Legislature(1995 - 1996)

05/04/1996 11:50 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                           MAY 4, 1996                                         
                           11:50 P.M.                                          
                                                                               
  TAPE HFC 96 - 164, Side 1, #000 - end.                                       
  TAPE HFC 96 - 164, Side 2, #000 - end.                                       
  TAPE HFC 96 - 165, Side 1, #000 - end.                                       
  TAPE HFC 96 - 165, Side 2, #000 - end.                                       
  TAPE HFC 96 - 166, Side 1, #000 - end.                                       
  TAPE HFC 96 - 166, Side 2, #000 - #573.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley  called the  House  Finance Committee                 
  meeting to order at 11:50 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 Carl  Moses; Representative Scott  Ogan; John                 
  Walsh,  Staff, Representative  Richard Foster;  Fred Fisher,                 
  Fiscal Analyst, Legislative  Finance Division; Kelly  Huber,                 
  Staff, Senator  Rick Halford;  Annalee McConnell,  Director,                 
  Office of  Management and  Budget, Office  of the  Governor;                 
  Brett  Huber,  Staff,  Senator  Lyda  Green;  Nancy  Slagle,                 
  Director, Division of  Budget Review,  Office of  Management                 
  and  Budget; Gary  Hayden, System  Director,  Marine Highway                 
  System, Department of Transportation  and Public Facilities;                 
  Chris  Clark, Staff,  Representative Carl  Moses; Nico  Bus,                 
  Director, Division of Administrative Services, Department of                 
  Natural  Resources;  Janet  Clarke,  Director,  Division  of                 
  Administrative  Services, Department  of  Health and  Social                 
  Services; Thomas  Bringham, Director, Division  of Statewide                 
  Planning,   Department   of   Transportation    and   Public                 
  Facilities; Laurie  Otto, Deputy Attorney  General, Criminal                 
  Division,  Department  of  Law;  Richard  Pegues,  Director,                 
  Administrative  Services  Division, Department  of  Law; Sam                 
  Kito, III, Legislative Liaison, Special Assistant, Office of                 
  the  Commissioner, Department  of Transportation  and Public                 
  Facilities; John Bitney, Alaska Housing Finance Corporation,                 
  Department of  Revenue; Karen Rehfeld, Director, Division of                 
  Administrative  Services,  Department   of  Education;   Tom                 
  Wright,  Staff,  Representative  Ivan  Ivan;  Tim  Sullivan,                 
                                                                               
                                1                                              
                                                                               
                                                                               
  Alaska  Craftsman  Home   Program,  Anchorage   Homebuilders                 
  Association, Anchorage; Daniel  Fauske, Executive  Director,                 
  Alaska Housing Finance Division, Department of Revenue.                      
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 500    An Act  making capital  and other  appropriations;                 
            and providing for an effective date.                               
                                                                               
            HB  500   was  HELD   in  Committee   for  further                 
            consideration.                                                     
  HB 541    An Act  providing  for  the  issuance  of  general                 
            obligation bonds in the amount of $148,500,000 for                 
            the  purpose  of  paying the  cost  of  design and                 
            construction of state correctional facilities; and                 
            providing for an effective date.                                   
                                                                               
            HB 541  was postponed  for a  hearing at a  latter                 
            date.                                                              
  SB 136    An Act making  appropriations for capital  project                 
            matching grant  funds  and  to  capitalize  funds;                 
            making,    amending,    and    repealing   capital                 
            appropriations;  and  providing  for an  effective                 
            date.                                                              
                                                                               
            HCS CS  SB  136  (FIN)am (brf  sup  maj  fld)  was                 
            reported  out   of  Committee  with  a  "do  pass"                 
            recommendation.                                                    
  SB 141    An  Act   relating  to  legislative   ethics;  and                 
            providing for an effective date.                                   
                                                                               
            SB 141  was postponed for  a hearing  at a  latter                 
            date.                                                              
  SB 152    An Act  relating to  geographic differentials  for                 
            the salaries  of certain state  employees who  are                 
            not  members  of  a  collective  bargaining  unit;                 
            relating   to   periodic   salary    surveys   and                 
            preparation  of an  annual pay  schedule regarding                 
            certain state employees; relating to certain state                 
            aid calculations based on geographic differentials                 
            for state employee salaries;  and providing for an                 
            effective date.                                                    
                                                                               
            SB  152 was postponed  for a  hearing at  a latter                 
            date.                                                              
  SB 215    An  Act   streamlining  the  functions   of  state                 
            government, including authorizing the commissioner                 
                                                                               
                                2                                              
                                                                               
                                                                               
            of  fish  and  game to  award  grants  for certain                 
            resource activities; allowing agents  selling fish                 
            and  game  licenses  and tags  to  retain  certain                 
            compensation; authorizing the Department of Health                 
            and Social  Services to  award grants  for certain                 
            services for developmentally  delayed or  disabled                 
            children;   relating   to   rabies   control   and                 
            administration of flour and bread standards by the                 
            Department    of    Environmental    Conservation;                 
            repealing the Athletic Commission,  the regulation                 
            of boxing  and  wrestling,  the  certification  of                 
            professional geologists, and  the Water  Resources                 
            Board;  repealing  certain  filing statements  and                 
            bonds for  enforcement and  collection of  certain                 
            taxes; and providing for an effective date.                        
                                                                               
            SB 215  was postponed for  a hearing  at a  latter                 
            date.                                                              
  SB 270    An  Act  relating to  juveniles;  relating to  the                 
            jurisdiction of  juvenile courts; relating  to the                 
            release  of  juveniles;  and  relating to  records                 
            concerning juveniles.                                              
                                                                               
            SB 270 was  postponed for  a hearing  at a  latter                 
            date.                                                              
  SCR 23    Relating to long range financial planning.                         
                                                                               
            SCR  23 was postponed  for a  hearing at  a latter                 
            date.                                                              
  SENATE BILL 136                                                              
                                                                               
       "An  Act  making  appropriations  for  capital  project                 
       matching grant funds and  to capitalize funds;  making,                 
       amending,  and  repealing  capital appropriations;  and                 
       providing for an effective date."                                       
                                                                               
  HOUSE BILL 500                                                               
                                                                               
       "An Act making  capital and  other appropriations;  and                 
       providing for an effective date."                                       
                                                                               
  Co-Chair  Hanley  explained  that there  were  five  deleted                 
  sections  from  the  proposed  house  bill included  in  the                 
  handout titled Amendment  to 2D CS SB 163  (FIN) am (brf sup                 
  maj  fld).   [Copy on file].   The section  numbers are #36,                 
                                                                               
  JOHN  WALSH, STAFF, REPRESENTATIVE  RICHARD FOSTER, spoke to                 
  the differences between the two bills.  The changes occur in                 
                                                                               
                                3                                              
                                                                               
                                                                               
  Section #2(a), adding  a citation reference for the City and                 
  Borough of  Sitka high  school project.   Section  #7 has  a                 
  language  change,  recommended  by  the  sponsor  and  would                 
  include Hanshah Junior  High School.  He  continued, Section                 
  Municipality  of  Anchorage,   replacing  the  "G"  version.                 
  Section #11(c) would provide for a new reference funding for                 
  the Special Olympic citation.  Section #22(b) will provide a                 
  new title; Section #26(b) changes the lapse date.                            
                                                                               
  Section #27(e)  also changes  a lapse  date; Section  #32(a)                 
  would  delete  a  reference  to  AS  18.26.260.   Mr.  Walsh                 
  summarized  that  Sections  #43  (a,  b,  c,  d  &  e)  were                 
  replacements from the previous  draft.  Section #51 (a,  b &                 
  c) provide new inserts.   Sections #53 through #60  would be                 
  new sections.                                                                
                                                                               
  Representative  Brown  declared  a  "conflict  of  interest"                 
  noting that she is a Special  Olympics board member and that                 
  they  have several reappropriations included in the proposed                 
  legislation.  Representative  Mulder echoed that he  too sat                 
  on that board.                                                               
                                                                               
  Representative Brown referenced Page  4, Line 30, requesting                 
  "and   software"   be   inserted    following   "computers".                 
  Representative  Martin  asked  if  there  was  a  difference                 
  between  needing a computer versus software.  Representative                 
  Brown  replied  that the  proposed  plan would  allocate $12                 
  thousand  dollars  for  computer equipment  and  $3 thousand                 
  dollars for software.   Representative Brown MOVED  to adopt                 
  the amendment.  There being NO OBJECTION, it was adopted.                    
                                                                               
  Representative Brown referenced Section  #18, Page 8, asking                 
  who  requested  the statewide  reappropriation.   Mr.  Walsh                 
  explained  that  amendment  was  requested   by  the  Mat-Su                 
  delegation.   The  original appropriation  had  been general                 
  fund dollars.                                                                
                                                                               
  Representative Navarre noted that the appropriation had been                 
  made  in  1989  and  was  not  extended.    Co-Chair  Hanley                 
  understood that  if any  of the  funds had  been spent,  the                 
  appropriation would then  an ongoing  appropriation, with  a                 
  five year lapse for capital projects.                                        
                                                                               
  FRED FISHER,  FISCAL ANALYST, LEGISLATIVE  FINANCE DIVISION,                 
  interjected that  capital appropriations do  not lapse until                 
  the project is completed.                                                    
                                                                               
  KELLY HUBER, STAFF, SENATOR RICK HALFORD, clarified that the                 
  Department of  Transportation and Public  Facilities (DOTPF)                 
  had  contacted Senator Halford  and Senator  Green informing                 
  them   that   the   project  had   been   completed.     The                 
                                                                               
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  reappropriation request  was submitted  with those  projects                 
  included.                                                                    
                                                                               
  Representative  Navarre  questioned   when  a  project   was                 
  completed, how were  the remaining  funds distributed.   Mr.                 
  Fisher explained that the agency  should lapse the remaining                 
  funds back into the general fund.                                            
                                                                               
  Representative  Brown  elaborated  that it  has  not  been a                 
  policy in the  past to have individual  district delegations                 
  reappropriating  statewide pieces  within  the budget.   Co-                 
  Chair Hanley reiterated that DOTPF had made the request.                     
                                                                               
  ANNALEE MCCONNELL,  DIRECTOR,  DIVISION  OF  MANAGEMENT  AND                 
  BUDGET,  OFFICE   OF  THE   GOVERNOR,  offered  to   provide                 
  information regarding the request.                                           
                                                                               
  BRETT  HUBER,  STAFF, SENATOR  LYDA  GREEN, agreed  that the                 
  projects had been  submitted by DOTPF  as referenced in  the                 
  back-up materials.   He added,  Senator Green's office  then                 
  asked which projects would be  appropriate for the remaining                 
  funds.  The Department,  through Margaret Holland's  office,                 
  contacted Senator Green's  office with  a list of  suggested                 
  projects.                                                                    
                                                                               
  Representative Brown questioned the  expenditures referenced                 
  on  Page 11, Line 6.  Representative Therriault replied that                 
  those funds represented a portion of the past capital budget                 
  monies for the  Interior delegation.  The  proposed language                 
  would broaden the  scope so as  to make a purchase  from the                 
  Monroe foundation.   Co-Chair Hanley  commented that he  had                 
  prepared an amendment to correct  that.  Discussion followed                 
  among Committee members regarding Section #22.                               
                                                                               
  Representative Brown spoke to Section #23.                                   
                                                                               
  JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT  OF HEALTH  AND SOCIAL  SERVICES, explained  that                 
  last year, there was a  section in the reappropriation  bill                 
  similar to the request included in Section #23.  Those funds                 
  had been appropriated to "other" items last year, discovered                 
  when Senator Miller's office contacted  the Department.  The                 
  request  would  not change  from  last year,  although would                 
  reverse the decision.  The language was too broad last year.                 
                                                                               
                                                                               
  Representative  Brown  spoke  to   Section  #32,  Page  #17,                 
  questioning why the reappropriation continued.                               
                                                                               
  CHRIS CLARKE,  STAFF, REPRESENTATIVE  CARL MOSES,  explained                 
  that there had  been $28 thousand dollars  remaining in that                 
  account.     Mr.   Clarke  understood   that  the   original                 
                                                                               
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  reappropriation     was     a     district    appropriation.                 
  Representative Brown reiterated her concern with  individual                 
  legislators  reappropriating  money  from  the  department's                 
  statewide projects.   She asked if DOT&PF  had been involved                 
  in that decision.  Mr. Clarke replied that Senator Hoffman's                 
  office had been advised.                                                     
                                                                               
  Representative  Brown  spoke  to   Page  19,  Section   #35,                 
  appropriation to the  Legislative Council.  Mr.  Walsh noted                 
  that  the  request  had originated  within  the  Legislative                 
  Council.                                                                     
                                                                               
  Representative   Brown   asked    the   total   amount    of                 
  reappropriation   funding   included    in   the    proposed                 
  legislation.  Mr. Walsh thought  it was around $800 thousand                 
  dollars.                                                                     
                                                                               
  In  response  to Representative  Brown's  query to  Page 20,                 
  Section #41,  Mr. Walsh  advised that  the request had  been                 
  provided by Representative Williams and Senator Taylor.                      
                                                                               
  GARY  HAYDEN,  SYSTEM   DIRECTOR,  MARINE  HIGHWAY   SYSTEM,                 
  DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,  advised                 
  that the appropriation  came from the Alaska  Marine Highway                 
  Fund.  The building currently  being used for administrative                 
  functions is  being considered by  the City  and Borough  of                 
  Juneau (CBJ)  for school  expansion.   Representative  Brown                 
  asked  if  DOTPF supported  the  appropriation.   Mr. Hayden                 
  stated they did not.                                                         
                                                                               
  Representative   Brown   MOVED   to   delete  Section   #41.                 
  Representative Kelly OBJECTED.                                               
                                                                               
  Co-Chair Hanley recommended  deleting questionable  sections                 
  on  the House Floor.  Representative  Brown pointed out that                 
  generally  amendments  to  an  appropriation  bill  are  not                 
  allowed  on  the floor.    She asked  the  policy originally                 
  intended  for  submitting  a  reappropriation.    Mr.  Walsh                 
  informed Committee members that a  memo had been circulated,                 
  requesting that the reappropriation  request stay within the                 
  districts appropriations.  Representative Brown WITHDREW the                 
  MOTION to amend, agreeing to making  the motion on the House                 
  floor.  There being NO OBJECTION, it was withdrawn.                          
                                                                               
  Representative Navarre  MOVED to  delete Section  #41.   Co-                 
  Chair Hanley responded  that he  supported deletions to  any                 
  individual legislators statewide recommendations.   Co-Chair                 
  Hanley  questioned other  sections of the  legislation which                 
  addressed those  concerns.  Mr. Walsh noted  Section #53 was                 
  one.  Representative  Navarre WITHDREW the MOTION  to delete                 
  Section #41.   Co-Chair Hanley perused the  bill for similar                 
  reappropriation requests.                                                    
                                                                               
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  Mr. Walsh added that Section #42 was an authority fund which                 
  has not been used to date.                                                   
                                                                               
  (Tape Change, HFC 96-164, Side 2).                                           
                                                                               
  Representative Brown asked who sponsored the reappropriation                 
  requested in  Section #43.   Ms. McConnell spoke  to Section                 
  a plan for the advocacy opening  ANWR.  She recommended that                 
  Section (e) be removed.                                                      
                                                                               
  Representative   Navarre   questioned  Section   #44(b)  and                 
  requested  a  list of  those  expenditures.   Representative                 
  Brown advised  that Section  #44 (a)  & (b)  were unrelated.                 
  Mr. Walsh responded that the sponsor had requested that they                 
  be submitted together.                                                       
                                                                               
  Representative Brown  referenced Section #47 and  asked what                 
  was meant by  "agency realignment and  space consolidation".                 
  Mr.  Walsh  deferred that  question to  Legislative Affairs.                 
  Co-Chair Hanley commented  that the  lease on the  Goldstein                 
  Building was about the expire.                                               
                                                                               
  Representative  Mulder  noted  that  he  had  requested that                 
  Section #48 be added in order to provide greater flexibility                 
  to  the  Department   of  Corrections  for   more  efficient                 
  operation.   He  pointed out  that the  Department  had been                 
  allowed  a  carry forward  from  last year.   Representative                 
  Brown  questioned  limiting  the  use  of  those  funds  for                 
  community  residential  centers.     Representative   Mulder                 
  replied that decision would match considerations made by the                 
  Criminal Justice cabinet  to encourage half way  house beds.                 
  Ms. McConnell interjected  that the Department  would prefer                 
  not  to  have the  restriction  recommended in  Section #48,                 
  requesting instead the carry-forward.                                        
                                                                               
  Representative Mulder  MOVED to  WITHDRAW Section  #53.   He                 
  stated that he  had been misinformed regarding  the projects                 
  which that money could be used for.                                          
                                                                               
  Representative  Brown  referenced Section  #54.    Mr. Walsh                 
  stated  those  funds  would  be  used by  Alaska  Industrial                 
  Development and Export Authority (AIDEA) for  development of                 
  a mine near Crooked  Creek.   Ms. McConnell stated  that the                 
  Administration does not support the request; the bond rating                 
  has not  gone through  the normal  process.   Representative                 
  Brown added  that  Section #54  does  not fit  the  proposed                 
  policy and is not a reappropriation.                                         
                                                                               
  Representative Navarre  questioned the inclusion  of Section                 
                                                                               
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  this in conjunction with Representative Green.                               
                                                                               
  NICO  BUS, DIRECTOR,  DIVISION  OF ADMINISTRATIVE  SERVICES,                 
  DEPARTMENT OF NATURAL RESOURCES, stated  that this was AOGGC                 
  money; at the time that it  was appropriated, AOGGC was part                 
  of    the   Department    of   Natural    Resources   (DNR).                 
  Representative  Therriault  understood that  the  funds were                 
  still in DNR  budget, having not  been spent for two  years.                 
  Ms.  McConnell advised that  all departments are responsible                 
  to report to OMB regarding lapsed fund amounts.                              
                                                                               
  Co-Chair Hanley  asked Representative Therriault  if back-up                 
  was available  indicating that  Section #22  was a  district                 
  appropriation request.                                                       
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND BUDGET, OFFICE OF  THE GOVERNOR, commented on                 
  the  proposed  amended  legislation.    She  explained  that                 
  Sections  #30  &  #31  address  communities in  the  capital                 
  matching grants  program.  She  noted that the  language had                 
  been duplicated.  Section #34 would provide for extension of                 
  the lapse date on the Science and Technology grants.                         
                                                                               
  Co-Chair  Hanley  recommended  incorporating  the  discussed                 
  amendment to  2D  CS SB  136  (FIN) am  (brf  sup maj  fld),                 
  deleting Sections #18, #32(b), #41, #42, #53, #54, #55, #31,                 
                                                                               
  Representative  Parnell MOVED  to  adopt  Amendment  #1,  9-                 
  GH2034\G.7, Cramer, 5/2/96,  which would reappropriate money                 
  within  the Anchorage  school districts  to Taku  Elementary                 
  School.  [Copy on file].   There being NO OBJECTION, it  was                 
  adopted.                                                                     
                                                                               
  Representative  Martin  MOVED  to  adopt  Amendment  #2,  9-                 
  GH2034\M.2,  Cramer, 5/4/96,  appropriating  money from  the                 
  Ptarmigan Elementary safety zone light  to the Department of                 
  Administration.  [Copy on file].   There being NO OBJECTION,                 
  it was adopted.                                                              
                                                                               
  (Tape Change HFC 96-165, Side 1).                                            
                                                                               
  Ms.  Slagle spoke  to Amendment  #3.   [Copy on file].   The                 
  funds  would be  used  for the  back-log  of "other"  cases,                 
  addressed in  Subsections  (a) &  (b).   The  Department  of                 
  Commerce and  Economic Development (DCED)  has requested  an                 
  extension for program receipt  authorization.  She indicated                 
  that the two sections had been added  through the Governor's                 
  Office to assist the Division  of Elections equipment needs.                 
                                                                               
                                                                               
  Representative Martin MOVED to  adopt Amendment #3.    There                 
                                                                               
                                8                                              
                                                                               
                                                                               
  being NO OBJECTION, it was adopted.                                          
                                                                               
  Representative  Therriault  MOVED  to  adopt  Amendment  #4.                 
  [Copy on file].   Co-Chair Hanley OBJECTED because it  was a                 
  regional district appropriation.   Representative Therriault                 
  provided   the  Committee  with  a  handout  explaining  the                 
  amendment.  [Copy on file].                                                  
                                                                               
  THOMAS BRINGHAM,  DIRECTOR, DIVISION OF  STATEWIDE PLANNING,                 
  DEPARTMENT OF TRANSPORTATION  AND PUBLIC FACILITIES,  stated                 
  that the  effect of the  amendment would delay  the Whittier                 
  project  by  approximately  one  year.   He  added  that the                 
  Department does not  support the  reallocation.  Two  design                 
  contracts  have  gone to  bid.   Approximately,  $25 million                 
  dollars  of  ISTEA  money  is  available  for  the  project.                 
  Representative  Therriault spoke in  support of Amendment #4                 
  and  provided  an  in  depth  analysis of  the  accompanying                 
  material.                                                                    
                                                                               
  Representative Kohring  voiced  support  for  Amendment  #4,                 
  pointing  out  that   it  would  provide  for   repairs  and                 
  renovations  to school  facilities throughout  the  State of                 
  Alaska.                                                                      
                                                                               
  Mr.  Bringham  noted  that  the  amendment  would  implement                 
  impacts to the  Department by  delaying construction on  the                 
  Whittier Road, depleting that account by $2 million dollars.                 
  Those funds would  need to be  replaced with highway  funds.                 
  Other   projects    would   then   have   to   be   delayed.                 
  Representative Therriault suggested that he would be willing                 
  to reduce  the requested amount from $10  million dollars to                 
  $5  million  dollars  in order  to  make  the  project work.                 
  Representative Therriault  MOVED to cut the  amount proposed                 
  in Amendment #4 in half.  Representative Martin OBJECTED.                    
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Parnell, Therriault, Kelly.                              
       OPPOSED:       Navarre,  Brown,  Grussendorf,  Kohring,                 
                      Martin, Mulder, Hanley, Foster.                          
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  A roll call was taken on the MOTION to adopt Amendment #4.                   
                                                                               
       IN FAVOR:      Therriault, Kelly, Kohring, Navarre.                     
       OPPOSED:       Parnell,  Brown,   Grussendorf,  Martin,                 
                      Mulder, Foster, Hanley.                                  
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Brown explained that Amendment #5 was part of                 
                                                                               
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  the  Governor's  capital  budget  request  and is  a  "high"                 
  priority of the  Administration.  Ms. McConnell  agreed that                 
  the   amendment  was   the   "highest   priority"  for   the                 
  Administration of items which currently  are not included in                 
  the budget draft.  Ms. Clarke added that construction of the                 
  Johnson Youth Center Treatment Unit was also a high priority                 
  for   the   Department  of   Health  and   Social  Services.                 
  Representative Grussendorf pointed out that the facility has                 
  only  eight  beds   and  the  amendment  would   provide  an                 
  additional twenty beds.                                                      
                                                                               
  Representative Brown MOVED to adopt  Amendment #5.  Co-Chair                 
  Hanley OBJECTED.                                                             
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Therriault, Brown, Grussendorf, Navarre.                 
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Hanley, Foster.                                          
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Brown spoke to Amendment #6.  [Copy on file].                 
  Amendment #6 would  provide a deletion to  the Department of                 
  Fish  and Game's,  "Trapper,  hunter education  material and                 
  newsletter"  component.    She noted  that  the  Legislature                 
  appropriated $200  thousand dollars  in FY95  for a  similar                 
  project.  Representative Therriault noted  that the existing                 
  video does not cover the same  concepts proposed for the new                 
  video.  Representative  Brown pointed  out that the  request                 
  had been added  to the budget  proposal on the Senate  side.                 
  Representative  Kelly corrected  that  the request  had been                 
  submitted   by   the   Department    of   Fish   and   Game.                 
  Representative  Grussendorf  noted  that  the Department  is                 
  trying to educate trappers to use  more humane ways of catch                 
  and kill.                                                                    
                                                                               
  Representative  Brown   MOVED   to   adopt   Amendment   #6.                 
  Representative Grussendorf OBJECTED.                                         
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Martin.                                           
       OPPOSED:       Grussendorf,  Kelly,   Kohring,  Mulder,                 
                      Navarre,  Parnell,  Therriault,  Hanley,                 
                      Foster.                                                  
                                                                               
  The MOTION FAILED (2-9).                                                     
                                                                               
  Representative Brown  MOVED to adopt Amendment #7.  [Copy on                 
  file].  Co-Chair Hanley OBJECTED.                                            
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  LAURIE  OTTO,  DEPUTY ATTORNEY  GENERAL,  CRIMINAL DIVISION,                 
  DEPARTMENT OF  LAW, stated that  funding Amendment #7  was a                 
  high priority for the Administration,  included in a set  of                 
  revenue bonds.   The criminal  justice system is  completely                 
  dependant on  computerized records.  Systems  currently used                 
  are  obsolete; she emphasized many departments are dependent                 
  upon the system for accurate records.                                        
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf.                             
       OPPOSED:       Kohring,   Martin,    Mulder,   Parnell,                 
                      Therriault, Kelly, Foster, Hanley.                       
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment #8.   [Copy on                 
  file].  She  understood that people  living in that area  do                 
  not want the  highway paved; the  amendment would provide  a                 
  deletion  to  the  expenditure  requested.    Representative                 
  Therriault  pointed out that  the project had  been added on                 
  the Senate  side.  The Commissioner has  indicated that only                 
  one  of the  projects could  be completed.   Co-Chair Hanley                 
  OBJECTED.                                                                    
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Therriault, Brown, Grussendorf,                 
                      Kohring.                                                 
       OPPOSED:       Martin, Mulder, Parnell, Hanley, Foster.                 
                                                                               
  Representative Kelly was not present for the vote.                           
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  (Tape Change HFC 96-166, Side 2).                                            
                                                                               
  Amendment  #9  compiles  requests  from  the Office  of  the                 
  Governor, Division of Budget Review.  [Copy on file].                        
                                                                               
  Ms.   Slagle   stated  that   Section   #1,  Department   of                 
  Administration (DOA) was a resubmitted request in the amount                 
  of  $95  thousand dollars  for  the public  defender agency.                 
  Section #2, also, was a resubmission which had  been removed                 
  on the Senate  floor.  The change  would be a funding  shift                 
  for payment to  revenue sharing for a Native village, Kluti-                 
  Kaah.                                                                        
                                                                               
  Section  #3  would  provide  $500 thousand  dollars  program                 
  receipts to pay for raw materials and other related costs of                 
  the correctional industries program.                                         
                                                                               
                                                                               
                               11                                              
                                                                               
                                                                               
  Section #4, a  new request, would  provide for $50  thousand                 
  dollars in program receipts for  payment of additional costs                 
  to  the State museum  programs.   Section #5,  Department of                 
  Law,  (a)  provides for  a  listing of  judgments previously                 
  submitted by the Department.  Subsections  (b) & (c) are new                 
  requests by the Department of Law.  Co-Chair Hanley asked if                 
  these  were  judgments or  settlements  pending  against the                 
  State.                                                                       
                                                                               
  RICHARD PEGUES, DIRECTOR, ADMINISTRATIVE  SERVICES DIVISION,                 
  DEPARTMENT OF LAW,  replied that they were  both settlements                 
  and judgments; most  of the accounts are  accruing interest.                 
  He  added   that   settlements   are   contingent   on   the                 
  appropriation.                                                               
                                                                               
  Representative Navarre  asked  if Subsection  (c)  had  been                 
  settled.    Ms.  McConnell  responded  that  section  was  a                 
  repeated  request for  Alaska  Legal Services.    Discussion                 
  followed  between  Ms.   McConnell  and  Committee   members                 
  regarding Alaska Legal Services.                                             
                                                                               
  Ms.   Slagle  noted   that   Section   #6,   Department   of                 
  Transportation  and Public Facilities  (DOT&PF) was a repeat                 
  of the Copper  River highway  restoration request.   Section                 
  University contracts.   Section  #8 addresses  miscellaneous                 
  claims and Section #9 provides for the ratification.                         
                                                                               
  Co-Chair  Hanley suggested  moving  all  the  new  sections;                 
  Section #3, Section #4, Section #5 (a) & (b), Section #8 and                 
  Section #9.                                                                  
  Representative Mulder  MOVED the language  referenced by Co-                 
  Chair Hanley.   There being  NO OBJECTION, the  new sections                 
  were adopted into the supplemental budget request.                           
                                                                               
  Co-Chair  Hanley MOVED TO RESCIND action on failure to adopt                 
  Section #4(b).   There being NO OBJECTION, it was rescinded.                 
  Co-Chair Hanley MOVED to delete  Section #4(b).  There being                 
  NO OBJECTION, it was deleted.                                                
                                                                               
  Representative Brown  MOVED to  adopt  Section #7,  contract                 
  language  for  the University  of  Alaska.   Co-Chair Hanley                 
  OBJECTED.      Following   discussion    on   the   contract                 
  negotiations, Representative  Brown WITHDREW  the MOTION  to                 
  move Section #7.                                                             
                                                                               
  Representative  Navarre MOVED  to  adopt  Section 5(c),  the                 
  Department of  Law request  for expanded  funding to  Alaska                 
  Legal Services.  Representative Mulder OBJECTED.                             
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
                                                                               
                               12                                              
                                                                               
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf, Foster.                     
       OPPOSED:       Mulder,   Parnell,  Therriault,   Kelly,                 
                      Kohring, Martin, Hanley.                                 
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Brown MOVED  to adopt Section #1,  Department                 
  of Administration request for the public defender.  Co-Chair                 
  Hanley OBJECTED.                                                             
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf, Foster.                     
       OPPOSED:       Mulder,   Parnell,  Therriault,   Kelly,                 
                      Kohring, Martin, Hanley.                                 
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative  Navarre  MOVED  to  adopt  Section  #2  (2),                 
  Department  of   Community  and  Regional   Affairs  (DCRA),                 
  Municipal Revenue Sharing.  Co-Chair Hanley OBJECTED.                        
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre, Foster.                     
       OPPOSED:       Parnell,  Therriault,   Kelly,  Kohring,                 
                      Martin, Mulder, Hanley.                                  
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Brown requested further information regarding                 
  the Copper River Highway.                                                    
                                                                               
  SAM KITO, III, LEGISLATIVE LIAISON/SPECIAL ASSISTANT, OFFICE                 
  OF THE COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND PUBLIC                 
  FACILITIES, stated that request  resulted from a  settlement                 
  entered into with Department of Justice regarding the Copper                 
  River Highway  litigation.  It includes  several components,                 
  plus  litigation settlement  costs.   Representative Navarre                 
  asked how much  to date  had been spent  on the  litigation.                 
  Mr. Kito  advised that the  consequences of not  funding the                 
  settlement would  place the State  back in court  with legal                 
  costs mounting.                                                              
                                                                               
  Representative  Navarre MOVED  to  incorporated Section  #6.                 
  Representative Martin OBJECTED.                                              
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre, Parnell.                    
       OPPOSED:       Therriault,   Kelly,  Kohring,   Martin,                 
                      Mulder, Foster.                                          
                                                                               
                               13                                              
                                                                               
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION FAILED (4-6).                                                     
                                                                               
  Representative Kohring MOVED to adopt  Amendment #10.  [Copy                 
  on file].   Representative Mulder  OBJECTED for purposes  of                 
  discussion.    Representative  Kohring  explained  that  the                 
  amendment  would increase  program  receipts for  low-income                 
  housing weatherization.                                                      
                                                                               
  JOHN  BITNEY,  ALASKA  HOUSING FINANCE  CORPORATION  (AHFC),                 
  DEPARTMENT OF REVENUE, provided more  detail on the proposed                 
  project, noting that  anticipated federal  receipts for  the                 
  program  are  declining.    The  amendment would  bring  the                 
  federal receipt authority  in line with what  originally was                 
  anticipated to be received.   Representative Mulder WITHDREW                 
  the OBJECTION.   There  being NO further  OBJECTION, it  was                 
  adopted.                                                                     
                                                                               
  Co-Chair Hanley  MOVED  to adopt  Amendment #10.   [Copy  on                 
  file].  He  stated that  the two sections  had been  drafted                 
  incorrectly.  The amendment provides a technical correction.                 
  There being NO OBJECTION, it was adopted.                                    
                                                                               
  Representative Brown MOVED to adopt Amendment #12.  [Copy on                 
  file].   The amendment  would add $25  thousand general fund                 
  dollars  to  the Statewide  Library  and  Electronic Doorway                 
  (SLED) appropriation.                                                        
                                                                               
  KAREN   REHFELD,   DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                 
  SERVICES, DEPARTMENT OF EDUCATION, spoke to the need for the                 
  requested funding addition.   Representative Kelly OBJECTED.                 
                                                                               
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown,  Grussendorf,  Kohring,  Navarre,                 
  Foster.                                                                      
       OPPOSED:       Kelly,    Martin,    Mulder,    Parnell,                 
                      Therriault, Hanley.                                      
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Mr. Walsh spoke  to Amendment #13 by  Representative Foster.                 
  [Copy on file].  The amendment would delete Section #5 which                 
  had been addressed through previous language.                                
                                                                               
  Co-Chair Foster  MOVED to adopt Amendment #13.   There being                 
  NO OBJECTION, it was adopted.                                                
                                                                               
  Mr. Walsh spoke to Amendment #14.  [Copy on file].                           
                                                                               
                               14                                              
                                                                               
                                                                               
  TOM WRIGHT, STAFF, REPRESENTATIVE IVAN IVAN,  explained that                 
  there had been  a drafting error  and that the concerns  had                 
  been adopted on the Senate floor  but not incorporated.  Co-                 
  Chair Foster MOVED to  adopt Amendment #14.  There  being NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Representative  Kelly  spoke  to Amendment  #15.    [Copy on                 
  file].                                                                       
                                                                               
  (Tape Change HFC 96 - 166, Side 1).                                          
                                                                               
  Representative Kelly MOVED  to adopt  Amendment 15 (copy  on                 
  file).  Amendment 15 would delete page 14, lines 17 - 18.                    
                                                                               
  Ms.  Slagle  explained that  the  amendment would  delete an                 
  appropriation from the Fish and Game Fund for  the assertion                 
  of  state's rights  in litigation.    She observed  that the                 
  request duplicates funding  in the supplemental.   She added                 
  that $200.0  thousand dollars  was lost  for the  Endangered                 
  Species Act.                                                                 
                                                                               
  There being NO OBJECTION, Amendment 15 was adopted.                          
                                                                               
  Representative Martin MOVED  to adopt Amendment 16  (copy on                 
  file).  Amendment 16 would delete page  8, lines 6 - 8.   He                 
  explained that the  amendment would  transfer grants to  the                 
  Alaska Craftsman Home  Program and the Energy Rated Homes of                 
  Alaska from the Department of Community and Regional Affairs                 
  and place them under the  Alaska Housing Finance Corporation                 
  (AHFC).  He  noted that an  audit by the Legislative  Budget                 
  and Audit Committee showed problems with these programs.                     
                                                                               
  TIM  SULLIVAN,  EXECUTIVE  DIRECTOR,  ALASKA CRAFTSMAN  HOME                 
  PROGRAM observed that the Alaska  Craftsman Home Program and                 
  the Energy Rated Homes of Alaska have been incorporated into                 
  the State's budget  since 1990.   Both programs are  private                 
  non-profit  corporations.    He maintained  that  a  lack of                 
  service  would  result  in  a   discomfort  to  the  housing                 
  industry.  He  noted that the  Energy Rated Homes of  Alaska                 
  Program  is housed  within  AHFC.    He  asserted  that  the                 
  programs   represent  a   good  example   of  public\private                 
  partnership.  He observed that an  audit by the AHFC of  the                 
  Energy Rated Homes of Alaska  Program fund some disallowable                 
  costs.  A  second private audit concluded that  Energy Rated                 
  Homes of Alaska  had expended their funds in accordance with                 
  the provisions of the grant from AHFC.                                       
                                                                               
  DAN  FAUSKE,  EXECUTIVE  DIRECTOR,  ALASKA  HOUSING  FINANCE                 
  CORPORATION stated that AHFC did not audit Energy Rate Homes                 
  of  Alaska.     He  noted   that  AHFC  audited   Innovative                 
  Communications.  He  stressed that the Corporation  does not                 
                                                                               
                               15                                              
                                                                               
                                                                               
  have  a  contract with  Energy  Rate  Homes of  Alaska.   He                 
  maintained that  AHFC supports  the programs.   He  stressed                 
  that public hearings concluded that the public wanted access                 
  to stripper well monies and  an open bid process.   He noted                 
  that the  grant to Innovative Communications  was cancelled.                 
  It  was  a competitively  awarded  grant  and could  not  be                 
  transferred to another corporation.                                          
                                                                               
  Representative  Mulder   questioned  if  the   programs  are                 
  supported  by the  home builders.   Mr.  Fauske  stated that                 
  there have been some questions on  the funding.  He stressed                 
  that a private audit  will be completed.  He noted  that the                 
  audit has not been  completed.  He observed that  the Alaska                 
  Craftsman Home Program has  not been audited.  Energy  Rated                 
  Homes of Alaska had its own internal audit.                                  
                                                                               
  Representative Martin stressed that there  should be an open                 
  bid process.                                                                 
                                                                               
  Mr.  Fauske  stated  that  the   grant  under  question  was                 
  competitively  awarded  to  Innovated Communications.    The                 
  grant was cancelled before completion.                                       
                                                                               
  Co-Chair  Hanley questioned  if an  independent auditor  has                 
  been suggested by the Attorney General's Office.  Mr. Fauske                 
  noted that  discussions with the grantee  occurred regarding                 
  an  independent  auditor.   Co-Chair  Hanley noted  that the                 
  audit is under appeal.   He asked if AHFC  generally cancels                 
  grants under  appeal.  Mr.  Fauske stressed that  there were                 
  several complicating factors.   He  added that the  Attorney                 
  General's Office was involved in the process.                                
                                                                               
  Mr. Fauske stated  that AHFC  is against designated  grants.                 
  Co-Chair Hanley noted that Alaska Craftsman Home Program has                 
  received  designated  grants  for many  years.    Mr. Fauske                 
  observed  that  Energy   Rated  Homes  of  Alaska   has  not                 
  previously  received a designated grant.   He added that the                 
  Board of  Directors for  AHFC has  determined that  all AHFC                 
  grants should be competitively bid.                                          
                                                                               
  Representative Brown  noted that  the  programs have  always                 
  been under the Executive Budget Act.                                         
                                                                               
  Mr. Sullivan noted that the programs have had to comply with                 
  the State's single  audit act.   He noted that the  programs                 
  have  had to  comply with  federal audit  requirements.   He                 
  added that both  are private non-profit corporations.   They                 
  are  both  listed  specifically  in  statute  as  compliance                 
  methods  for  occupational  licensing   and  rating  thermal                 
  standards.  He maintained that this  is the reason that they                 
  have been line items in the budget.                                          
                                                                               
                                                                               
                               16                                              
                                                                               
                                                                               
  Mr. Fauske reiterated that AHFC did not have a contract with                 
  Energy Rated Homes of Alaska.                                                
                                                                               
  Representative  Kohring noted  that  the programs  are under                 
  AHFC.  He maintained that the programs are working.                          
                                                                               
  Mr.  Sullivan  stressed that  the  programs  were originally                 
  developed  under the  Department of  Community  and Regional                 
  Affairs.   He noted  that when energy  programs were  merged                 
  with the Department  of Community  and Regional Affairs  and                 
  the Alaska State  Housing Authority  was merged with  Alaska                 
  Housing Finance  Corporation the  programs moved  into AHFC.                 
  He observed that the Alaska State Home Builder's Association                 
  is on  record in  support of  the transfer  of Energy  Rated                 
  Homes of  Alaska and Alaska  Craftsman Home Program  into to                 
  Department of Community and Regional Affairs.  He maintained                 
  that the  Department of  Community and  Regional Affairs  is                 
  better  equipped to  handle  grants with  private non-profit                 
  corporation.                                                                 
                                                                               
  Representative Brown spoke against the amendment.                            
                                                                               
  Representative Martin spoke in support of the amendment.  He                 
  stressed that the grants should be competitively bid.                        
                                                                               
  Representative  Mulder  spoke  against the  amendment.    He                 
  stressed that the programs are working well.                                 
                                                                               
  A roll call vote was taken on the  MOTION to adopt Amendment                 
  16.                                                                          
                                                                               
  IN FAVOR: Kohring, Martin, Navarre                                           
  OPPOSED:  Mulder, Parnell,  Therriault, Brown,  Grussendorf,                 
  Kelly,         Foster, Hanley                                                
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative Mulder MOVED  to adopt Amendment 17  (copy on                 
  file).  He explained that the amendment would insert on page                 
  8,  line 9:   "The source  of these  funds shall  be general                 
  Stripper  Well Oil  Overcharge funds appropriated  to Alaska                 
  Housing Finance Corporation  Projects in  the Department  of                 
  Revenue"; deleted on page 20, line  8, "3.0 million dollars"                 
  and insert  $600.0 thousand  dollars"; and  delete page  20,                 
  lines 10 - 14.                                                               
                                                                               
  Mr.  Fauske spoke  against  the amendment.    He noted  that                 
  Stripper Well  Oil Overcharge  funds  are restitution  money                 
  paid to the State of Alaska for overcharges to all residents                 
  of  the State.   He  noted that  a committee  was formed  to                 
  design a budget and an expenditure plan for  the monies.  He                 
  observed that the amendment  would tie up the funds  so that                 
                                                                               
                               17                                              
                                                                               
                                                                               
  they  could  not be  utilized for  any  other programs.   He                 
  emphasized that other  competitive bidders  in this line  of                 
  work have asked for access to bid some of the work.                          
                                                                               
  Representative Mulder spoke in support  of the Amendment 17.                 
  He stressed  that Energy  Rated Homes  of Alaska  and Alaska                 
  Craftsman  Home  Program  are  important programs  that  are                 
  serving a constituency.  He spoke in support  of maintaining                 
  a revenue  stream for  these programs.   He maintained  that                 
  AHFC is seeking to  put this $3.0 million dollars  back into                 
  the corpus of the Fund.                                                      
                                                                               
  Mr. Fauske  pointed out that they are  federal receipts that                 
  reside  within  the  Corporation.    Representative   Mulder                 
  stressed that the  amendment would maintained the  funds for                 
  the future.                                                                  
                                                                               
  Representative Martin spoke against the amendment.                           
                                                                               
  Mr. Fauske stressed  that the Stripper Well  Plan recognized                 
  that the funds are finite.  The Plan asks the Legislature to                 
  request AHFC to review the activities to be conducted  under                 
  the Plan  in order  to assure  that they  serve the  general                 
  population without  regard to income  level.  He  noted that                 
  the Plan was part of AHFC's budget.                                          
  Representative Martin  expressed concern  that Amendment  17                 
  amounts to an exclusive contract  to fund private non-profit                 
  corporations.                                                                
                                                                               
  Representative Mulder reiterated that the funding is finite.                 
  Mr.  Fauske  stressed  that  the   Plan  would  utilize  the                 
  remaining funds.   Representative Mulder  stressed that  the                 
  money can be appropriated to other programs in the future if                 
  the legislature decides to redirect them.                                    
                                                                               
  Mr.  Fauske  stressed  that  AHFC  is  not  opposed  to  the                 
  programs.   He emphasized  that public  comment demonstrated                 
  the need for access to the dollars.                                          
                                                                               
  Representative Mulder asserted that the  money will be saved                 
  for the future.                                                              
                                                                               
  Co-Chair Hanley summarized that  $600.0 thousand dollars  of                 
  the  $3.0 million  would  be used  for designated  grants to                 
  Energy  Rated  Homes  of Alaska  and  Alaska  Craftsman Home                 
  Program.                                                                     
                                                                               
  Mr. Fauske pointed out that the Energy Rate Homes and Alaska                 
  Craftsman Home Programs could bid on the remaining money.                    
                                                                               
  Representative  Brown  cited  statutes  which  refer to  the                 
  Energy  Rated  Homes  of Alaska  and  Alaska  Craftsman Home                 
                                                                               
                               18                                              
                                                                               
                                                                               
  Programs.  She spoke in support of the amendment.                            
                                                                               
  A roll call vote was taken on the MOTION to adopt  Amendment                 
  17.                                                                          
                                                                               
  IN FAVOR: Brown,    Navarre,    Kelly,    Mulder,   Parnell,                 
  Therriault,         Foster                                                   
  OPPOSED:  Martin, Kohring, Hanley                                            
                                                                               
  Representative Grussendorf was absent from the vote.                         
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  Representative Martin asked  if the passage of  Amendment 17                 
  would delete funding for energy programs for Alaska.                         
                                                                               
  JOHN BITNEY, STAFF, ALASKA HOUSING FINANCE CORPORATION noted                 
  that  the only  stripper well  monies  expended are  the two                 
  designated  grants under  the  Department  of Community  and                 
  Regional Affairs.  He observed that AHFC has $600.0 thousand                 
  dollars in receipt authority designated to be transferred to                 
  two designated grants under the  Department of Community and                 
  Regional Affairs.  The  statute still requires AHFC to  have                 
  the programs.                                                                
                                                                               
  Representative Therriault MOVED to  adopt Amendment 18 (copy                 
  on  file).   He explained  that  the amendment  would delete                 
  "$6.0 million dollars"  and insert "5.5 million  dollars" on                 
  page 23, line  7; and authorize $500.0  thousand dollars for                 
  the Chena Hot Springs Road.  He explained that the amendment                 
  would transfer funding from the Denali Highway.                              
                                                                               
  (Tape Change, HFC 96-166, Side 2)                                            
                                                                               
  SAM   KITO    III,   SPECIAL   ASSISTANT,    DEPARTMENT   OF                 
  TRANSPORTATION  AND  PUBLIC  FACILITIES clarified  that  the                 
  Department is bound  by federal requirements to  comply with                 
  the federal processes and planning  requirements.  He stated                 
  that he did  not know where the Chena Hot  Spring road falls                 
  under   federal  priorities.      He   noted  that   federal                 
  authorization to receive and expend  from project to project                 
  can be reallocated if there is a shortage in a project.                      
                                                                               
  Representative Therriault noted that $3.0 million dollars is                 
  the estimated  amount needed  to complete the  project.   He                 
  observed  that part of the  project was completed last fall.                 
  He questioned if  the project cost can  be increased without                 
  additional authorization.                                                    
                                                                               
  Mr. Kito noted  that authorization can be  increased through                 
  the Legislative Budget  and Audit Committee in  exchange for                 
  decreased authority in another project.                                      
                                                                               
                               19                                              
                                                                               
                                                                               
  There being NO OBJECTION, Amendment 18 was adopted.                          
                                                                               
  Representative Brown MOVED to rescind the Committee's action                 
  in failing to  adopt Amendment  8.  She  explained that  the                 
  amendment would delete the balance  of funds from the Denali                 
  Highway resurfacing project.   There being NO  OBJECTION, it                 
  was so ordered.                                                              
                                                                               
  Co-Chair Hanley OBJECTED to the motion to adopt Amendment 8.                 
  A roll call vote was taken on the MOTION.                                    
                                                                               
  IN FAVOR: Navarre,  Therriault,  Brown,  Grussendorf, Kelly,                 
  Kohring                                                                      
  OPPOSED:  Parnell, Martin, Mulder, Hanley, Foster                            
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative Therriault MOVED  to rescind the  Committee's                 
  action in failing  to adopt  Amendment 12.   There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative  Martin  OBJECTED  to  the  motion  to  adopt                 
  Amendment 12.  A roll call vote was taken on the MOTION.                     
                                                                               
  IN FAVOR: Brown,  Grussendorf,   Navarre,  Kelly,   Kohring,                 
  Mulder,        Parnell, Therriault, Foster, Hanley                           
                                                                               
  OPPOSED:  Martin                                                             
                                                                               
  The MOTION PASSED (10-1).                                                    
                                                                               
  Co-Chair Hanley MOVED to adopt  Amendment 19 (copy on file).                 
  The amendment would extend  the roll forward for  the Arctic                 
  National Wildlife Refuge  education effort.  There  being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative Martin requested that Alaska Housing  Finance                 
  Corporation projects remain open.                                            
                                                                               
  Co-Chair Hanley suggested  that projects be reviewed  to see                 
  if they fit under categories that are appropriate.                           
                                                                               
  Representative  Brown asked if  the legislation contains the                 
  use of  Alaska Housing  Finance Corporation  funds for  non-                 
  housing purposes.                                                            
                                                                               
  Ms. McConnell noted that there are water/sewer projects that                 
  would not be  related specifically for  housing.  The  whole                 
  municipal water/sewer program is funded  with funds from the                 
  Alaska Housing Finance Corporation.                                          
                                                                               
                                                                               
                               20                                              
                                                                               
                                                                               
  Ms. McConnell  observed that the Department of Environmental                 
  Conservation and  Alaska Housing Finance  Corporation (AHFC)                 
  worked together to  provide AHFC with information  about the                 
  projects.                                                                    
                                                                               
  Representative Martin expressed  concern with funding  for a                 
  road and pipeline project in Petersburg.                                     
                                                                               
  Representative Grussendorf  commented that the  water source                 
  in Petersburg is not adequate.   He noted that the community                 
  has  recently  received  authorization  for  a  $1.0 million                 
  dollar  federal  grant.    The state  funding  is  needed to                 
  complete the reservoir dam.                                                  
                                                                               
  Ms. McConnell clarified that the Administration did not want                 
  more than $53.0  million dollars in AHFC  corporate receipts                 
  to be used for these projects.                                               
                                                                               
  Representative Kohring noted  that AHFC assumed some  of the                 
  responsibilities of the Department of Community and Regional                 
  Affairs,  including  water   and  sewer  needs  related   to                 
  infrastructure.                                                              
                                                                               
  In  response  to  a question  by  Representative  Brown, Ms.                 
  McConnell noted that projects were  added from the municipal                 
  matching priority list.                                                      
                                                                               
  Representative  Navarre  MOVED  to  incorporate the  adopted                 
  reappropriation  and  amendments  into HCS  CSSB  136 (FIN).                 
  There being NO OBJECTION, it was so ordered.  Representative                 
  Navarre MOVED to report  HC CSSB 136 (FIN) out  of Committee                 
  with individual recommendations.                                             
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 4:20 a.m.                                           
                                                                               
                                                                               
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