Legislature(1995 - 1996)

03/29/1995 01:37 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                         March 29, 1995                                        
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 95-69, Side 1, #000 - end.                                          
  TAPE HFC 95-69, Side 2, #000 - end.                                          
  TAPE HFC 95-70, Side 1, #000 - end.                                          
  TAPE HFC 95-70, Side 2, #000 - end.                                          
  TAPE HFC 95-71, Side 1, #000 - end.                                          
  TAPE HFC 95-72, Side 1, #000 - #653.                                         
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Mark  Hanley  called the  House  Finance  Committee                 
  meeting to order at 1:37 p.m.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Martin                          
  Co-Chair Foster               Representative Mulder                          
  Representative Brown          Representative Navarre                         
  Representative Grussendorf    Representative Parnell                         
  Representative Kelly          Representative Therriault                      
  Representative Kohring                                                       
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Kim  Elton;   Representative  Gene   Kubina;                 
  Representative  Irene  Nicholia;  Arbe  Williams,  Director,                 
  Division of  Administrative Services,  Department of  Labor;                 
  Nico  Bus,  Acting   Director,  Support  Services  Division,                 
  Department of Natural Resources;  Frank Homan, Commissioner,                 
  Commercial Fisheries Entry Commission; John Barnett, Storage                 
  Tank Assistance, Department  of Environmental  Conservation;                 
  Janet Clarke, Director, Division of Administrative Services,                 
  Department of Health and Social Services; Guy Bell, Director                 
  of  Administrative  Services,  Department  of  Commerce  and                 
  Economic    Development;     Karen    Rehfeld,     Director,                 
  Administrative  Services,  Department   of  Education;   Joe                 
  McCormick,  Executive   Director,  Postsecondary   Education                 
  Commission; Darby Anderson, Superintendent,  Alyeska Central                 
  School; John  Cramer,  Director,  Division  of  Agriculture,                 
  Department of Natural Resources.                                             
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 100    An Act making appropriations for the operating and                 
            loan program expenses of  state government and  to                 
            capitalize funds; making appropriations under art.                 
            IX,  sec.  17(c),  Constitution of  the  State  of                 
                                                                               
                                1                                              
                                                                               
                                                                               
            Alaska,  from  the  constitutional budget  reserve                 
            fund; and providing for an effective date.                         
                                                                               
            HB  100   was  HELD  in   Committee  for   further                 
            discussion.                                                        
  HOUSE BILL NO. 100                                                           
                                                                               
       "An Act  making  appropriations for  the operating  and                 
       loan  program  expenses  of  state  government  and  to                 
       capitalize funds; making appropriations under art.  IX,                 
       sec. 17(c), Constitution  of the State of  Alaska, from                 
       the constitutional budget  reserve fund; and  providing                 
       for an effective date."                                                 
                                                                               
       (Copies of amendments  will be on  file with the  House                 
       Finance  Committee  Secretaries  Office, Capital,  Room                 
       519,  until  the  end of  the  Nineteenth  Alaska State                 
       Legislature.  Copies of the amendments will be found at                 
       the Legislative Library after the end of the Nineteenth                 
       Alaska State Legislature.)                                              
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
  Representative Martin  MOVED to adopt  Amendment DOE-1 (copy                 
  on file).  The amendment adds  $80.0 thousand dollars to the                 
  Alaska Maps for Alaska's Students  project to cover printing                 
  costs.  The  appropriation would be provided by the deletion                 
  of  designated  grant funding  for  the Institute  of Alaska                 
  Native  Arts, Museum of  Alaska Transportation  and Industry                 
  and the NANA Museum of the Arctic.                                           
                                                                               
  Representative  Brown  questioned  if this  item  should  be                 
  included in capital projects funding since  it is a one time                 
  appropriation.                                                               
                                                                               
  Representative   Martin   reiterated  that   the  identified                 
  designated grants  would be  zeroed and  transferred to  the                 
  Alaska  Maps  for  Alaska's  Students  project  out  by  the                 
  amendment.    Representative   Kohring  spoke  against   the                 
  amendment.                                                                   
                                                                               
  Co-Chair Hanley pointed  out that  school districts are  not                 
  prevented from purchases the maps.                                           
                                                                               
  Representative   Brown   suggested  the   Committee  approve                 
  authorization  for general  fund  program  receipts to  fund                 
  printing  costs.     She  MOVED  to  divide   the  question.                 
  Representative  Mulder  objected.     Representative   Brown                 
  WITHDREW her motion to divide the question.                                  
                                                                               
  A roll call vote was taken on the MOTION to  adopt Amendment                 
                                                                               
                                2                                              
                                                                               
                                                                               
  DOE-1.                                                                       
                                                                               
  IN FAVOR: Martin                                                             
  OPPOSED:  Brown,  Grussendorf,   Navarre,  Kelly,   Kohring,                 
  Mulder,        Parnell, Therriault, Foster, Hanley                           
                                                                               
  The MOTION FAILED (1-10).                                                    
                                                                               
  Representative Kohring MOVED to adopt Amendment  DOE-2 (copy                 
  on file).   He explained that  the amendment would give  the                 
  Alaska State Council on the Arts  the authority to use their                 
  appropriation of  $144.0 thousand dollars to  access federal                 
  funding.  He  noted that  up to $675.3  thousand dollars  in                 
  federal  funds are  available.   He acknowledged that  it is                 
  unlikely that the  entire federal match will  be accessed at                 
  the current appropriation level.   There being NO OBJECTION,                 
  it was so ordered.                                                           
                                                                               
  Representative Grussendorf  MOVED to  adopt Amendment  DOE-4                 
  (copy on file).  The amendment would restore $414.0 thousand                 
  dollars to the  Kotzebue Technical Center and  delete $414.0                 
  thousand dollars from Correspondence Study-State.  He argued                 
  that the reduction  would not harm Correspondence  Study and                 
  emphasized  that the  Kotzebue  Technical  Center needs  the                 
  funding to function.                                                         
                                                                               
  Representative  Navarre  suggested  that the  Correspondence                 
  Study component would be negatively impacted.                                
                                                                               
  Representative Kohring observed that there is not sufficient                 
  general fund  dollars in the Correspondence  Study component                 
  to fund the  amendment.  He pointed out that the majority of                 
  funding in this component is foundation formula funding.  He                 
  stated that there is only $59.8  thousand dollars in General                 
  Funds in this component.                                                     
                                                                               
  DARBY  ANDERSON,  SUPERINTENDENT,  ALYESKA  CENTRAL  SCHOOL,                 
  DEPARTMENT  OF  EDUCATION  testified that  there  are  2,000                 
  students served by  the Correspondence  Study program.   She                 
  stated that personnel costs support teachers and staff based                 
  primarily in Juneau.   The  average teacher/pupil ration  in                 
  the Correspondence Study  program is 67  to 1.  The  average                 
  cost is $2.4  thousand dollars per  student as opposed to  a                 
  state average of $7.9 thousand dollars per student.                          
                                                                               
  Representative Martin spoke in support of the Correspondence                 
  Study  program.    Representative  Kohring  maintained  that                 
  removal of the funding would have a serious impact.                          
                                                                               
  A roll call vote was taken  on the MOTION to adopt Amendment                 
  DOE-4.                                                                       
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
  IN FAVOR: Grussendorf, Foster                                                
  OPPOSED:  Brown,  Navarre,  Kelly, Kohring,  Martin, Mulder,                 
  Parnell,       Therriault, Foster, Hanley                                    
                                                                               
  The MOTION FAILED (2-9).                                                     
                                                                               
  Co-Chair  Foster  MOVED to  adopt  Amendment DOE-3  (copy on                 
  file).   He noted that  the amendment  would restore  $200.0                 
  thousand  dollars  for the  Kotzebue  Technical Center.   He                 
  explained that $75.0 thousand  dollars would be appropriated                 
  from  a  reduction  in  the  Commissioner's  Office  in  the                 
  Department of Health  & Social Services and  $125.0 thousand                 
  dollars  would  be  appropriated  from  a reduction  in  the                 
  Correspondence Study component, Department of Education.                     
                                                                               
  Representative Brown MOVED  to AMEND Amendment DOE-3  to the                 
  Correspondence Study  component to  $59.8 thousand  dollars.                 
  She pointed out  that this  is the total  amount of  General                 
  Funds left  in the  Correspondence Study  component.   There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Representative Martin spoke in support of continuing funding                 
  to the Correspondence Study component.                                       
                                                                               
  Co-Chair  Foster  MOVED  to delete  the  reduction  of $59.8                 
  thousand dollars from Correspondence Study.                                  
                                                                               
  JANET CLARK, DIRECTOR, DIVISION  OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES spoke in opposition                 
  to  Amendment  DOE-3.    She emphasized  the  need  to track                 
  federal changes for welfare reform and block grants.                         
                                                                               
  A roll call vote was taken  on the MOTION to adopt Amendment                 
  DOE-3.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre, Kelly, Foster                         
  OPPOSED:  Kohring,  Martin,  Mulder,   Parnell,  Therriault,                 
  Hanley                                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative Grussendorf MOVED to adopt new Amendment DOE-                 
  5 (copy on  file).   He explained that  the amendment  would                 
  delete $69.1 thousand dollars from  Boarding Home Grants and                 
  appropriate $69.1 thousand dollars to Mt. Edgecumbe Boarding                 
  School.    He noted  that  there  are 3  students  for every                 
  available position in the Mt. Edgecumbe Boarding School.                     
                                                                               
  Co-Chair  Hanley  noted that  the  FY 96  proposed  level is                 
  $100.0  thousand  dollars above  FY  95, but  $69.0 thousand                 
  dollars below Governor Knowles' FY 96 request.                               
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
  KAREN REHFELD, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT                 
  OF  EDUCATION   testified   that  the   transfer  would   be                 
  appropriate.  She stated that  $189.5 thousand dollars would                 
  remain in the Boarding House component.  She estimated  that                 
  this would be sufficient to meet the needs of the component.                 
                                                                               
  There being NO OBJECTION, Amendment DOE-5 was adopted.                       
                                                                               
  Representative Navarre HELD Amendment DOE-6 (copy  on file).                 
                                                                               
                                                                               
  Representative Brown MOVED to adopt Amendment DOE-7 (copy on                 
  file).    Co-Chair Hanley  OBJECTED.   Representative  Brown                 
  stated that the  amendment would add $75.7  thousand dollars                 
  to  the  WICHE  Student  Exchange  program by  reducing  the                 
  Correspondence  Study program by  $59.8 thousand dollars and                 
  Administrative  Services by  $15.9  thousand  dollars.   She                 
  questioned if the $59.8 thousand  general fund dollars could                 
  be replaced by program receipts.                                             
                                                                               
  Ms. Anderson explained  that the  $59.8 thousand dollars  in                 
  General Funds are in the Correspondence Study component as a                 
  result of  contract negotiations.   She  stressed that  this                 
  reduction would result in the loss  of at least one teaching                 
  position.  She stated that this would be a significant loss.                 
                                                                               
  Representative  Martin spoke in opposition to the amendment.                 
                                                                               
                                                                               
  (Tape Change, HFC 95-69, Side 2)                                             
                                                                               
  JOE   MCCORMICK,   JOE   MCCORMICK,    EXECUTIVE   DIRECTOR,                 
  POSTSECONDARY  EDUCATION,  DEPARTMENT  OF EDUCATION  gave  a                 
  brief  history  of  the  WICHE  program.    He  stated  that                 
  approximately 1,079 Alaskan students have benefited from the                 
  program  in  medical  and health  related  professions.   He                 
  stressed that the proposed funding level would result in the                 
  continuation  of the  program  for  existing students  only.                 
  Representative  Brown  noted  that  735  undergraduates  are                 
  participated in 1994.  Mr. McCormick pointed out that  WICHE                 
  eligible students  are given  preferential  enrollment.   He                 
  noted that only 30 of 125  eligible students were funding in                 
  FY  95.   He  emphasized  that the  program  recognizes that                 
  Alaska will  never  have the  educational  opportunities  of                 
  larger states.                                                               
                                                                               
  A roll call vote was taken on the MOTION to adopt  Amendment                 
  DOE-7.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre, Mulder                                
  OPPOSED:  Kelly,  Kohring,   Martin,  Parnell,   Therriault,                 
  Foster,        Hanley                                                        
                                                                               
                                5                                              
                                                                               
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Grussendorf MOVED to  RESCIND the Committee's                 
  action in  adopting Intent  Language DOE-1  (copy on  file).                 
  The intent  states that the  "Mr. Edgecumbe school  be given                 
  notice that funding for the school will not be provided past                 
  FY 96."   Representative  Kohring OBJECTED.   Representative                 
  Kohring WITHDREW his  objection.  There being  NO OBJECTION,                 
  Letter of Intent DOE-1 was rescinded.                                        
                                                                               
  A roll call  vote was taken  on the  MOTION to adopt  Intent                 
  Language DOE-1.   Representative Martin spoke in  support of                 
  the   continuation    of   funding   for    Mt.   Edgecumbe.                 
  Representative  Brown  suggested that  telecommunications be                 
  utilized when possible.                                                      
                                                                               
  IN FAVOR: Therriault                                                         
  OPPOSED:  Brown,  Grussendorf,   Navarre,  Kelly,   Kohring,                 
  Martin,        Mulder, Parnell, Foster, Hanley                               
                                                                               
  The MOTION FAILED (1-10).                                                    
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
  Representative Therriault  MOVED to adopt  amended Amendment                 
  HSS-1  (copy on file).  Representative GRussendorf OBJECTED.                 
  The amendment would  transfer $77,176 thousand dollars  from                 
  the  Alcohol and  Drug  Abuse Services  and  $33.2 from  the                 
  Department of Community  and Regional  Affairs to created  a                 
  separate BRU for the Fairbanks Native Association.                           
                                                                               
  Representative  Grussendorf pointed  out that  the amendment                 
  would created a  designated grant  and may  take funds  away                 
  from  rural  areas.    Representative  Therriault  spoke  in                 
  support of the amendment.                                                    
                                                                               
  A roll call vote  was taken on the MOTION to adopt Amendment                 
  HSS-1.                                                                       
                                                                               
  IN FAVOR: Kelly, Kohring, Mulder, Therriault, Foster, Hanley                 
                                                                               
  OPPOSED:  Brown, Grussendorf, Navarre, Parnell                               
                                                                               
  The MOTION FAILED (4-6).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment HSS-2 (copy on                 
  file).   She  explained that  the  amendment would  use  the                 
  Mitigation Account to fund $2.0 million dollars for Medicaid                 
  Non-Facility, Department of  Health & Social Services.   She                 
  stressed  that  the  amendment  would  fund  adult  Medicaid                 
  services for dental,  speech therapy, occupational  therapy,                 
                                                                               
                                6                                              
                                                                               
                                                                               
  vision   examinations,   eye  glasses,   hearing   aids  and                 
  chiropractors.  She argued that  providing these services is                 
  cost effective.  She reiterated  that the Mitigation Account                 
  is  used  to  subsidize  gas  station and  other  businesses                 
  required to clean up hazardous materials.                                    
                                                                               
  JOHN  BARNETT,  EXECUTIVE DIRECTOR,  BOARD  OF  STORAGE TANK                 
  ASSISTANCE testified that only 29  percent of eligible tanks                 
  are  in  gas stations.   He  maintained  that most  of these                 
  facilities  are small and Alaskan  owned.  He emphasized the                 
  need to maintain the program.  He stated that 132 sites have                 
  been cleaned or  are in the  process of  being cleaned.   He                 
  discussed applications and  their ranking.   He pointed  out                 
  that 15 of the  current clean up sites are  operating ground                 
  water recover  systems to  restore drinking water  supplies.                 
  He pointed out that some sites cost $500.0 thousand dollars.                 
  Banks will not finance contaminated site clean up.  He noted                 
  that the program is spread throughout the state.                             
                                                                               
  Representative Therriault  noted  that  40  percent  of  the                 
  grants  are within the  Anchorage area.   He  explained that                 
  money  in  the Mitigation  Account  not appropriated  to the                 
  Storage Tank Assistance Fund is transferred in 20 (a) of the                 
  front section to the  Hazardous Substance Release Prevention                 
  Account.                                                                     
                                                                               
  Representative  Navarre  expressed support  and acknowledged                 
  the need  for  the  Storage Tank  Assistance  Program.    He                 
  stressed that there is a  need for basic preventive services                 
  in the Medicaid program.  He suggested that the Storage Tank                 
  Assistance program could be funded by a .01 cent fuel tax.                   
                                                                               
  Representative   Brown  noted   that  the   owner  has   the                 
  responsibility  of  complying   with  water  laws   and  not                 
  polluting.    She  observed that  most  states  fund similar                 
  programs through a  fuel tax.   Mr. Barnett noted Alaska  is                 
  the only state that has a  direct appropriation to fund fuel                 
  clean  up  programs.    Representative  Brown noted  that  a                 
  homeowner who  had  a leaking  tank  would not  be  eligible                 
  unless the tank was  over 1,100 gallons.  She  stressed that                 
  there is no funding source other than General Funds.                         
                                                                               
  Ms. Clarke explained that the Medicaid budget serves 100,000                 
  thousand  Alaskans.    The  amendment  would  restore  seven                 
  optional services for 15,000 Alaskans.                                       
                                                                               
  Representative Martin  expressed concern that  the amendment                 
  institutes  major changes.    Representative Brown  stressed                 
  that $2. million dollars  would be left in the  Storage Tank                 
  Assistance Fund.                                                             
                                                                               
  Representative  Parnell  emphasized  that  the programs  are                 
                                                                               
                                7                                              
                                                                               
                                                                               
  unrelated.   Representative  Brown  argued  that  the  whole                 
  budget  should  be  considered  and  shifts   in  priorities                 
  allowed.                                                                     
                                                                               
  A roll call vote  was taken on the MOTION to adopt Amendment                 
  HSS-2.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Foster, Hanley                                           
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF LABOR                                                          
                                                                               
  Representative Brown MOVED to adopt Amendment LAB-1 (copy on                 
  file).   Representative  Mulder  OBJECTED.    Representative                 
  Brown explained that the amendment would add $302.8 thousand                 
  dollars from  the Mitigation  Account to  the Department  of                 
  Labor, Occupational Safety and Health.   The amendment would                 
  also  authorize  $188.1  thousand  dollars in  general  fund                 
  program receipts.                                                            
                                                                               
  (Tape Change, HFC 95-70, Side 1)                                             
                                                                               
  Representative Mulder spoke in  opposition to the amendment.                 
  He maintained  that offices  will not be  closed across  the                 
  state.  He  observed that all remaining general fund dollars                 
  are federally matched.                                                       
                                                                               
  ARBE   WILLIAMS,   DIRECTOR,  DIVISION   OF  ADMINISTRATION,                 
  DEPARTMENT OF LABOR stated that  the Department will attempt                 
  to keep offices open.  She  could not guarantee that offices                 
  will not be closed.  She  explained that the $188.1 thousand                 
  dollars  in  program  receipts  were  new.   The  Department                 
  planned to sell  federal regulations bought at a  25 percent                 
  discount.   She noted that  the reduction in program receipt                 
  authority   will  prevent   them   from  reselling   federal                 
  regulations.                                                                 
                                                                               
  Representative Mulder  stated  that  program  receipts  were                 
  reduced in order to  remain under the Department's cap.   He                 
  added that the program receipts were seen as an expansion.                   
                                                                               
  Representative  Brown  summarized  that the  reduction  will                 
  delay  response  of complaints  from  10  to 30  days.   Ms.                 
  Williams  stated  that  less  serious  complaints  could  be                 
  delayed as long as 3 months.                                                 
  She  added  that   state  requirements   which  compel   the                 
  Department to have jurisdiction  over businesses with  fewer                 
  than 10 employees will not be met.                                           
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
  Representative Mulder  stressed that  the Subcommittee  felt                 
  that the reduction  was the  least harmful way  to meet  the                 
  cap.                                                                         
                                                                               
  A roll call vote  was taken on the MOTION to adopt Amendment                 
  LAB-1.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kohring,  Martin,  Mulder,   Parnell,  Therriault,                 
  Foster,        Hanley                                                        
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative  Brown  WITHDREW  Amendment  LAB-2  (copy  on                 
  file).  She  noted that Representative Martin  has a similar                 
  amendment under the  Department of  Natural Resources.   The                 
  amendment would have added $80.0  thousand dollars for Labor                 
  Market Information.                                                          
                                                                               
  DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT                              
                                                                               
  Representative  Mulder MOVED  to adopt  Amendment  CED-1, on                 
  behalf of Co-Chair Foster (copy on file).  He explained that                 
  the Subcommittee reduced Alaska Rural Development Assistance                 
  grants  (ARDORs)  by  approximately  $16.0 thousand  dollars                 
  each.   This amount was  transferred to  the Alaska  Tourism                 
  Marketing  Council.    He  noted  that the  amendment  would                 
  transfer the funding back to the ARDOR program.                              
                                                                               
  Representative  Kelly  spoke  against  the  amendment.    He                 
  stressed that ARDOR's are tied to private industry.                          
                                                                               
  Representative Navarre  spoke in  support of  the amendment.                 
  He maintained that ARDORs  are effective.  He  stressed that                 
  ARDORs are economic  development programs for Alaskans  that                 
  are working.                                                                 
                                                                               
  Representative Brown noted that she  is an ex-officio member                 
  of the  Anchorage Economic Development  Corporation which is                 
  the ARDOR for Anchorage.                                                     
                                                                               
  A  roll call vote was taken on the MOTION to adopt Amendment                 
  CED-1.                                                                       
                                                                               
  IN FAVOR: Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Foster, Hanley                                           
  OPPOSED:  Brown, Grussendorf, Navarre                                        
                                                                               
  Co-Chair Foster was absent from the vote.                                    
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
                                                                               
                                9                                              
                                                                               
                                                                               
  Representative Brown MOVED to adopt Amendment CED-2 (copy on                 
  file).  She  explained that the amendment  would fund Market                 
  Surveillance in  the Division  of Insurance  through program                 
  receipts collected from insurance fees.                                      
                                                                               
  Representative Kelly maintained  that the program represents                 
  an expansion in bureaucracy.                                                 
                                                                               
  GUY BELL,  DIRECTOR, ADMINISTRATIVE SERVICES,  DEPARTMENT OF                 
  COMMERCE AND ECONOMIC DEVELOPMENT explained that fees by the                 
  Division of Insurance are adjusted to cover operating costs.                 
  He added that the Division feels that collections of premium                 
  tax would be maximized by increased scrutiny.                                
                                                                               
  A roll  call vote was taken on the MOTION to adopt Amendment                 
  CED-2.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Foster, Hanley                                           
                                                                               
  Co-Chair Foster was absent from the vote.                                    
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment CED-3 (copy on                 
  file).  She  reiterated her conflict  of interest as an  ex-                 
  officio  member of the Anchorage  ARDOR.  She explained that                 
  the amendment  would provide an  net savings to  the General                 
  Fund of $1.0  million dollars by restructuring  the programs                 
  within the Department of Commerce and Economic Development.                  
                                                                               
  REPRESENTATIVE KIM ELTON spoke in  support of the amendment.                 
  The amendment  would  eliminate  the  Division  of  Economic                 
  Development  and  Office of  International Trade  and shifts                 
  $2.4 of $3.4  million dollars  to the Commissioner's  Office                 
  for restructuring.  He emphasized the importance of economic                 
  development.     He  explained  that  the   amendment  would                 
  eliminate  21  positions  and transfer  3  positions  to the                 
  Office of  the Commissioner.   Additional  funding would  be                 
  provided to the ARDORs.                                                      
                                                                               
  Representative   Mulder   acknowledged  the   importance  of                 
  economic development but  spoke against  the amendment.   He                 
  suggested that the component be  considered with programs in                 
  the  Department  of  Community  and  Regional Affairs.    He                 
  questioned  if  the  Commissioner  supports  the  amendment.                 
  Representative Elton acknowledged  that the Commissioner did                 
  not  request  the amendment.   He  spoke  in support  of the                 
  amendment.                                                                   
                                                                               
  Representative Elton recommended  that $1.4 million  dollars                 
                                                                               
                               10                                              
                                                                               
                                                                               
  by  applied  to   ARDORs  and   $200  thousand  dollars   be                 
  appropriated to Making the Case.                                             
                                                                               
  Representative  Grussendorf  expressed   concern  that   the                 
  amendment would make it difficult to sort out differences in                 
  an operating budget conference committee.                                    
                                                                               
  Representative Martin  maintained that  the amendment is  an                 
  intrusion into the powers of the Governor.                                   
                                                                               
  Representative  Kelly stressed  that  ARDORs should  be more                 
  closely tied to private enterprise.  He maintained that more                 
  emphasis should be put on international trade.                               
                                                                               
  Representative Navarre  pointed out that each ARDOR receives                 
  less than one office in the legislature.  He emphasized that                 
  the ARDOR program  is just  getting started.   He felt  that                 
  funding  should be maintained.  He estimated that ARDORs can                 
  become self supporting over time.                                            
                                                                               
  Representative Brown  suggested that the  amendment reflects                 
  the type of  prioritization that the legislature  must make.                 
  She  suggested that  much  of  the  work  performed  by  the                 
  Department such as  working with industry to  make sure that                 
  regulatory  barriers  are  not  arbitrarily burdensome,  are                 
  discretionary, without a measurable  benefit.  She estimated                 
  that a  million  dollar reduction  would  not result  in  an                 
  appreciable difference in  the economic  development in  the                 
  State.  She maintained that  ARDORs are grass root programs.                 
  She recounted achievements of the Anchorage ARDOR.                           
                                                                               
  Representative Navarre pointed out that ARDORs help  develop                 
  business plans to allow those that wish to begin business to                 
  have a plan for financing.                                                   
                                                                               
  A roll call vote was taken on the MOTION to adopt  Amendment                 
  CED-3.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre, Foster                                
  OPPOSED:  Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Hanley                                                   
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  (Tape Change, HFC 95-70, Side 2)                                             
                                                                               
  Representative Navarre MOVED to adopt amended Amendment CED-                 
  4 (copy on  file).   He explained that  the amendment  would                 
  delete   $75.0   thousand  dollars   from   the   Office  of                 
  International Trade  and restore  $75.0 thousand dollars  to                 
  Alaska   Rural   Development  Assistance   grants  (ARDORs).                 
  Representative Kelly OBJECTED.                                               
                                                                               
                               11                                              
                                                                               
                                                                               
  A roll call vote was taken on the MOTION  to adopt Amendment                 
  CED-4.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Foster, Hanley                                           
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF NATURAL RESOURCES                                              
                                                                               
  Representative Martin MOVED  to adopt Amendment  DNR-1 (copy                 
  on  file).   He explained  that the amendment  would restore                 
  $80.0 thousand  dollars to the  Department of Labor  for the                 
  State Data Center to  provide census information.   He noted                 
  that  the state  of  Alaska was  under-counted  in the  last                 
  census.  The amendment would transfer $50.0 thousand general                 
  dollars from  the Agricultural  Revolving Loan  Fund to  the                 
  Director's Office, Division of Agriculture.   Representative                 
  Therriault OBJECTED.                                                         
                                                                               
  NICO  BUS,  ACTING  DIRECTOR,  DIVISION  OF   ADMINISTRATIVE                 
  SERVICES,  DEPARTMENT OF  NATURAL RESOURCES  emphasized that                 
  the  Agricultural  Revolving  Loan Fund  was  intended  as a                 
  revolving loan fund.  He noted that the fund has been seeded                 
  with  General  Fund appropriations.    He observed  that the                 
  beginning  balance  was  over  $6.0  million  dollars.    He                 
  emphasized that the Fund is  starting to be self sustaining.                 
  He observed  that the  Mental Health  Trust settlement  will                 
  create a significant demand on the Fund.  He maintained that                 
  approval  of  the  proposed  amendments,  which  total  $2.0                 
  million dollars in  reductions to the Fund,  would result in                 
  the bankruptcy of the Fund.  He  emphasized that most of the                 
  loans funded through the Fund do not qualify  as traditional                 
  banking loans.                                                               
                                                                               
  In response to a question by Representative Grussendorf, Mr.                 
  Bus summarized that  reductions to the Fund  will jeopardize                 
  functions  critical   to  the   industry.     Representative                 
  Grussendorf noted that  some of  the proposals contained  in                 
  the amendments would generate General Fund revenue.                          
                                                                               
  Mr. Bus noted that $500.0 thousand dollars in new charges to                 
  the  Agricultural  Revolving  Loan   Fund  were  adopted  in                 
  Subcommittee.    In  addition,  $260.0  thousand  dollars in                 
  operational charges were reduced.                                            
                                                                               
  Representative  Therriault  noted that  the  $500.0 thousand                 
  dollars  was  offset to  result in  a  net effect  of $300.0                 
  thousand  dollars.    He  suggested  that  the  Division  of                 
  Forestry  will  have  to  be  merged with  the  Division  of                 
                                                                               
                               12                                              
                                                                               
                                                                               
  Agriculture.    He  expressed  concern  that  acceptance  of                 
  reductions  in the proposed  amendments would jeopardize the                 
  current balance.                                                             
                                                                               
  JOHN CRAMER,  DIRECTOR, DIVISION OF  AGRICULTURE, DEPARTMENT                 
  OF  NATURAL RESOURCES replied to questions by Representative                 
  Brown. Mr. Cramer stated that the default rate for borrowers                 
  is  6  percent.   He  acknowledged  that 17  percent  of the                 
  outstanding loans  are  in default.    He observed  that  42                 
  parcels in  the  Northern  region of  the  State  have  been                 
  identified for land disposal.  There are 15 parcels in South                 
  Central Alaska.  An additional  23 parcels will be  disposed                 
  of in the Point McKenzie area when the appeal  of the Mental                 
  Health Trust Settlement has been finalized.                                  
                                                                               
  Representative Brown  questioned  if it  is  the  Division's                 
  philosophy that  all farmers in  the State  are entitled  to                 
  have their  operations  funded by  the  State.   Mr.  Cramer                 
  replied that it  was not the  Division's intent to fund  all                 
  farm operations.  He observed that 60 percent of the state's                 
  farmers' short term operational costs are funded through the                 
  Agricultural Revolving Loan Fund.  He noted that the Fund is                 
  currently able  to cover  demand.   He  emphasized that  the                 
  delinquency rate on new loans is currently at 5.6 percent.                   
                                                                               
  Representative Brown  expressed concern  that previous  land                 
  disposals were not successful.                                               
                                                                               
  Mr. Cramer  assured members  that the  Division has  learned                 
  from past mistakes.   He noted  that there are  a number  of                 
  structures on the  parcels in Point  McKenzie.  Most of  the                 
  land has  been cleared  and could  be into  production in  a                 
  short period of time.  He stressed that start up costs would                 
  be reduced.                                                                  
                                                                               
  Mr.  Cramer  noted  that the  Division  does  inspections of                 
  products grown  or brought  into the  state of  Alaska.   He                 
  observed that federal funds cover at least 50 percent of the                 
  program.   He stated  that the federal  government would not                 
  perform the inspections  if the State  no longer funded  the                 
  program.                                                                     
                                                                               
  Representative Brown  questioned the amount of funding spent                 
  on marketing agricultural products.   Mr. Cramer stated that                 
  the Alaska  Grown Program  is funded  from the  Agricultural                 
  Revolving  Loan Fund  at $300.0  thousand dollars.    It was                 
  shifted from a General Fund appropriation approximately five                 
  years ago.                                                                   
                                                                               
  Co-Chair Hanley noted that 65 percent of the State's milk is                 
  imported from out  of state.   He observed that the  state's                 
  involvement was not successful in the dairy industry.                        
                                                                               
                               13                                              
                                                                               
                                                                               
  Representative   Therriault   reiterated   that   new   loan                 
  delinquency has been reduced to 5.6 percent.   He maintained                 
  that the current level of agricultural growth is sound.                      
                                                                               
  Representative Brown questioned why the State has taken such                 
  an active role in agriculture.  She asked if state supported                 
  activities would  cease if state  funding was reduced.   Mr.                 
  Cramer  estimated  that  the rate  of  development  would be                 
  slowed.                                                                      
                                                                               
  In response  to a  question by  Representative Navarre,  Mr.                 
  Cramer  explained  that current  loans  are shorter  and are                 
  better  monitored.     He  added  that  projects   are  more                 
  conservative.  The interest rate is 8 percent.                               
                                                                               
  Mr. Bus noted  that there are a total of  $500.0 thousand in                 
  general   fund  dollars   remaining   in  the   Agricultural                 
  Development component after Subcommittee reductions.                         
                                                                               
  Representative Mulder MOVED  to AMEND  Amendment DNR-1,  add                 
  $30.0 thousand  dollars from the Agricultural Revolving Loan                 
  Fund.                                                                        
  Mr. Bus recommended  that the amendment to  the amendment be                 
  changed  to  reflect a  transfer to  the  General Fund.   He                 
  emphasized  that  it  will  be   difficult  to  account  for                 
  expenditures  in another  department  from the  Agricultural                 
  Revolving Loan Fund.                                                         
                                                                               
  Representative  Mulder WITHDREW  his amendment  to Amendment                 
  DNR-1.    There  being  NO  OBJECTION,  it  was  so ordered.                 
  Representative  Mulder MOVED  to  AMEND Amendment  DNR-1, to                 
  appropriate  $30.0 thousand  dollars  from the  Agricultural                 
  Revolving  Loan  Fund to  the  General Fund  and appropriate                 
  $30.0 thousand  general fund  dollars to  the Department  of                 
  Labor.  Representatives  Martin and Mulder spoke  in support                 
  of the amendment.                                                            
                                                                               
  A roll call vote was taken  on the MOTION to adopt Amendment                 
  DNR-1.                                                                       
                                                                               
  IN FAVOR: Parnell,  Brown,   Grussendorf,  Martin,   Mulder,                 
  Navarre,       Foster, Hanley                                                
  OPPOSED:  Therriault, Kelly, Kohring                                         
                                                                               
  The MOTION PASSED (8-3).                                                     
                                                                               
  Co-Chair Foster MOVED to adopt amended Amendment DNR-2 (copy                 
  on file).  He explained that the amendment would appropriate                 
  $40.0 thousand  dollars from the Agricultural Revolving Loan                 
  Fund  to  the General  Fund  and appropriate  $40.0 thousand                 
  dollars from the General Fund to the Department of Community                 
                                                                               
                               14                                              
                                                                               
                                                                               
  and  Regional Affairs for a  designated grant to the Deltana                 
  Corporation for winter  snow and ice  removal.  He spoke  in                 
  support of the amendment.                                                    
                                                                               
  (Tape Change, HFC 95-71, Side 1)                                             
                                                                               
  In  response  to  a question  by  Representative  Brown, Mr.                 
  Cramer explained that the road in  question was not built by                 
  the Division of Agriculture.  The road was not the result of                 
  a  Division  of  Agriculture  disposal.    The  Division  of                 
  Agriculture  inherited  the  area  from  the  Department  of                 
  Commerce and Economic Development.   He noted that the  road                 
  is  30 miles  outside of Delta  Junction across  the Gerstle                 
  River.                                                                       
                                                                               
  Representative  Brown  observed  that  the  even though  the                 
  program was under  the Department  of Commerce and  Economic                 
  Development  it  was  still the  agriculture  program.   She                 
  suggested that agricultural  disposal should not be  made if                 
  there is no existing supporting infrastructure.                              
                                                                               
  Representative Therriault spoke against  the amendment.   He                 
  pointed out that  a road  service area could  be created  to                 
  provide local support.                                                       
                                                                               
  REPRESENTATIVE KUBINA spoke in support of the amendment.  He                 
  stated that the  Department of Natural  Resources previously                 
  paid for the road to be plowed.   He observed that there are                 
  13 children in  the area that  were unable to attend  school                 
  due to the  road condition.   He requested  that funding  be                 
  provided for an additional year.   He emphasized that he has                 
  communicated to the residents  that they must find a  way to                 
  fund the road maintenance in future years.                                   
                                                                               
  A roll call vote was taken on the MOTION  to adopt Amendment                 
  DNR-2.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Mulder, Navarre, Foster                        
  OPPOSED:  Kelly,  Kohring,   Martin,  Parnell,   Therriault,                 
  Hanley                                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative Grussendorf WITHDREW Amendment DNR-3 (copy on                 
  file).                                                                       
                                                                               
  Representative Grussendorf  MOVED to  adopt Amendment  DNR-4                 
  (copy  on  file).   He noted  that  the amendment  would add                 
  $100.0   thousand   dollars   for   Forest  Management   and                 
  Development.  Funding would  be provided by a transfer  from                 
  the Agricultural Revolving  Loan Fund.  He  pointed out that                 
  the component does  not have a  Deputy Commissioner.   There                 
                                                                               
                               15                                              
                                                                               
                                                                               
  are two managers  with a wide  range of duties.   He gave  a                 
  brief overview  of the managers'  duties.  He  observed that                 
  one of the managers will be reduced if the amendment is  not                 
  adopted.                                                                     
                                                                               
  A roll call vote was taken  on the MOTION to adopt Amendment                 
  DNR-4.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Foster, Hanley                                           
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment DNR-5 (copy on                 
  file).  Representative Therriault  OBJECTED.  Representative                 
  Brown  explained that the first part  of the amendment would                 
  authorize and addition of $75.0  thousand dollars in program                 
  receipts   for   Land   Development,    Public   Information                 
  Center/Publications.   The program receipts are derived from                 
  the purchases by the public of materials from the Department                 
  of Natural Resources.  She stated that without the  adoption                 
  of Amendment  DNR-5 the component's staff will be reduced by                 
  25 percent.                                                                  
                                                                               
  Representative  Brown  noted  that  the  second  portion  of                 
  Amendment  DNR-5  would  add  $154.0  thousand  dollars  for                 
  Information Resource Management.   This would be offset by a                 
  $154.0 thousand  dollar reduction  in General  Funds to  the                 
  Agricultural  Development  component  in the  Department  of                 
  Natural Resources.   She  noted the  importance of  computer                 
  information services in  the Department.   Failure to  adopt                 
  the  amendment  would  result  in  the  reduction  of  three                 
  positions.                                                                   
                                                                               
  Representative  Brown MOVED  to  AMEND  Amendment  DNR-5  to                 
  change  the  funding  source  from   General  Funds  in  the                 
  Agricultural  Development  component  to   the  Agricultural                 
  Revolving Loan Fund.   There being  NO OBJECTION, it was  so                 
  ordered.                                                                     
                                                                               
  Representative  Therriault  observed  that the  Subcommittee                 
  reduced  the  Public  Information  Center/Publications.   He                 
  noted that $220.2 thousand dollars  remain in the component.                 
  He stressed that the Subcommittee initially recommended that                 
  two of  the four  positions be  reduced.   One position  was                 
  restored.                                                                    
                                                                               
  Representative Martin questioned  the level of general  fund                 
  program  receipts  authorized  in  the  Public   Information                 
  Center/Publication in FY 95.  Mr. Bus explained that program                 
  receipts  are  used  to   pay  for  the  function   and  the                 
                                                                               
                               16                                              
                                                                               
                                                                               
  publication.    Program  receipts  from   the  sale  of  the                 
  publication is  used to fund  reprinting.  He  stressed that                 
  the  reduction   in  program  receipt   authorization  would                 
  jeopardize reprintings.   He maintained  that the  reduction                 
  would jeopardize the entire  concept of public service.   He                 
  stated that the  reduction would result  in the loss of  two                 
  positions.                                                                   
                                                                               
  Representative Martin spoke in support of additional funding                 
  for    the    Land     Development    Public     Information                 
  Center/Publications.    He  MOVED  to  divide  the question.                 
  There being  NO OBJECTION,  the amendment  was divided  into                 
  Amendment  DNR-5A, authorize  an addition of  $75.0 thousand                 
  dollars   in   general  fund   program  receipts   for  Land                 
  Development,    Public   Information    Center/Publications;                 
  Amendment   DNR-5B,   add   $154.0   thousand  dollars   for                 
  Information  Resource  Management   from  the   Agricultural                 
  Revolving Loan Fund.                                                         
                                                                               
  A  roll call vote was taken on the MOTION to adopt Amendment                 
  DNR-5A,  add  $75.0 thousand  dollars for  Land Development,                 
  Public Information Center/Publications.                                      
                                                                               
  IN FAVOR: Martin, Brown, Grussendorf, Navarre                                
  OPPOSED:  Kelly,  Kohring,   Mulder,  Parnell,   Therriault,                 
  Foster,        Hanley                                                        
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  In response to a question  by Representative Brown, Mr.  Bus                 
  explained  that  there was  a  reduction in  capital project                 
  receipts  as a  result of  the completion of  land selection                 
  projects.  He noted that some  projects were not included in                 
  the Governor's request.   He  observed that these  omissions                 
  will result in  a loss of  six positions.  The  Subcommittee                 
  reduction  will  result  in  the  loss of  three  additional                 
  positions.    He  stressed  that   the  loss  of  automation                 
  capability  will be  felt  throughout  resource programs  in                 
  mining, forest and land management.                                          
                                                                               
  Representative Brown spoke  in support of  Amendment DNR-5B.                 
  She maintained that  the level of  reduction is too deep  to                 
  keep the Department functioning in an efficient manner.                      
                                                                               
  A roll call vote was taken on  the MOTION to adopt Amendment                 
  DNR-5B.                                                                      
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kelly,  Kohring,   Martin,  Parnell,   Therriault,                 
  Foster,        Hanley                                                        
                                                                               
  Representative Mulder was absent from the vote.                              
                                                                               
                               17                                              
                                                                               
                                                                               
  The MOTION FAILED (3-4).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment DNR-6 (copy on                 
  file).  Representative Brown MOVED to AMEND Amendment DNR-6,                 
  amend   the   funding   source   to   delete   "Agricultural                 
  Development"  and  substitute  "Agricultural Revolving  Loan                 
  Fund".   She  noted  that $150.0  thousand dollars  would be                 
  transferred from the Agricultural Revolving Loan Fund to the                 
  General  Fund  and  from  the  General  Fund  to  Parks  and                 
  Recreation  Management.   The  amended amendment  would also                 
  delete  $100.0  thousand  dollars in  general  fund  program                 
  receipt authorization for  Parks and Recreation  Management.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Representative Brown noted that the amendment  was submitted                 
  on  behalf  of  Representative  Davies.     She  noted  that                 
  Representative Davies, who served on the Subcommittee,  felt                 
  that the authorized  level of program  receipt could not  be                 
  reached.  She summarized  that state parks are in  danger of                 
  being closed without the additional funding.  She maintained                 
  that the state park system is  the backbone of recreation in                 
  the areas they exist.                                                        
                                                                               
  Representative  Therriault noted  that  the intention  is to                 
  shift funding  from the General Fund to user fees.  He noted                 
  that the approved level of program receipt authority is only                 
  $50.0  thousand  dollars beyond  what  was requested  by the                 
  Department.                                                                  
                                                                               
  Mr. Bus noted that the Department is requesting $350.0                       
  thousand additional dollars for an enlarged park system.  He                 
  noted  that  construction money  was  approved for  many new                 
  parks to open.   The additional funding would staff  the new                 
  parks.  He  summarized that the Subcommittee  recommendation                 
  would  reduce   the  general  fund  contribution  by  $400.0                 
  thousand dollars.   He  emphasized that  park units will  be                 
  closed.  He added  that revenues will be lost in areas where                 
  parks are closed, since fees will  not be collected in these                 
  areas.  He stated  that the amendment would not  restore the                 
  total request.                                                               
                                                                               
  A roll call  vote was taken on the MOTION to adopt Amendment                 
  DNR-6.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Foster                                         
  OPPOSED:  Kelly,   Kohring,   Martin,    Navarre,   Parnell,                 
  Therriault,         Hanley                                                   
                                                                               
  Representative Mulder was absent from the vote.                              
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
                               18                                              
                                                                               
                                                                               
  Representative  Navarre  MOVED  to adopt  a  DNR-7  (copy on                 
  file).  The  amendment would  delete 150.0 thousand  dollars                 
  from the  Agricultural Revolving  Loan Fund  and add  $150.0                 
  thousand    dollars   to    Oil    and   Gas    Development,                 
  Leasing/Evaluation.                                                          
                                                                               
  Representative   Therriault   detailed   the  Subcommittee's                 
  actions.     Representative  Navarre  emphasized   that  the                 
  component enhances revenues to the state.                                    
                                                                               
  Mr. Bus noted that the reduction would result in the loss of                 
  2  to  3  positions.    He  emphasized  that  the  positions                 
  facilitate the preparations  of lease sales.   He maintained                 
  that lease sale offers will be slowed.                                       
                                                                               
  A roll call vote was taken on the MOTION to Amendment DNR-7.                 
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre, Parnell, Foster                       
  OPPOSED:  Kelly, Kohring, Martin, Therriault, Hanley                         
                                                                               
  Representative Mulder was absent from the vote.                              
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment DNR-8 (copy on                 
  file).    THe   amendment  would  reduce   the  Agricultural                 
  Revolving Loan Fund  by $1.24  million dollars and add $46.0                 
  thousand  dollars  to the  Public  Defender Agency  and $780                 
  thousand dollars  to  the Office  of Public  Advocacy.   She                 
  spoke in support of Amendment DNR-8.                                         
                                                                               
  A roll call vote was taken  on the MOTION to adopt Amendment                 
  DNR-8.                                                                       
                                                                               
  IN FAVOR: Brown, Foster                                                      
  OPPOSED:  Grussendorf,  Navarre,  Kelly,   Kohring,  Martin,                 
  Parnell,       Therriault, Hanley                                            
                                                                               
  Representative Mulder was absent from the vote.                              
                                                                               
  The MOTION FAILED (2-8).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment DNR-9 (copy on                 
  file).    She explained  that  the amendment  would transfer                 
  $200.0 thousand dollars from the Agricultural Revolving Loan                 
  Fund to the Department of Health & Social Services, Maternal                 
  Child  and  Family Health.    She  spoke in  support  of the                 
  amendment.                                                                   
                                                                               
  Co-Chair  Hanley observed  that the  Subcommittee authorized                 
  the addition of one of the three new sites requested  by the                 
                                                                               
                               19                                              
                                                                               
                                                                               
  Governor.                                                                    
                                                                               
  A roll call vote was taken on the MOTION to adopt  Amendment                 
  DNR-9.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Foster                                         
  OPPOSED:  Kelly,  Kohring,   Martin,  Parnell,   Therriault,                 
  Hanley                                                                       
                                                                               
  Representatives Navarre and Mulder were absent for the vote.                 
                                                                               
  Representative Brown  MOVED to adopt Amendment  DNR-10 (copy                 
  on  file).   The  amendment  would transfer  $100.0 thousand                 
  dollars  from  the  Agricultural  Revolving   Loan  Fund  to                 
  Administrative Services.                                                     
                                                                               
  (Tape Change, HFC 95-72, Side 1)                                             
                                                                               
  A roll call vote was taken on the MOTION to  adopt Amendment                 
  DNR-10.                                                                      
                                                                               
  IN FAVOR: Brown, Grussendorf                                                 
  OPPOSED:  Kelly, Kohring, Martin, Mulder,  Navarre, Parnell,                 
            Therriault, Foster, Hanley                                         
                                                                               
  The MOTION FAILED (2-9).                                                     
                                                                               
  Representative  Brown  WITHDREW  Amendment  DNR-11 (copy  on                 
  file).                                                                       
                                                                               
  DEPARTMENT OF FISH AND GAME                                                  
                                                                               
  Co-Chair Foster MOVED to adopt  amended Amendment FG-1 (copy                 
  on file).  The amendment would delete $75.0 thousand dollars                 
  from  the Department of Health &  Social Services, Office of                 
  Commissioner  and  delete  $91.2 thousand  dollars  from the                 
  Department of  Fish  and Game,  Commercial  Fisheries  Entry                 
  Commission;  and   add  $166.2  thousand  dollars   for  the                 
  Department of Fish and Game, Office of the Commissioner.  He                 
  noted  that  the   amendment  was   offered  on  behalf   of                 
  Representative Moses.  He spoke in support of the amendment.                 
                                                                               
  Representative Grussendorf spoke in support of the additions                 
  in the  amendment.    He  noted the  importance  of  funding                 
  positions  in  the  Commissioner's  Office  which  represent                 
  Alaska  in  treaty  negotiations  with  Canada  and   during                 
  deliberations on the Magnusom Act.  He questioned the effect                 
  of the reductions.                                                           
                                                                               
  FRANK  HOMAN,  COMMISSIONER,   COMMERCIAL  FISHERIES   ENTRY                 
  COMMISSION   explained  that  the   Commission  has  lost  8                 
  positions  in  the  past 8  years.    He  stressed that  the                 
                                                                               
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  Commission has received  a maintenance level budget  for the                 
  past   three   years.     He   emphasized  that   the  three                 
  commissioners are administrative  law judges  that sit as  a                 
  tribunal for appeals on  limited entry permits.  There  is a                 
  backlog of  800 cases  awaiting adjudication.   He  stressed                 
  that  the  effect  of  the reduction  would  result  in  the                 
  elimination of 2  to 3  positions.  He  emphasized that  the                 
  Commission brings in revenue.                                                
                                                                               
  Co-Chair Foster MOVED to AMEND Amendment DNR-1, delete $35.0                 
  thousand  dollars  from the  Department  of Health  & Social                 
  Services, Office  of Commissioner and delete  $46.0 thousand                 
  dollars from  the Department  of Fish  and Game,  Commercial                 
  Fisheries Entry Commission;  and add $81.0 thousand  dollars                 
  for  the  Department  of  Fish   and  Game,  Office  of  the                 
  Commissioner.                                                                
                                                                               
  Mr. Homan stated that the reduction would result in the loss                 
  of a hearing officer or two licensing personnel.                             
                                                                               
  Representative  Grussendorf  expressed   concern  with   the                 
  reduction to the Commercial Fisheries Entry Commission.  Co-                 
  Chair Hanley noted that the Commission has gradually reduced                 
  the backlog.                                                                 
  There being NO  OBJECTION, the  amendment to Amendment  FG-1                 
  was adopt.   There being  NO OBJECTION,  Amendment FG-1  was                 
  adopted.                                                                     
                                                                               
  Representative Grussendorf WITHDREW Amendment FG-2 (copy  on                 
  file).                                                                       
                                                                               
  Representative  Grussendorf MOVED  to  adopt Amendment  FG-3                 
  (copy on  file).   The amendment  would restore  the funding                 
  level  for  the  Division  of  Habitat to  $1990.0  thousand                 
  dollars.  He  observed that  the Division was  reduced by  a                 
  third  of  their budget.   He  noted  that offices  would be                 
  closed in Ketchikan and Sitka.                                               
                                                                               
  Representative Mulder MOVED to AMEND Amendment FG-3,  delete                 
  $200.0 thousand dollars from the Subsistence BRU, Department                 
  of Fish  and Game  and add  $200.0 thousand  dollars to  the                 
  Division of Habitat.  The Division of Habitat will be funded                 
  at $1620.0 million dollars.  Co-Chair Foster OBJECTED.                       
                                                                               
  A roll call vote was taken on  the MOTION to amend Amendment                 
  FG-3.                                                                        
                                                                               
  IN FAVOR: Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Navarre, Hanley                                          
  OPPOSED:  Brown, Grussendorf, Foster                                         
                                                                               
  The MOTION PASSED (8-3).                                                     
                                                                               
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  Representative Grussendorf expressed concern with the  level                 
  of funding for the Division of Habitat.                                      
                                                                               
  A roll call vote  was taken on the MOTION to adopt Amendment                 
  FG-3.                                                                        
                                                                               
  IN FAVOR: Grussendorf,  Navarre,  Kelly,   Kohring,  Martin,                 
  Mulder,        Parnell, Therriault, Hanley                                   
  OPPOSED:  Brown, Foster                                                      
                                                                               
  The MOTION PASSED (9-2).                                                     
                                                                               
  Representative  Grussendorf MOVED  to  adopt Amendment  FG-4                 
  (copy on file).  The amendment would transfer $29.6 thousand                 
  dollars  from  Fisheries  Management  and appropriate  $29.6                 
  thousand  dollars  to  the Yukon  River  Drainage  Fisheries                 
  Association.                                                                 
                                                                               
  REPRESENTATIVE  IRENE  NICHOLIA  spoke  in  support  of  the                 
  amendment.    She  emphasized  that the  Association  allows                 
  different  interest groups  to work  cooperatively  with the                 
  Department of  Fish and  Game to  assist  in addressing  the                 
  declining fall chum fisheries.                                               
                                                                               
  Co-Chair Hanley noted  that this grant was  eliminated along                 
  with other designated grants in  the Department of Community                 
  and Regional Affairs.                                                        
                                                                               
  A roll call vote was taken on the MOTION to  adopt Amendment                 
  FG-4.                                                                        
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre, Foster                                
  OPPOSED:  Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Hanley                                                   
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  DEPARTMENT OF PUBLIC SAFETY                                                  
                                                                               
  Representative Brown  WITHDREW  Amendment    PS-1  (copy  on                 
  file).                                                                       
                                                                               
  Representative Brown  MOVED  to adopt  Intent Language  PS-1                 
  (copy  on file).   She  explained  that the  intent language                 
  would require  those entities  which have  police powers  to                 
  utilize  local police  departments  for  routine patrol  and                 
  investigative  services.   Representative Mulder,  and Kelly                 
  spoke in support of Intent Language PS-1.                                    
                                                                               
  Representative Parnell noted that the intent  language would                 
  not  cover  the Anchorage  Hillside area.    He felt  it was                 
                                                                               
                               22                                              
                                                                               
                                                                               
  inappropriate  to  enact  policy  through  intent  language.                 
  Discussion ensued regarding  the effect  of the language  on                 
  the Hillside area of Anchorage.                                              
                                                                               
  A roll call  vote was  taken on the  MOTION to adopt  Intent                 
  Language PS-1.                                                               
                                                                               
  IN FAVOR: Brown,   Grussendorf,   Navarre,   Kelly,  Martin,                 
  Mulder,        Hanley, Foster                                                
  OPPOSED:  Parnell, Therriault, Kohring                                       
                                                                               
  The MOTION PASSED (8-3).                                                     
                                                                               
  Intent Language PS-2 was WITHDRAW.                                           
                                                                               
  DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                           
                                                                               
  Co-Chair  Hanley  MOVED to  adopt  Amendment DOT-1  (copy on                 
  file).  He  explained that the amendment would transfer $1.0                 
  million dollars from the Storage Tank Assistance Fund to the                 
  Department   of   Transportation   and  Public   Facilities,                 
  Statewide  Maintenance  and   Operations.     Representative                 
  Grussendorf  questioned if the  Alaska Marine Highway System                 
  would be included.   Co-Chair Hanley stated  that the Alaska                 
  Marine Highway  System is  not included  in this  component.                 
  Representative  Grussendorf stressed  the  need for  further                 
  funding to the Alaska Marine Highway System.                                 
                                                                               
  Representative Navarre spoke in support of the amendment.                    
                                                                               
  Representative Brown noted  that the money would  be deleted                 
  from front section 20 (b).   Co-Chair Hanley noted the money                 
  transfer would be through the General Fund.                                  
                                                                               
  There being NO OBJECTION, a DOT-1 was adopted.                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 6:53 p.m.                                           
                                                                               
                                                                               
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