Legislature(1993 - 1994)

05/03/1994 08:35 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                           May 3, 1994                                         
                            8:35 A.M.                                          
                                                                               
  TAPE HFC 94 - 153, Side 1, #000 - end.                                       
  TAPE HFC 94 - 153, Side 2, #000 - end.                                       
  TAPE HFC 94 - 154, Side 1, #000 - #171.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House Finance  Committee meeting                 
  to order at 8:35 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Foster                          
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
                                                                               
  Representative Navarre was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Carl  Moses;  Representative Harley  Olberg;                 
  Laura Glasier, Administrative Code  Coordinator, Division of                 
  Elections, Office of the Lt. Governor; Mark Boyer, Fairbanks                 
  City  Manager,  Fairbanks;   Chris  Rose,  Co-Chair,  Alaska                 
  Citizens for Responsible Energy Development (ACRED), Sutton,                 
  Alaska;  Jim Ayers,  Executive  Director, Exxon  Valdez  Oil                 
  Spill  Trustee  Counsel,  Department of  Transportation  and                 
  Public   Facilities;   Bob  Poe,   Director,  Administrative                 
  Services, Department of  Environmental Conservation;  Shelby                 
  Stastny, Director, Office of  Management and Budget,  Office                 
  of  the  Governor;  Mead   Treadwell,  Deputy  Commissioner,                 
  Department  of  Environmental  Conservation;  Nancy  Slagle,                 
  Director, Division  of Budget Review,  Office of  Management                 
  and Budget.                                                                  
                                                                               
  SUMMARY                                                                      
  SB 303    An  Act  relating  to  voter  eligibility,   voter                 
            registration, and voter registration agencies; and                 
            providing for an effective date.                                   
                                                                               
            HCS SB  303 (FIN)  was reported  out of  Committee                 
            with a "do  pass" recommendation  and with  fiscal                 
            notes  by the  Department of  Public  Safety dated                 
            2/11/94, the Office of the Governor dated 2/11/94,                 
            the Department of Health and Social Services notes                 
                                                                               
                                1                                              
                                                                               
                                                                               
            dated 2/11/94  and the Department of Community and                 
            Regional  Affairs dated  2/11/94  and zero  fiscal                 
            notes by the Department of Education dated 2/11/94                 
            and the Department of Revenue dated 3/02/94.                       
  HB 455    An Act making  and amending operating  and capital                 
            appropriations   and   ratifying   certain   state                 
            expenditures; and providing for an effective date.                 
                                                                               
            HB  455   was  HELD   in  Committee   for  further                 
            consideration.                                                     
  SENATE BILL 303                                                              
                                                                               
       "An   Act   relating   to  voter   eligibility,   voter                 
  registration, and   voter    registration    agencies;   and                 
  providing for an effective    date."                                         
                                                                               
  LAURA GLASIER, ADMINISTRATIVE CODE  COORDINATOR, DIVISION OF                 
  ELECTIONS, OFFICE OF  THE LT.  GOVERNOR, explained that  the                 
  National Voter Registration  Act (NVRA) of 1993  had imposed                 
  certain requirements on states  regarding the procedures  to                 
  register  to   vote   in  elections   for  federal   office.                 
  Legislation  is  needed in  order  to designate  an election                 
  official  responsible  for   coordination  of  the   State's                 
  responsibilities  under the NVRA.  Alaska  does not meet the                 
  requirements of the nonapplicability clause.                                 
                                                                               
  Representative Martin provided the Committee  with a copy of                 
  Amendment #1 which would allow voters to apply by electronic                 
  transmission to the director for an absentee ballot.   [Copy                 
  on file].                                                                    
                                                                               
  Representative Parnell asked if registration by transmission                 
  had been part  of a previous  bill submitted to the  Senate.                 
  Representative  Martin replied  that the  proposed amendment                 
  for this  legislation applied  only to  the absentee  ballot                 
  differing  from   the  other  legislation   which  requested                 
  electronic  voting  rights.     Representative  Brown  noted                 
  reservations  to include  the  amendment  given past  action                 
  taken by the Senate to similar legislation.                                  
                                                                               
  Representative Brown  questioned also if the amendment would                 
  fit into the legislation's title.   She pointed out that the                 
  amendment   was  not   related  to   voter  eligibility   or                 
  registration.    Representative  Martin  stressed  that  the                 
  amendment  would  enhance  federal law.    Co-Chair  MacLean                 
  reenforced  that  the  amendment did  not  conform  with the                 
  proposed legislation.                                                        
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
       IN FAVOR:      Parnell,       Therriault,       Foster,                 
                      Grussendorf,  Hanley,  Hoffman,  Martin,                 
                      Larson.                                                  
       OPPOSED:       MacLean, Brown.                                          
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (8-2).                                                     
                                                                               
  Representative  Martin MOVED to report  HCS CS 303 (FIN) out                 
  of Committee  with individual recommendations  and with  the                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  HCS SB  303 (FIN) was reported  out of Committee  with a "do                 
  pass" recommendation and with fiscal notes by the Department                 
  of  Public Safety dated 2/11/94, the  Office of the Governor                 
  dated  2/11/94, the  Department  of Community  and  Regional                 
  Affairs dated 2/11/94,  and three notes by the Department of                 
  Health and  Social Services  dated 2/11/94  and zero  fiscal                 
  notes by the Department of  Education dated 2/11/94 and  the                 
  Department of Revenue dated 3/02/94.                                         
  HOUSE BILL 455                                                               
                                                                               
       "An  Act  making  and amending  operating  and  capital                 
       appropriations    and    ratifying     certain    state                 
       expenditures; and providing for an effective date."                     
                                                                               
  Section 11                                                                   
                                                                               
  There being NO OBJECTION, Section #11 was adopted.                           
                                                                               
  Section 10                                                                   
                                                                               
  There being NO OBJECTION, Section #10 was adopted.                           
                                                                               
  Section 44                                                                   
                                                                               
  There being NO OBJECTION, Section #42 was adopted.                           
                                                                               
  Section #45-#48                                                              
                                                                               
  There being NO OBJECTIONS, Sections #45-#48 were adopted.                    
                                                                               
  Amendment #4                                                                 
                                                                               
  Co-Chair MacLean expounded that the original amendment would                 
  not provide for the  transfer of funds to the  general fund.                 
  The new language provided in Amendment #4 would clarify that                 
  the  original  amendment   was  meant  to  be   a  net  zero                 
  transaction.                                                                 
                                                                               
                                3                                              
                                                                               
                                                                               
  Section  #1 currently  does not  allow for  the transfer  of                 
  funds   from  the   Education  Facilities   Maintenance  and                 
  Construction Fund to the general fund.  The amendment  would                 
  address  that  situation.    She  added  that  the  original                 
  amendment was flawed in that it made two appropriations from                 
  the same fund.                                                               
                                                                               
  Co-Chair MacLean MOVED  to adopt the new Amendment  #4 which                 
  would make a  single appropriation from the  funding source.                 
  Representative  Brown   interjected  that  there   would  be                 
  fourteen  appropriations.   Representative  Hanley clarified                 
  that the new amendment would eliminate Section #1.  Co-Chair                 
  MacLean stressed  that the amendment would create a net zero                 
  transaction.  There  being NO OBJECTIONS, the  new Amendment                 
                                                                               
  Amendment #10                                                                
                                                                               
  Co-Chair MacLean  WITHDREW Amendment  #10.   There being  NO                 
  OBJECTION, it was withdrawn.                                                 
                                                                               
  Amendment #11                                                                
                                                                               
  JIM  AYERS,  EXECUTIVE  DIRECTOR,  EXXON  VALDEZ  OIL  SPILL                 
  TRUSTEE  COUNCIL, DEPARTMENT  OF  TRANSPORTATION AND  PUBLIC                 
  FACILITIES, explained that  Section #2, Chapter 41,  SLA 93,                 
  the  Alyeska  settlement  funds  appropriated $14.5  million                 
  dollars for docks  and facilities  in Tatitlik and  Chenega.                 
  That appropriation was made with  the understanding and need                 
  for the acquisition of oil spill response capability as well                 
  as providing those  communities with  docks.  Subsequent  to                 
  that, there  was money from  the restitution of  Exxon funds                 
  that were appropriated for  a variety of projects.   Both of                 
  the funds would be subject to  court order and would require                 
  that  those funds not be considered as general fund dollars.                 
  They  must be appropriated for  the purposes outlined in the                 
  settlement.                                                                  
                                                                               
  He added that  Section 7, Chapter  79 would appropriate  the                 
  interest earned on the  $50 million dollars up to  July 1st,                 
  1994.  The  amendment proposes  to appropriate the  interest                 
  earned in  a restitution  fund which  must be  used for  the                 
  purposes defined in  the court decree for  the establishment                 
  of maintenance and improvement fund for those two docks.                     
                                                                               
  Mr. Ayers  added that the  federal government would  have no                 
  authority  in  the  amendment  except by  court  order.   He                 
  emphasized that it  was not within  the jurisdiction of  the                 
  federal government  to inform the  state how to  spend their                 
  share  of the  restitutional funds,  except as  a matter  of                 
  justice.   Representative  Martin felt  the amendment  would                 
                                                                               
                                4                                              
                                                                               
                                                                               
  require further scrutiny.                                                    
                                                                               
  Representative   Foster  MOVED   to  adopt   Amendment  #11.                 
  Representative  Brown  asked  how  long  it  would  take  to                 
  accumulate  the necessary  funds and  if that  appropriation                 
  would be continuing.  Mr.  Ayers understood that $40 million                 
  dollars remained in the balance of that account and that the                 
  amount would be  a capital  and continuing appropriation  to                 
  DOTPF.                                                                       
                                                                               
  Representative  Brown MOVED  to  include Amendment  11  into                 
  Section  #60, which would  place it in  the capital projects                 
  section  of the  legislation.  Mr.  Ayers agreed.   Co-Chair                 
  MacLean OBJECTED.                                                            
                                                                               
  A roll call  vote was taken on  the MOTION to include  it in                 
  Section 60.                                                                  
                                                                               
       IN FAVOR:      Brown, Foster, Hanley, Hoffman, Martin.                  
       OPPOSED:       Parnell,     Therriault,    Grussendorf,                 
                      MacLean, Larson.                                         
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative Martin OBJECTED to Amendment #11.                             
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Therriault, Brown, Foster,  Grussendorf,                 
                      Hanley,   Hoffman,    Parnell,   Larson,                 
                      MacLean.                                                 
       OPPOSED:       Martin.                                                  
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  Amendment #12                                                                
                                                                               
  MEAD   TREADWELL,   DEPUTY   COMMISSIONER,   DEPARTMENT   OF                 
  ENVIRONMENTAL CONSERVATION (DEC), summarized  Amendment #12,                 
  a  request for  $250  thousand dollars  which would  cover a                 
  commitment made  last year  placing regional  governments in                 
  the arctic and monitoring the network against radionuclides.                 
                                                                               
                                                                               
  Representative Hanley asked  that a complete budget  of that                 
  program be provided to the Committee.  Mr. Treadwell briefed                 
  the Committee explaining  that the  project would work  with                 
  the  Alaska  Air  Space   Development  Corporation  and  the                 
                                                                               
                                5                                              
                                                                               
                                                                               
  University of Alaska in order to provide the capabilities in                 
  cooperation with federal projects currently underway.                        
                                                                               
  (Tape Change, HFC 94-153, Side 2).                                           
                                                                               
  Representative  Hoffman   MOVED  to  adopt   Amendment  #12.                 
  Representative  Parnell  MOVED  TO  AMEND Amendment  #12  by                 
  reducing the  amount appropriated from $250 thousand dollars                 
  to $100 thousand dollars.  Representative Brown OBJECTED.                    
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Foster,  Grussendorf,  Hanley,  Hoffman,                 
                      Martin,  Parnell,   Therriault,  Larson,                 
                      MacLean.                                                 
       OPPOSED:       Brown.                                                   
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  A roll call vote was taken  on the MOTION to adopt Amendment                 
                                                                               
       IN FAVOR:      Hanley,    Hoffman,    Parnell,   Brown,                 
                      MacLean.                                                 
       OPPOSED:       Foster,   Hanley,  Martin,   Therriault,                 
                      Larson.                                                  
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Amendment #13                                                                
                                                                               
  Representative  Grussendorf  MOVED  to adopt  Amendment  #13                 
  which would provide the sum of  $100 thousand dollars to the                 
  City of Wrangell  as a grant  for the Zimovia Highway  water                 
  and sewer  laterals.   There  being  NO OBJECTIONS,  it  was                 
  adopted.                                                                     
                                                                               
  Amendment #8                                                                 
                                                                               
  Representative Grussendorf MOVED to adopt Amendment #8 which                 
  would address concerns with the Alaska Pulp Corporation mill                 
  and forgiveness  of the  interest due  on that  loan to  the                 
  State.  Representative Martin OBJECTED.                                      
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Grussendorf,  Hoffman,   Brown,  Foster,                 
                      Larson, MacLean.                                         
                                                                               
                                6                                              
                                                                               
                                                                               
       OPPOSED:       Hanley, Martin, Parnell, Therriault.                     
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Section #11 & Amendment #14                                                  
                                                                               
  Representative Hanley discussed  Section #11's  relationship                 
  to the Department of Health and Social Services as a request                 
  for expenditures  of federal funding  received for  services                 
  provided  to  Medicaid  recipients.   Representative  Hanley                 
  explained that he had worked with Senator Rieger, the Senate                 
  HESS  Chair,  and  that they  both  had  concerns  with that                 
  request.                                                                     
                                                                               
  Representative Hanley MOVED to  incorporate Amendment #14 to                 
  Section #11.  There being NO OBJECTION, it was adopted.                      
                                                                               
  Section #42 & Amendment #15                                                  
                                                                               
  Representative  Therriault  pointed out  a  technical change                 
  needed in Amendment #15 which  would insert "Regional" after                 
  "Fairbanks" and would  then request funds for  two water and                 
  sewer projects in Fairbanks.                                                 
                                                                               
  BOB  POE,  DIRECTOR,  DIVISION OF  ADMINISTRATION  SERVICES,                 
  DEPARTMENT OF  ENVIRONMENTAL CONSERVATION,  stated that  the                 
  situation in question was an  eleven year old appropriation.                 
  At the  time of the request, it  was unclear if the projects                 
  were discretionary or a "Governor's requested".                              
                                                                               
  He  added   that  a   letter  had   been  received   by  the                 
  Environmental  Protection  Agency  (EPA)  informing  DEC  to                 
  immediately take steps to upgrade the lab for drinking water                 
  tests.  If  this measure was not completed  immediately, the                 
  DEC  lab would become decertified  for water testing.  There                 
  are  only  twelve  laboratories  in  Alaska, nine  of  which                 
  certify public  drinking  water systems.   All  of the  nine                 
  depend on DEC's certification authority.                                     
                                                                               
  Representative  Therriault  MOVED  to adopt  Amendment  #15.                 
  Representative Brown OBJECTED.                                               
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Martin,  Parnell,   Therriault,  Foster,                 
                      Larson.                                                  
       OPPOSED:       Hanley, Brown, Grussendorf, MacLean.                     
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
                                7                                              
                                                                               
                                                                               
  The MOTION PASSED (5-4).                                                     
                                                                               
  SUPPLEMENTAL BUDGET                                                          
                                                                               
  Co-Chair  MacLean MOVED  to incorporate  the reappropriation                 
  recommendations into the  supplemental budget.  There  being                 
  NO OBJECTION, it was adopted.                                                
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND  BUDGET, OFFICE OF  THE GOVERNOR,  referenced                 
  Page  2,  Section 9  (d)  of  the work  draft  dated 5/02/94                 
  indicating an allocation  resulting from a  legal settlement                 
  with  the  Department  of  Environmental  Conservation   and                 
  addressing the waste  water disposal proposal.   There being                 
  NO OBJECTIONS to the changes recommended by Ms. Slagle, they                 
  were adopted.                                                                
                                                                               
  Section #56 & #57                                                            
                                                                               
  Representative Martin noted  that Section #56 would  provide                 
  funds  for  an emergency  structural  roof repair  to Aurora                 
  Elementary School, Anchorage for fiscal year ending June 30,                 
  1994.                                                                        
                                                                               
  Co-Chair  MacLean MOVED  to  adopt  work draft  #8-GH2040\J,                 
  Cramer\Utermohle,  dated 5/02/94  as the version  before the                 
  Committee.  There being NO OBJECTION, it was adopted.                        
                                                                               
  Representative Martin MOVED to incorporate Section  #56 into                 
  CS HB 455  (FIN).  Representative  Brown mentioned that  the                 
  federal government should be liable for the repairs proposed                 
  in  Sections  #56  & #57.    There  being  NO OBJECTIONS  to                 
  adopting Sections #56 & #57, they were adopted.                              
                                                                               
  Intertie - CVEA                                                              
                                                                               
  Representative  Brown   provided  the   Committee  with   an                 
  Amendment  addressing concerns  with  the proposed  intertie                 
  versus the Allison Lake power options.                                       
                                                                               
  CHRIS ROSE, CO-CHAIR, ALASKA CITIZENS FOR RESPONSIBLE ENERGY                 
  DEVELOPMENT  (ACRED), SUTTON,  explained  that  ACRED  is  a                 
  citizens group formed to address the particular issue of the                 
  proposed  intertie in  the Glennallen  &  Sutton areas.   He                 
  explained that  last year, the  Legislature appropriated $35                 
  million   dollars  for   the  project   contingent  upon   a                 
  feasibility study.                                                           
                                                                               
  Mr.  Rose  provided  background  information  on  the  final                 
  feasibility  study for the  Sutton-Glennallen intertie.  The                 
  study found that Allison Lake would  be a better alternative                 
                                                                               
                                8                                              
                                                                               
                                                                               
  to  the   intertie  for  meeting  Copper  Valley  Electrical                 
  Association's  (CVEA) needs.   Given that information, ACRED                 
  urged  Committee  members  to  reconsider  funding  for  the                 
  intertie.                                                                    
                                                                               
  REPRESENTATIVE  HARLEY OLBERG warned that ACRED is concerned                 
  with the ascetic appearance  of the project.  He  added that                 
  the Allison Lake project would cost $32 million  dollars and                 
  would produce 10%  percent of the power passing  through the                 
  intertie.   The project at  Allison Lake would face problems                 
  with  water  turbidity.    He voiced  his  support  for  the                 
  original project.                                                            
                                                                               
  Representative Brown asked if Representative Olberg had read                 
  the   feasibility   study   provided   for   the   intertie.                 
  Representative Olberg stated  he had  not and  did not  have                 
  100% faith in such a study.                                                  
                                                                               
  (Tape Change, HFC 94-154, Side 1).                                           
                                                                               
  Representative   Brown  MOVED   to   adopt  the   amendment.                 
  Representative Martin OBJECTED.                                              
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Larson.                              
       OPPOSED:       Hoffman,  Martin,  Parnell,  Therriault,                 
                      Foster, Hanley, MacLean.                                 
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Amendment #16                                                                
                                                                               
  Representative  Brown  MOVED  to adopt  Amendment  #16 which                 
  would repeal the  $15 million dollar appropriation  made for                 
  the  construction  of  the Whittier  Road.    Representative                 
  Foster OBJECTED.                                                             
                                                                               
  Representative Brown's motion was HELD  pending for the next                 
  Committee meeting.                                                           
                                                                               
  Section #47                                                                  
                                                                               
  Ms. Slagle requested a technical  language change to Section                 
  to pay grievance awards  but instead to cover the  costs for                 
  investigations.  Co-Chair Larson MOVED to amend Section #47.                 
  There  being  NO  OBJECTION,  the  language was  changed  to                 
  reflect this use for the appropriation.                                      
                                                                               
                                                                               
                                9                                              
                                                                               
                                                                               
  HB 455 was HELD in Committee for further consideration.                      
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:10 A.M.                                          
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                           May 3, 1994                                         
                            8:35 A.M.                                          
                                                                               
  TAPE HFC 94 - 153, Side 1, #000 - end.                                       
  TAPE HFC 94 - 153, Side 2, #000 - end.                                       
  TAPE HFC 94 - 154, Side 1, #000 - #171.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House  Finance Committee meeting                 
  to order at 8:35 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Foster                          
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
                                                                               
  Representative Navarre was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Carl  Moses;  Representative Harley  Olberg;                 
  Laura Glasier, Administrative Code  Coordinator, Division of                 
  Elections, Office of the Lt. Governor; Mark Boyer, Fairbanks                 
  City  Manager,  Fairbanks;   Chris  Rose,  Co-Chair,  Alaska                 
  Citizens for Responsible Energy Development (ACRED), Sutton,                 
  Alaska;  Jim Ayers,  Executive  Director,  Exxon Valdez  Oil                 
  Spill  Trustee  Counsel,  Department of  Transportation  and                 
  Public   Facilities;   Bob  Poe,   Director,  Administrative                 
  Services, Department of  Environmental Conservation;  Shelby                 
  Stastny, Director, Office  of Management and Budget,  Office                 
  of  the  Governor;  Mead   Treadwell,  Deputy  Commissioner,                 
  Department  of  Environmental  Conservation;  Nancy  Slagle,                 
  Director, Division  of Budget  Review, Office  of Management                 
  and Budget.                                                                  
                                                                               
  SUMMARY                                                                      
                                                                               
  SB 303    An  Act  relating  to  voter  eligibility,   voter                 
            registration, and voter registration agencies; and                 
            providing for an effective date.                                   
                                                                               
                               10                                              
                                                                               
                                                                               
            HCS SB  303 (FIN)  was reported  out of  Committee                 
            with a  "do pass"  recommendation and  with fiscal                 
            notes  by the  Department  of Public  Safety dated                 
            2/11/94, the Office of the Governor dated 2/11/94,                 
            the Department of Health and Social Services notes                 
            dated 2/11/94 and the Department  of Community and                 
            Regional  Affairs dated  2/11/94  and zero  fiscal                 
            notes by the Department of Education dated 2/11/94                 
            and the Department of Revenue dated 3/02/94.                       
                                                                               
  HB 455    An Act  making and amending operating  and capital                 
            appropriations   and   ratifying   certain   state                 
            expenditures; and providing for an effective date.                 
                                                                               
            HB   455  was  HELD   in  Committee   for  further                 
            consideration.                                                     
                                                                               
  SENATE BILL 303                                                              
                                                                               
       "An   Act   relating   to  voter   eligibility,   voter                 
  registration, and   voter    registration    agencies;   and                 
  providing for an effective    date."                                         
                                                                               
  LAURA GLASIER, ADMINISTRATIVE CODE  COORDINATOR, DIVISION OF                 
  ELECTIONS, OFFICE OF  THE LT.  GOVERNOR, explained that  the                 
  National Voter Registration  Act (NVRA) of 1993  had imposed                 
  certain requirements on  states regarding the procedures  to                 
  register   to  vote   in  elections   for   federal  office.                 
  Legislation  is  needed in  order  to designate  an election                 
  official  responsible  for   coordination  of  the   State's                 
  responsibilities under the NVRA.   Alaska does not meet  the                 
  requirements of the nonapplicability clause.                                 
                                                                               
  Representative Martin provided the Committee  with a copy of                 
  Amendment #1 which would allow voters to apply by electronic                 
  transmission to the  director for an absentee ballot.  [Copy                 
  on file].                                                                    
                                                                               
  Representative Parnell asked if registration by transmission                 
  had been part  of a previous  bill submitted to the  Senate.                 
  Representative  Martin replied  that the  proposed amendment                 
  for this  legislation applied  only to  the absentee  ballot                 
  differing  from   the  other  legislation   which  requested                 
  electronic  voting  rights.     Representative  Brown  noted                 
  reservations  to include  the  amendment given  past  action                 
  taken by the Senate to similar legislation.                                  
                                                                               
  Representative Brown questioned also if  the amendment would                 
  fit into the legislation's title.   She pointed out that the                 
  amendment  was   not   related  to   voter  eligibility   or                 
  registration.    Representative  Martin  stressed  that  the                 
                                                                               
                               11                                              
                                                                               
                                                                               
  amendment  would enhance  federal  law.    Co-Chair  MacLean                 
  reenforced  that  the  amendment did  not  conform  with the                 
  proposed legislation.                                                        
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Parnell,       Therriault,       Foster,                 
                      Grussendorf,  Hanley,  Hoffman,  Martin,                 
                      Larson.                                                  
       OPPOSED:       MacLean, Brown.                                          
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (8-2).                                                     
                                                                               
  Representative Martin MOVED to  report HCS CS 303  (FIN) out                 
  of Committee  with individual  recommendations and  with the                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  HCS SB 303  (FIN) was reported out  of Committee with  a "do                 
  pass" recommendation and with fiscal notes by the Department                 
  of Public Safety dated  2/11/94, the Office of the  Governor                 
  dated  2/11/94, the  Department  of  Community and  Regional                 
  Affairs dated 2/11/94, and three notes  by the Department of                 
  Health and  Social Services  dated 2/11/94  and zero  fiscal                 
  notes by the  Department of Education dated 2/11/94  and the                 
  Department of Revenue dated 3/02/94.                                         
                                                                               
  HOUSE BILL 455                                                               
                                                                               
       "An  Act  making  and  amending  operating  and capital                 
       appropriations    and    ratifying     certain    state                 
       expenditures; and providing for an effective date."                     
                                                                               
  Section 11                                                                   
                                                                               
  There being NO OBJECTION, Section #11 was adopted.                           
                                                                               
  Section 10                                                                   
                                                                               
  There being NO OBJECTION, Section #10 was adopted.                           
                                                                               
  Section 44                                                                   
                                                                               
  There being NO OBJECTION, Section #42 was adopted.                           
                                                                               
  Section #45-#48                                                              
                                                                               
  There being NO OBJECTIONS, Sections #45-#48 were adopted.                    
                                                                               
  Amendment #4                                                                 
                                                                               
                               12                                              
                                                                               
                                                                               
  Co-Chair MacLean expounded that the original amendment would                 
  not provide for the  transfer of funds to the  general fund.                 
  The new language provided in Amendment #4 would clarify that                 
  the  original  amendment  was   meant  to  be  a  net   zero                 
  transaction.                                                                 
                                                                               
  Section  #1 currently  does  not allow  for the  transfer of                 
  funds   from  the   Education  Facilities   Maintenance  and                 
  Construction Fund to  the general fund.  The amendment would                 
  address  that  situation.    She  added  that  the  original                 
  amendment was flawed in that it made two appropriations from                 
  the same fund.                                                               
                                                                               
  Co-Chair MacLean MOVED  to adopt the new  Amendment #4 which                 
  would make a  single appropriation from the  funding source.                 
  Representative  Brown   interjected  that  there   would  be                 
  fourteen  appropriations.   Representative  Hanley clarified                 
  that the new amendment would eliminate Section #1.  Co-Chair                 
  MacLean stressed that the amendment  would create a net zero                 
  transaction.  There  being NO OBJECTIONS, the  new Amendment                 
                                                                               
  Amendment #10                                                                
                                                                               
  Co-Chair MacLean  WITHDREW Amendment  #10.   There being  NO                 
  OBJECTION, it was withdrawn.                                                 
                                                                               
  Amendment #11                                                                
                                                                               
  JIM  AYERS,  EXECUTIVE  DIRECTOR,  EXXON  VALDEZ  OIL  SPILL                 
  TRUSTEE  COUNCIL, DEPARTMENT  OF  TRANSPORTATION AND  PUBLIC                 
  FACILITIES, explained that  Section #2, Chapter 41,  SLA 93,                 
  the  Alyeska  settlement  funds  appropriated $14.5  million                 
  dollars for docks  and facilities  in Tatitlik and  Chenega.                 
  That appropriation was made with  the understanding and need                 
  for the acquisition of oil spill response capability as well                 
  as providing those  communities with  docks.  Subsequent  to                 
  that,  there was money  from the restitution  of Exxon funds                 
  that were appropriated for  a variety of projects.   Both of                 
  the funds would be subject to  court order and would require                 
  that those funds not be  considered as general fund dollars.                 
  They must be appropriated  for the purposes outlined  in the                 
  settlement.                                                                  
                                                                               
  He added that  Section 7, Chapter  79 would appropriate  the                 
  interest earned on the  $50 million dollars up to  July 1st,                 
  1994.  The  amendment proposes  to appropriate the  interest                 
  earned in  a restitution  fund which  must be  used for  the                 
  purposes defined in  the court decree for  the establishment                 
  of maintenance and improvement fund for those two docks.                     
                                                                               
                                                                               
                               13                                              
                                                                               
                                                                               
  Mr. Ayers added  that the federal  government would have  no                 
  authority  in  the amendment  except  by  court order.    He                 
  emphasized  that it was  not within the  jurisdiction of the                 
  federal government to  inform the state  how to spend  their                 
  share of  the restitutional  funds, except  as  a matter  of                 
  justice.   Representative Martin  felt  the amendment  would                 
  require further scrutiny.                                                    
                                                                               
  Representative   Foster  MOVED   to  adopt   Amendment  #11.                 
  Representative  Brown  asked  how  long  it  would  take  to                 
  accumulate  the necessary  funds  and if  that appropriation                 
  would be continuing.  Mr. Ayers understood  that $40 million                 
  dollars remained in the balance of that account and that the                 
  amount would be  a capital  and continuing appropriation  to                 
  DOTPF.                                                                       
                                                                               
  Representative  Brown MOVED  to  include  Amendment 11  into                 
  Section  #60, which would  place it in  the capital projects                 
  section of  the legislation.   Mr.  Ayers agreed.   Co-Chair                 
  MacLean OBJECTED.                                                            
                                                                               
  A roll call  vote was taken on  the MOTION to include  it in                 
  Section 60.                                                                  
                                                                               
       IN FAVOR:      Brown, Foster, Hanley, Hoffman, Martin.                  
       OPPOSED:       Parnell,     Therriault,    Grussendorf,                 
                      MacLean, Larson.                                         
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative Martin OBJECTED to Amendment #11.                             
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Therriault, Brown, Foster,  Grussendorf,                 
                      Hanley,   Hoffman,    Parnell,   Larson,                 
                      MacLean.                                                 
       OPPOSED:       Martin.                                                  
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  Amendment #12                                                                
                                                                               
  MEAD   TREADWELL,   DEPUTY   COMMISSIONER,   DEPARTMENT   OF                 
  ENVIRONMENTAL CONSERVATION (DEC), summarized  Amendment #12,                 
  a request  for $250  thousand dollars  which  would cover  a                 
  commitment  made last year  placing regional  governments in                 
  the arctic and monitoring the network against radionuclides.                 
                                                                               
                               14                                              
                                                                               
                                                                               
  Representative Hanley asked  that a complete budget  of that                 
  program be provided to the Committee.  Mr. Treadwell briefed                 
  the Committee explaining  that the  project would work  with                 
  the   Alaska  Air  Space  Development  Corporation  and  the                 
  University of Alaska in order to provide the capabilities in                 
  cooperation with federal projects currently underway.                        
                                                                               
  (Tape Change, HFC 94-153, Side 2).                                           
                                                                               
  Representative  Hoffman   MOVED  to  adopt   Amendment  #12.                 
  Representative Parnell  MOVED  TO  AMEND  Amendment  #12  by                 
  reducing the amount appropriated from  $250 thousand dollars                 
  to $100 thousand dollars.  Representative Brown OBJECTED.                    
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Foster,  Grussendorf,  Hanley,  Hoffman,                 
                      Martin,  Parnell,   Therriault,  Larson,                 
                      MacLean.                                                 
       OPPOSED:       Brown.                                                   
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  A roll call vote was taken  on the MOTION to adopt Amendment                 
                                                                               
       IN FAVOR:      Hanley,    Hoffman,    Parnell,   Brown,                 
                      MacLean.                                                 
       OPPOSED:       Foster,   Hanley,  Martin,   Therriault,                 
                      Larson.                                                  
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Amendment #13                                                                
                                                                               
  Representative  Grussendorf  MOVED  to adopt  Amendment  #13                 
  which would provide the sum of  $100 thousand dollars to the                 
  City of Wrangell  as a grant  for the Zimovia Highway  water                 
  and sewer  laterals.   There  being  NO OBJECTIONS,  it  was                 
  adopted.                                                                     
                                                                               
  Amendment #8                                                                 
                                                                               
  Representative Grussendorf MOVED to adopt Amendment #8 which                 
  would address concerns with the Alaska Pulp Corporation mill                 
  and forgiveness  of the  interest due  on that  loan to  the                 
                                                                               
                               15                                              
                                                                               
                                                                               
  State.  Representative Martin OBJECTED.                                      
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Grussendorf,  Hoffman,   Brown,  Foster,                 
                      Larson, MacLean.                                         
       OPPOSED:       Hanley, Martin, Parnell, Therriault.                     
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Section #11 & Amendment #14                                                  
                                                                               
  Representative Hanley discussed  Section #11's  relationship                 
  to the Department of Health and Social Services as a request                 
  for expenditures  of federal  funding received  for services                 
  provided  to  Medicaid  recipients.   Representative  Hanley                 
  explained that he had worked with Senator Rieger, the Senate                 
  HESS  Chair,  and that  they  both  had concerns  with  that                 
  request.                                                                     
                                                                               
  Representative Hanley MOVED to incorporate Amendment  #14 to                 
  Section #11.  There being NO OBJECTION, it was adopted.                      
                                                                               
  Section #42 & Amendment #15                                                  
                                                                               
  Representative  Therriault  pointed out  a  technical change                 
  needed in Amendment #15 which  would insert "Regional" after                 
  "Fairbanks" and would then request  funds for two water  and                 
  sewer projects in Fairbanks.                                                 
                                                                               
  BOB  POE,  DIRECTOR,  DIVISION OF  ADMINISTRATION  SERVICES,                 
  DEPARTMENT OF  ENVIRONMENTAL CONSERVATION,  stated that  the                 
  situation in question was an  eleven year old appropriation.                 
  At the time  of the request, it was  unclear if the projects                 
  were discretionary or a "Governor's requested".                              
                                                                               
  He   added  that  a   letter  had   been  received   by  the                 
  Environmental  Protection  Agency  (EPA)  informing  DEC  to                 
  immediately take steps to upgrade the lab for drinking water                 
  tests.  If  this measure was not  completed immediately, the                 
  DEC lab would become  decertified for water testing.   There                 
  are  only  twelve  laboratories  in  Alaska, nine  of  which                 
  certify  public drinking  water systems.    All of  the nine                 
  depend on DEC's certification authority.                                     
                                                                               
  Representative  Therriault  MOVED  to adopt  Amendment  #15.                 
  Representative Brown OBJECTED.                                               
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
                                                                               
                               16                                              
                                                                               
                                                                               
       IN FAVOR:      Martin,  Parnell,  Therriault,   Foster,                 
                      Larson.                                                  
       OPPOSED:       Hanley, Brown, Grussendorf, MacLean.                     
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (5-4).                                                     
                                                                               
  SUPPLEMENTAL BUDGET                                                          
                                                                               
  Co-Chair  MacLean MOVED  to incorporate  the reappropriation                 
  recommendations into the  supplemental budget.   There being                 
  NO OBJECTION, it was adopted.                                                
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND  BUDGET, OFFICE  OF THE  GOVERNOR, referenced                 
  Page  2,  Section 9  (d)  of  the work  draft  dated 5/02/94                 
  indicating an  allocation resulting from a  legal settlement                 
  with  the  Department  of  Environmental  Conservation   and                 
  addressing the waste  water disposal proposal.   There being                 
  NO OBJECTIONS to the changes recommended by Ms. Slagle, they                 
  were adopted.                                                                
                                                                               
  Section #56 & #57                                                            
                                                                               
  Representative Martin noted  that Section #56  would provide                 
  funds  for  an emergency  structural  roof repair  to Aurora                 
  Elementary School, Anchorage for fiscal year ending June 30,                 
  1994.                                                                        
                                                                               
  Co-Chair  MacLean MOVED  to  adopt work  draft  #8-GH2040\J,                 
  Cramer\Utermohle, dated  5/02/94 as  the version  before the                 
  Committee.  There being NO OBJECTION, it was adopted.                        
                                                                               
  Representative Martin  MOVED to incorporate Section #56 into                 
  CS HB 455  (FIN).  Representative  Brown mentioned that  the                 
  federal government should be liable for the repairs proposed                 
  in  Sections  #56  & #57.    There  being  NO OBJECTIONS  to                 
  adopting Sections #56 & #57, they were adopted.                              
                                                                               
  Intertie - CVEA                                                              
                                                                               
  Representative  Brown   provided  the   Committee  with   an                 
  Amendment  addressing concerns  with  the proposed  intertie                 
  versus the Allison Lake power options.                                       
                                                                               
  CHRIS ROSE, CO-CHAIR, ALASKA CITIZENS FOR RESPONSIBLE ENERGY                 
  DEVELOPMENT  (ACRED),  SUTTON,  explained  that ACRED  is  a                 
  citizens group formed to address the particular issue of the                 
  proposed  intertie in  the Glennallen  & Sutton  areas.   He                 
  explained that  last year, the Legislature  appropriated $35                 
                                                                               
                               17                                              
                                                                               
                                                                               
  million   dollars  for   the  project   contingent   upon  a                 
  feasibility study.                                                           
                                                                               
  Mr.  Rose  provided  background  information  on  the  final                 
  feasibility study  for the Sutton-Glennallen intertie.   The                 
  study found that Allison Lake  would be a better alternative                 
  to  the  intertie  for  meeting   Copper  Valley  Electrical                 
  Association's (CVEA) needs.   Given that information,  ACRED                 
  urged  Committee  members  to  reconsider  funding  for  the                 
  intertie.                                                                    
                                                                               
  REPRESENTATIVE HARLEY OLBERG warned  that ACRED is concerned                 
  with the ascetic appearance  of the project.  He  added that                 
  the Allison  Lake project would cost $32 million dollars and                 
  would produce 10%  percent of the power  passing through the                 
  intertie.  The project  at Allison Lake would  face problems                 
  with  water  turbidity.    He  voiced  his  support for  the                 
  original project.                                                            
                                                                               
  Representative Brown asked if Representative Olberg had read                 
  the   feasibility   study   provided   for   the   intertie.                 
  Representative  Olberg stated  he had not  and did  not have                 
  100% faith in such a study.                                                  
                                                                               
  (Tape Change, HFC 94-154, Side 1).                                           
                                                                               
  Representative   Brown  MOVED   to   adopt  the   amendment.                 
  Representative Martin OBJECTED.                                              
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Larson.                              
       OPPOSED:       Hoffman,  Martin,  Parnell,  Therriault,                 
                      Foster, Hanley, MacLean.                                 
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Amendment #16                                                                
                                                                               
  Representative  Brown  MOVED to  adopt  Amendment  #16 which                 
  would repeal the  $15 million dollar appropriation  made for                 
  the  construction  of  the  Whittier  Road.   Representative                 
  Foster OBJECTED.                                                             
                                                                               
  Representative Brown's motion was HELD  pending for the next                 
  Committee meeting.                                                           
                                                                               
  Section #47                                                                  
                                                                               
  Ms. Slagle requested a technical  language change to Section                 
                                                                               
                               18                                              
                                                                               
                                                                               
  to pay grievance awards  but instead to cover the  costs for                 
  investigations.  Co-Chair Larson MOVED to amend Section #47.                 
  There  being  NO  OBJECTION,  the  language was  changed  to                 
  reflect this use for the appropriation.                                      
                                                                               
  HB 455 was HELD in Committee for further consideration.                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:10 A.M.                                          
                                                                               
                                                                               
                               19                                              

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