requested.                                   
                                                                               
  Attorney  General   Cole  provided  the  Committee   with  a                 
  comparison of HB  411 (SB  483), HB  10, SB 98  and HB  269.                 
  [Attachment  #6].    He urged  the  Committee  to  adopt the                 
  proposal provided by the Governor.                                           
                                                                               
  (Tape Change, HFC 93-101, Side 2).                                           
                                                                               
  Co-Chair  Larson  pointed  out that  the  $5  million dollar                 
  allocation  for  the oil  spill  ferry  would no  longer  be                 
  necessary in the proposed legislation.                                       
                                                                               
  HB 269 was HELD in Committee for further consideration.                      
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:50 P.M.                                           
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 12, 1993                                        
                            1:40 P.M.                                          
                                                                               
  TAPE HFC 93 - 100, Side 1, #000 - end.                                       
  TAPE HFC 93 - 100, Side 2, #000 - end.                                       
  TAPE HFC 93 - 101, Side 1, #000 - end.                                       
  TAPE HFC 93 - 101, Side 2, #000 - #076.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the meeting of the House  Finance                 
  Committee to order at 1:40 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Martin                          
  Representative Parnell        Representative Martin                          
                                                                               
  Representatives Hoffman, Grussendorf, Therriault and Navarre                 
  were not present for the meeting.                                            
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative     Cliff     Davidson;     Jerome    Shelby,                 
  (teleconference),  Mayor,  Kodiak,  Alaska;  Mary  McBurney,                 
  (teleconference),  Executive   Director,  Cordova   District                 
  Fishermen    United,    Cordova,    Alaska;   Dave    Crane,                 
  (teleconference),  Mayor,  Seward, Alaska;  Wayne Carpenter,                 
  (teleconference),  Director,  Chamber  of Commerce,  Seward,                 
  Alaska; Nancy Lethchoe, (teleconference),  President, Alaska                 
                                                                               
                               10                                              
                                                                               
                                                                               
  Wilderness  Recreation  and  Tourism   Association,  Valdez,                 
  Alaska;   Ronald   Kuczer,   Assistant    General   Manager,                 
  (teleconference),  Municipal  Light  and  Power,  Anchorage,                 
  Alaska;  John  French, (teleconference),  Fishery Industrial                 
  Technology  Center,  Kodiak,  Alaska;  Dave  Daisey,   CRRC,                 
  Anchorage,  Alaska;  Bobby  Pool, (teleconference),  Design,                 
  Cambridge  Seven  Associates, Director  of  IDEA, Cambridge,                 
  Massachusetts;  Willard  Dunham,  Chairman  of  the   Seward                 
  Association  for  the  Advancement  of  Marine  Development,                 
  Seward, Alaska; Dr. A.J. Paul, Assistant Professor of Marine                 
  Science,  University of  Alaska  - Fairbanks,  Alaska;  Mary                 
  Forbes,  (teleconference),  Chair, Kodiak  Autobahn Society,                 
  Kodiak,  Alaska;  Ann  Tastalina,  Superintendent,  National                 
  Park, Seward, Alaska; Alan Phipps, (teleconference),  Alaska                 
  Center for the Environment,  Anchorage, Alaska; Nancy  Bird,                 
  (teleconference),  Self,  Cordova  City   Council,  Cordova,                 
  Alaska;  Chip  Dennerline,   (teleconference),  Cook   Inlet                 
  Region,  Seward,  Alaska;  Jack  Babcott,  (teleconference),                 
  Self,  Cordova,  Alaska;  Ray Rolande,  MAP,  University  of                 
  Alaska  Marine  Advisory  Program,  Aquaculture  Specialist,                 
  Anchorage,  Alaska;  Tyler  Jones,   (teleconference),  City                 
  Manager,  Seward,  Alaska;  Carl  Becker,  (teleconference),                 
  Self,  Cordova,  Alaska;  Diane  McBride,  (teleconference),                 
  Self, Homer,  Alaska; Kenneth Blatchford,  Chugiack Regional                 
  Resource Committee (CRRC), Seward, Alaska; Margaret Branson,                 
  Alaska Shellfish Growers Association, Juneau, Alaska;  Penny                 
  Osfalt,  (teleconference),  Self,  Cordova,   Alaska;  Donna                 
  Fisher,  (teleconference),  Valdez  City   Council,  Valdez,                 
  Alaska; Charles Cole, Attorney  General, Department of  Law;                 
  Chris  Gates, Director,  Division  of Economic  Development,                 
  Department of Law; John  Sandor, Commissioner, Department of                 
  Environmental  Conservation;   Carl  Rosier,   Commissioner,                 
  Department  of   Fish  and  Game;  Bruce   Campbell,  Acting                 
  Commissioner,  Department  of   Transportation  and   Public                 
  Facilities.                                                                  
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 269    An   Act   making   special   appropriations   for                 
            restoration projects relating to  the Exxon Valdez                 
            oil spill and for oil spill response projects; and                 
            providing for an effective date.                                   
                                                                               
            HB   269  was  held   in  Committee   for  further                 
            discussion.                                                        
                                                                               
  CONSENT AGENDA                                                               
                                                                               
  HB 170    An Act extending the termination date of the Board                 
            of Marine Pilots.                                                  
                                                                               
            HB 170 was  reported out of  Committee with a  "do                 
                                                                               
                               11                                              
                                                                               
                                                                               
            pass" recommendation and with  a zero fiscal  note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development dated 3/31/93.                                         
                                                                               
  HB 268    An Act extending the termination date of the Board                 
            of  Dispensing  Opticians;  and providing  for  an                 
            effective date.                                                    
                                                                               
            HB  268 was reported  out of Committee  with a "do                 
            pass" recommendation  and with a zero  fiscal note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development.                                                       
                                                                               
  HB 270    An Act extending the termination date of the Board                 
            of Examiners  in Optometry;  and providing for  an                 
            effective date.                                                    
                                                                               
            HB  270 was reported  out of Committee  with a "do                 
            pass" recommendation  and with a zero  fiscal note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development.                                                       
                                                                               
  HB 271    An Act extending the termination date of the Board                 
            of  Public  Accountancy;   and  providing  for  an                 
            effective date.                                                    
                                                                               
            HB  271 was reported  out of Committee  with a "do                 
            pass" recommendation and  with a zero fiscal  note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development.                                                       
                                                                               
  HB 272    An Act extending the termination date of the Board                 
            of  Chiropractic Examiners;  and providing  for an                 
            effective date.                                                    
                                                                               
            HB  272 was reported  out of Committee  with a "do                 
            pass"  recommendation and with  a zero fiscal note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development.                                                       
                                                                               
  CONSENT AGENDA                                                               
                                                                               
  Representative Martin MOVED to  report the Consent  Calendar                 
  out of  Committee  with individual  recommendations.   There                 
  being NO OBJECTIONS, it was adopted.                                         
                                                                               
  HOUSE BILL 170                                                               
                                                                               
       "An Act extending the termination date of the Board  of                 
       Marine Pilots."                                                         
                                                                               
  HB  170  was reported  out  of  Committee with  a  "do pass"                 
                                                                               
                               12                                              
                                                                               
                                                                               
  recommendation and with a zero fiscal note by the Department                 
  of Commerce and Economic Development.                                        
                                                                               
  HOUSE BILL 268                                                               
                                                                               
       "An Act extending the termination  date of the Board of                 
       Dispensing Opticians;  and providing  for an  effective                 
       date."                                                                  
                                                                               
  HB  268  was reported  out  of  Committee with  a  "do pass"                 
  recommendation  and  a  zero  fiscal  by the  Department  of                 
  Commerce and Economic Development.                                           
                                                                               
  HOUSE BILL 270                                                               
                                                                               
       "An Act extending the termination date  of the Board of                 
       Examiners in Optometry; and  providing for an effective                 
       date."                                                                  
                                                                               
  HB  270  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Commerce and Economic Development.                                        
                                                                               
  HOUSE BILL 271                                                               
                                                                               
       "An Act extending the termination date of the  Board of                 
       Public  Accountancy;  and  providing for  an  effective                 
       date."                                                                  
                                                                               
  HB  271  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Commerce and Economic Development.                                        
                                                                               
  HOUSE BILL 272                                                               
                                                                               
       "An  Act extending the termination date of the Board of                 
       Chiropractic Examiners; and providing  for an effective                 
       date."                                                                  
                                                                               
  HB  272  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a  fiscal note by the Department  of                 
  Commerce and Economic Development.                                           
                                                                               
  HOUSE BILL 269                                                               
                                                                               
       "An Act making  special appropriations for  restoration                 
       projects relating to the Exxon Valdez oil spill and for                 
       oil spill  response  projects;  and  providing  for  an                 
       effective date."                                                        
                                                                               
  JEROME  SHELBY,  (teleconference),  MAYOR, CITY  OF  KODIAK,                 
  KODIAK, ALASKA,  noted his disappointment with  the proposed                 
                                                                               
                               13                                              
                                                                               
                                                                               
  legislation.  He  pointed out  that Kodiak experienced  over                 
  50% of  the damages  from the  oil spill  although they  are                 
  scheduled to receive  only 1% of  the restoration fund.   He                 
  urged the  Committee to find a  way to fund  Kodiak the $8.5                 
  million dollars.                                                             
                                                                               
  MARY MCBURNEY, (teleconference), EXECUTIVE DIRECTOR, CORDOVA                 
  DISTRICT  FISHERMEN UNITED  (CDFU),  CORDOVA, ALASKA,  noted                 
  that the proposed  legislation disregards  the needs of  the                 
  Cordova  Sound area.  She  would not support the legislation                 
  and would not support  using funds for the oil  spill ferry.                 
  He pointed  out that  HB 411, HB  10 and  SB 98  support the                 
  needs of the people and damage created by the oil spill.                     
                                                                               
  DAVE CRANE, (teleconference), MAYOR, CITY OF SEWARD, SEWARD,                 
  ALASKA, noted his support for the  proposed legislation.  He                 
  felt that the legislation provided  long range planning with                 
  inclusion of the Sea Life Center.                                            
                                                                               
  WAYNE CARPENTER, (teleconference), DIRECTOR,  SEWARD CHAMBER                 
  OF  COMMERCE,  SEWARD,  ALASKA,  noted  his support  of  the                 
  legislation.  He voiced the need for marine mammal  research                 
  rehabilitation which the bill would accommodate.                             
                                                                               
  NANCY   LETHCOE,    (teleconference),   PRESIDENT,    ALASKA                 
  WILDERNESS RECREATION & TOURISM ASSOCIATION (AWRTA), VALDEZ,                 
  ALASKA, questioned the  feasibility studies provided  by the                 
  proposed  legislation.   She noted  her support  for  SB 98,                 
  pointing out that funds would be used for restoration rather                 
  than construction projects.                                                  
  RONALD KUCZER, (teleconference), ASSISTANT  GENERAL MANAGER,                 
  MUNICIPAL LIGHT  AND  POWER,  ANCHORAGE,  ALASKA,  addressed                 
  Section VI of the proposed legislation.   He stated that the                 
  completed project  would double  the capacity  of the  sport                 
  fishery hatchery.  He added, Municipal Light and Power would                 
  support Section VI.                                                          
                                                                               
  JOHN FRENCH, (teleconference), DIRECTOR,  FISHERY INDUSTRIAL                 
  TECHNOLOGY CENTER,  KODIAK, ALASKA, commented  on Section  X                 
  which   would   enhance  development   of   fish  processing                 
  techniques.  Section X would directly affect the recovery of                 
  the   commercial   subsistence   and  recreational   fishery                 
  services.                                                                    
                                                                               
  Representative  Brown questioned  the feasibility  study and                 
  the additional  costs incurred by  the University  resulting                 
  from the  proposed expenditure.   Mr. French noted  that the                 
  overall project will  cost $15 -  $20 million dollars.   The                 
  project will involve finding "other" funding sources.                        
                                                                               
  BOBBY   POOL,   (teleconference),   DESIGN   AND   TECHNICAL                 
  DEVELOPMENT  AT  CAMBRIDGE   SEVEN  ASSOCIATES,   CAMBRIDGE,                 
                                                                               
                               14                                              
                                                                               
                                                                               
  MASSACHUSETTS,  commented  that  his company  is  the United                 
  States   premier   developer   of   environmental   cultural                 
  institutions.    He thought  the  facility would  be popular                 
  effecting the  economics in the region where  it is located.                 
  The facility would become a  self supporting institution and                 
  would provide an  increase to tourism  and at the same  time                 
  would be an  education research location for  marine animals                 
  in Alaska.                                                                   
                                                                               
  WILLARD  DUNHAM, CHAIRMAN  FOR  THE  SEWARD ASSOCIATION  FOR                 
  ADVANCEMENT OF  MARINE DEVELOPMENT (SAAMS),  SEWARD, ALASKA,                 
  provided  the  Committee  with a  handout,  ALASKA  SEA LIFE                 
  CENTER BUSINESS PLAN.  [Attachment #2].  He pointed out that                 
  the facility would be a self sustaining operational facility                 
  providing research rehabilitation for public education.                      
                                                                               
  DR.  A.J.  PAUL,  ASSISTANT  PROFESSOR  OF  MARINE  SCIENCE,                 
  UNIVERSITY OF  ALASKA - FAIRBANKS,  FAIRBANKS, ALASKA, urged                 
  the Committee to  support the Alaska  Sea Life project.   He                 
  provided the  Committee  with  Attachment  #1,  illustrating                 
  population decline to mammal sea  life since the oil  spill.                 
  He added,  the legislation  is widely  supported.   Research                 
  indicates that the facility would be a destination point for                 
  Alaskan visitors and tourists.                                               
                                                                               
  Representative Brown asked if it would be necessary  to have                 
  all  funding   obtained  before   the   conditions  of   the                 
  appropriation would  be met.   Mr.  Dunhan replied it  would                 
  not.    Financial liability  could  be demonstrated  with an                 
  allocation of  $12.5  million dollars.   To  fully fund  the                 
  project  will  cost $46  million  dollars.   The anticipated                 
  "other" funding sources are general foundations.  Mr. Dunham                 
  pointed out,  two hundred  and ten  thousand people  visited                 
  Seward last year.                                                            
                                                                               
  (Tape Change, HFC 93 - 100, Side 2).                                         
                                                                               
  MARY FORBES, (teleconference), AUTOBAHN  CONSERVATION CHAIR,                 
  KODIAK,  ALASKA,  stated  that  her  organization  does  not                 
  support the  proposed legislation, whereas, they  do support                 
  HB 10 and SB 98.                                                             
                                                                               
  ANN  TASTALINA,  (teleconference),  SUPERINTENDENT OF  FIORD                 
  NATIONAL   PARK,  SEWARD,  ALASKA,   noted  support  of  the                 
  legislation and the  Sea Life Center facility.   She pointed                 
  out that there is no place in Alaska to do research on dying                 
  birds and marine  animals.   Rehabilitation is an  important                 
  component for the State.                                                     
                                                                               
  ALAN  PHIPPS,   (teleconference),  ALASKA  CENTER   FOR  THE                 
  ENVIRONMENT, ANCHORAGE, ALASKA,  noted his support of  SB 98                 
  and HB 10.  He emphasized  that the proposed legislation has                 
                                                                               
                               15                                              
                                                                               
                                                                               
  no relationship between environment and restoration.                         
                                                                               
  NANCY  BIRD, (teleconference),  SELF, CORDOVA  CITY COUNCIL,                 
  CORDOVA,  ALASKA,  expressed disappointment  with  so little                 
  funding allocated to  the Prince William Sound  area through                 
  the  legislation.   She  added that  the  funds purpose  was                 
  clearly defined of which construction was not included.  She                 
  urged support of HB 10.                                                      
                                                                               
  CHIP  DENNERLEIN,  (teleconference),   COOK  INLET   REGION,                 
  SEWARD, ALASKA, noted his support  of the agreement with the                 
  State.                                                                       
                                                                               
  JACK BABCOTT, (teleconference), SELF, PRINCE WILLIAM  SOUND,                 
  CORDOVA, ALASKA,  advised that  HB 269  does not  affect the                 
  actual  oil  spill  impacted  areas  especially for  fishery                 
  related  projects.   He  urged the  Committee to  reject the                 
  proposed legislation.                                                        
                                                                               
  RAY ROLANDE,  AQUACULTURE SPECIALIST,  UNIVERSITY OF  ALASKA                 
  MARINE ADVISORY PROGRAM, ANCHORAGE, ALASKA, spoke in support                 
  of the portion of the bill which address the construction of                 
  shell fish hatcheries.  He pointed  out that Alaska does not                 
  have a facility to tap  research already classified by other                 
  organizations.    He  recommended the  area  be  expanded to                 
  include  the Kenai  Peninsula  and   added that  Alaska only                 
  needs one high quality hatchery facility.                                    
                                                                               
  DAVE DAISEY, VILLAGE DEVELOPMENT IN  PRINCE WILLIAM SOUND OF                 
  AQUACULTURE  PROJECTS  -  OYSTER FARMS,  ANCHORAGE,  ALASKA,                 
  pointed out that oyster development is a current resource to                 
  many  village  areas.   For these  programs  to work,  it is                 
  necessary that a hatchery provide a reliable supply of seed.                 
  Section V  provides the  necessary allocation  to operate  a                 
  hatchery  for three  to  five years  before  it can  sustain                 
  itself.  He urged the Committee's support.                                   
                                                                               
  Representative  Brown questioned  the overall  costs of  the                 
  program.    Mr.  Daisey  offered  to provide  the  Committee                 
  additional information.                                                      
                                                                               
  TYLER JONES, (teleconference), CITY MANAGER, CITY OF SEWARD,                 
  SEWARD,  ALASKA, stated  his  support  of  the  legislation,                 
  pointing out that it would provide a location  for research,                 
  rehabilitation  and education.  He added, the City of Seward                 
  has not received restoration funds to date.                                  
                                                                               
  CARL  BECKER,  (teleconference),   SELF,  CORDOVA,   ALASKA,                 
  testified against the  legislation.  Cordova supports  HB 10                 
  and  SB  98  and added  that  money  from  the Exxon  Valdez                 
  settlement   should  go  to   restitution  and   damages  of                 
  resources.                                                                   
                                                                               
                               16                                              
                                                                               
                                                                               
  DIANE MCBRIDE, (teleconference), SELF, HOMER, ALASKA,  asked                 
  that  Section  III  remain  in  the  legislation.    Habitat                 
  acquisition is important to the fisheries in Cook Inlet.                     
                                                                               
  KENNY  BLATCHFORD,  CHUGIAK  REGIONAL  RESOURCE  COMMISSION,                 
  SEWARD,  ALASKA,  spoke in  favor of  HB 269,  encouraging a                 
  change to the site consideration.  He asked that the Chugiak                 
  Region  and  Kenai  Peninsula  receive  funds  for  hatchery                 
  development.                                                                 
                                                                               
  Representative Brown  reiterated concern for the  total cost                 
  of the proposed project.  Mr.  Blatchford stated it would be                 
  $1.2 million dollars for  a portion of the facility.   There                 
  would  be  two separate  projects.   The  technical research                 
  facility would be administered by the Department of Fish and                 
  Game.   The hatchery would  be administered by  Mt. Marathon                 
  Native  Association.    Representative  Brown  asked  if the                 
  current language in the bill  would authorize the Department                 
  of Fish  and Game authority  to allocate the  project funds.                 
  Mr. Blatchford  stated that  language was  contained in  the                 
  original bill,  although through committee substitute it has                 
  been changed.                                                                
                                                                               
  MARGARET  BRANSON,  ALASKA  SHELLFISH  GROWERS  ASSOCIATION,                 
  JUNEAU, ALASKA, provided the  Committee with letters written                 
  to the Governor  addressing the growth in the  technical and                 
  shellfish hatcheries. [Attachment #5].                                       
                                                                               
  (Tape Change HFC 93-101, Side 1).                                            
                                                                               
  PENNY  OSFALT,  (teleconference),  SELF,   CORDOVA,  ALASKA,                 
  emphasized  HB  269  would be  unfair  legislation  to those                 
  living in Prince William  Sound.  She stated that HB  10 and                 
  SB 98 were more equitable to all communities affected by the                 
  spill.   She reiterated  that construction would  not be the                 
  appropriate use of the fund.                                                 
                                                                               
  DONNA  FISHER,  (teleconference),   MEMBER  OF  VALDEZ  CITY                 
  COUNCIL, VALDEZ, ALASKA, testified in opposition to the road                 
  construction recommended near Whittier.                                      
                                                                               
  Representative Brown requested backup  material for Sections                 
  intention of the  Exxon Valdez Council Board of  Trustees to                 
  provide  the  $25 million  dollars  to  make  up  the  total                 
  anticipated costs of $46 million dollars.                                    
                                                                               
  CHARLES COLE, ATTORNEY  GENERAL, DEPARTMENT  OF LAW,  stated                 
  that the                                                                     
  Council consisted of the Department of Commerce and Economic                 
  Development,  the  Department  of   Agriculture  -  federal,                 
                                                                               
                               17                                              
                                                                               
                                                                               
  Department of Natural Resources, Department of Environmental                 
  Conservation, and the Department of  Law.  The Trustees have                 
  not  yet  considered  the  application as  it  has  not been                 
  presented to date through the restoration team.                              
                                                                               
  Representative Brown  recommended that the  appropriation be                 
  conditioned until the entire balanced is obtained.  Co-Chair                 
  Larson asked if it would be a viable operation with  a $12.5                 
  million  dollar   appropriation.    Attorney   General  Cole                 
  recommended the matter be addressed by Seward residents.                     
                                                                               
  CARL  ROSIER, COMMISSIONER,  DEPARTMENT  OF  FISH AND  GAME,                 
  responded that less than $46 million dollars could provide a                 
  viable program, although he did not know at what level.                      
                                                                               
  CHRIS  GATES,  DIRECTOR, DIVISION  OF  ECONOMIC DEVELOPMENT,                 
  DEPARTMENT OF  LAW, stated that  funds will be  required for                 
  both  the financial feasibility study and the match grants.                  
                                                                               
                                                                               
  Representative  Brown  noted  her  concern  that  the  $12.5                 
  million dollars would not provide the necessary resources to                 
  finish the project.   She felt  that the proposal should  be                 
  conditioned to provide  assurance that State monies  are not                 
  the  only  funds to  carry the  project.   Dr.  Paul refuted                 
  Representative Brown's  suggestion stating that most  of the                 
  money would  come  from  the  National  Science  Foundation.                 
  Attorney  General  Cole  reminded  the  Committee  that  the                 
  Governor strongly supports the project.                                      
                                                                               
  JOHN  SANDOR,  COMMISSIONER,  DEPARTMENT   OF  ENVIRONMENTAL                 
  CONSERVATION, addressed  Section IV.  He stated there are no                 
  plans for the Visitor Center  although the proposal would be                 
  consistent with what  the Kachemak  Bay State Park  Citizens                 
  Advisory Board has recommended.   Representative Brown asked                 
  if  the board  had  specifically  considered  that  project.                 
  Commissioner Sandor replied they had not.                                    
                                                                               
  Representative Brown  asked if  the Department  of Fish  and                 
  Game  would  respond  to  the  operational costs  listed  in                 
  Section  V.   Commissioner  Rosier  indicated there  are two                 
  parts  to the project.  The proposal in HB 269 addresses the                 
  part  of  the  facility  which  would  be  operated  by  the                 
  Department.    Currently,  there is  a  proposal  before the                 
  trustees to fund  a private hatchery facility in  the Prince                 
  William Sound area.   The initial funding would require $300                 
  thousand dollars annual operational expense.                                 
                                                                               
  Representative Brown asked  how many  hatcheries can  Alaska                 
  support.  Commissioner Rosier noted that hatchery operations                 
  for the shell fish industry are limited.                                     
                                                                               
                                                                               
                               18                                              
                                                                               
                                                                               
  Co-Chair Larson questioned the $15 million dollar allocation                 
  for design and construction of the Whittier access road.                     
                                                                               
  BRUCE   CAMPBELL,   ACTING   COMMISSIONER,   DEPARTMENT   OF                 
  TRANSPORTATION  AND  PUBLIC  FACILITIES,  replied  that  the                 
  environmental impact of  the Whittier access  road currently                 
  is being studied from federal funds.   Concluding the study,                 
  a  location determination  will  be made.   The  $15 million                 
  dollars will be  used to  expedite environmental studies  if                 
  the road is  not built.  There will be no construction money                 
  requested.   Representative  Martin  recommended adding  the                 
  language "and match" to the $15 million dollar request.                      
                                                                               
  Representative  Brown  asked  the total  cost  of  the road.                 
  Acting Commissioner Campbell  noted that  cost could not  be                 
  estimated.  Representative Brown asked if the balance of the                 
  cost  would  be  a  federal  expense.   Acting  Commissioner                 
  Campbell stated that  it could be funded with  federal funds                 
  and offered to provide the data requested.                                   
                                                                               
  Attorney  General  Cole   provided  the  Committee  with   a                 
  comparison of HB  411 (SB  483), HB  10, SB 98  and HB  269.                 
  [Attachment  #6].    He urged  the  Committee  to  adopt the                 
  proposal provided by the Governor.                                           
                                                                               
  (Tape Change, HFC 93-101, Side 2).                                           
                                                                               
  Co-Chair  Larson  pointed  out that  the  $5  million dollar                 
  allocation  for  the oil  spill  ferry  would no  longer  be                 
  necessary in the proposed legislation.                                       
                                                                               
  HB 269 was HELD in Committee for further consideration.                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:50 P.M.                                           
                                                                               
                                                                               
                               19                                              

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