Legislature(1999 - 2000)

04/30/1999 02:00 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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HOUSE FINANCE COMMITTEE                                                                                                         
April 30, 1999                                                                                                                  
2:00 P.M.                                                                                                                       
                                                                                                                                
TAPE HFC 99 - 115, Side 1.                                                                                                      
TAPE HFC 99 - 115, Side 2.                                                                                                      
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Therriault called the House Finance Committee                                                                          
meeting to order at 2:00 P.M.                                                                                                   
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Co-Chair Therriault   Representative Foster                                                                                     
Co-Chair Mulder    Representative Grussendorf                                                                                   
Vice-Chair Bunde   Representative Kohring                                                                                       
Representative Austerman  Representative Moses                                                                                  
Representative J. Davies  Representative G. Davis                                                                               
                                                                                                                                
Representative Williams was not present for the meeting.                                                                        
                                                                                                                                
ALSO PRESENT                                                                                                                    
                                                                                                                                
Representative Andrew Halcro; Senator Jerry Mackie; Mike                                                                        
Tibbles, Staff, Representative Gene Therriault; Lisa                                                                            
Torkelson, Staff, Representative Fred Dyson; Joe Balash,                                                                        
Staff, Representative Gene Therriualt; Tina Lindgren,                                                                           
Executive Director, Alaska Visitors Association (AVA),                                                                          
Anchorage; Annalee McConnell, Director, Office of Management                                                                    
and Budget, Office of the Governor; Jack Kreinheder, Senior                                                                     
Policy Analyst, Office of Budget and Management; Ginny Fay,                                                                     
Acting Director, Division of Tourism, Department of Commerce                                                                    
and Economic Development.                                                                                                       
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
HB 34 An Act relating to the crime of misprision of a                                                                           
crime against a child.                                                                                                          
                                                                                                                                
CS HB 34 (FIN) was reported out of Committee with                                                                               
a "do pass" recommendation and with indeterminent                                                                               
fiscal notes by the Department of Administration                                                                                
and the Department of Law dated 4/21/99.                                                                                        
                                                                                                                                
HB 40 An Act combining parts of the Department of                                                                               
Commerce and Economic Development and parts of the                                                                              
Department of Community and Regional Affairs by                                                                                 
transferring some of their duties to a new                                                                                      
Department of Commerce and Rural Development;                                                                                   
transferring some of the duties of the Department                                                                               
of Commerce and Economic Development and the                                                                                    
Department of Community and Regional Affairs to                                                                                 
other existing agencies; eliminating the                                                                                        
Department of Commerce and Economic Development                                                                                 
and the Department of Community and Regional                                                                                    
Affairs; relating to the Department of Commerce                                                                                 
and Rural Development and the commissioner of                                                                                   
commerce and rural development; adjusting the                                                                                   
membership of certain multi- member bodies to                                                                                   
reflect the transfer of duties among departments                                                                                
and the elimination of departments; creating the                                                                                
office of international trade and relating to its                                                                               
duties; and providing for an effective date.                                                                                    
                                                                                                                                
 HB 40 was HELD in Committee for further                                                                                        
discussion.                                                                                                                     
                                                                                                                                
SB 107 An Act relating to tourism and tourism marketing;                                                                        
eliminating the Alaska Tourism Marketing Council;                                                                               
and providing for an effective date.                                                                                            
                                                                                                                                
 CS SB 107 (FIN) was reported out of Committee with                                                                             
"no recommendation" and with two new fiscal notes                                                                               
by the House Finance Committee.                                                                                                 
HOUSE BILL NO. 34                                                                                                               
                                                                                                                                
An Act relating to the crime of misprision of a crime                                                                           
against a child.                                                                                                                
                                                                                                                                
Representative Foster MOVED to RESCIND action taken on                                                                          
moving HB 34 out of Committee.  There being NO OBJECTION, it                                                                    
was rescinded.                                                                                                                  
                                                                                                                                
Representative J. Davies MOVED to RESCIND action taken on                                                                       
adopting the original Amendment #1.  [Copy on File].  There                                                                     
being NO OBJECTION, action was rescinded.                                                                                       
                                                                                                                                
Representative J. Davies MOVED to adopt the new Amendment                                                                       
Chair Therriault OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
Representative J. Davies explained that the amendment would                                                                     
address concerns previously expressed by Committee members.                                                                     
He indicated that Amendment #I.3 was fundamentally the same                                                                     
as the amendment adopted previously, however, it had been                                                                       
structured differently to be more complete including                                                                            
references and definitions.                                                                                                     
                                                                                                                                
LISA TORKELSON, STAFF, REPRESENTATIVE FRED DYSON, noted that                                                                    
Representative Dyson agrees with the changes made by the                                                                        
amendment.  Co-Chair Therriault WITHDREW his OBJECTION to                                                                       
adopting the amendment.  There being NO further OBJECTIONS,                                                                     
it was adopted.                                                                                                                 
                                                                                                                                
Representative Bunde MOVED to report CS HB 34 (FIN) out of                                                                      
Committee with individual recommendations and with the                                                                          
attached fiscal notes.  There being NO OBJECTION, it was so                                                                     
ordered.                                                                                                                        
                                                                                                                                
CS HB 34 (FIN) was reported out of Committee with a "do                                                                         
pass" recommendation and with a fiscal notes by the                                                                             
Department of Administration and the Department of Law dated                                                                    
4/21/99.                                                                                                                        
CS FOR SENATE BILL NO. 107(FIN)                                                                                                 
                                                                                                                                
An Act relating to tourism and tourism marketing;                                                                               
eliminating the Alaska Tourism Marketing Council; and                                                                           
providing for an effective date.                                                                                                
                                                                                                                                
JOE BALASH, STAFF, REPRESENTATIVE GENE THERRIAULT, pointed                                                                      
out that CS SB 107 (FIN) was the companion bill to HB 136                                                                       
which previously had been heard in the House Finance                                                                            
Committee.  Mr. Balash spoke to the changes between the two                                                                     
bills.                                                                                                                          
                                                                                                                                
TINA LINDGREN, EXECUTIVE DIRECTOR, ALASKA VISITORS                                                                              
ASSOCIATION (AVA), ANCHORAGE, touched upon the plan of the                                                                      
bill.  She commented that the bill before the Committee is                                                                      
the product of several years effort.  The actual wording was                                                                    
agreed to by the Alaska Visitors Association and the                                                                            
Administration.  She hoped that the bill would pass.  A                                                                         
transition team has already begun the work of establishing a                                                                    
new organization and to date, a number of people have                                                                           
enrolled.  The idea is that industry will create a new                                                                          
organization that combines the Alaska Tourism Marketing                                                                         
Council (ATMC) and the Alaska Visitors Association (AVA) and                                                                    
the marketing functions of the Division.  Passing the bill                                                                      
will provide that the process move forward.                                                                                     
                                                                                                                                
Representative J. Davies asked how realistic is it to assume                                                                    
that financing will be raised through the private sector.                                                                       
Ms. Lindgren stated that this will not be an easy challenge,                                                                    
however, there has been a $2 million dollar commitment from                                                                     
major players.  She acknowledged that the community portion                                                                     
of $1 million dollars will be more difficult to raise.                                                                          
                                                                                                                                
Representative J. Davies advised that he would continue to                                                                      
support implementation of a statewide tourism tax.                                                                              
                                                                                                                                
SENATOR JERRY MACKIE spoke in support of the Senate Finance                                                                     
Committee (SFC) version of the legislation.  He pointed out                                                                     
that everything in that version concurred with the proposed                                                                     
House Finance Committee (HFC) version and that the SFC had                                                                      
adopted the fiscal notes brought forward by the HFC.  He                                                                        
confirmed that the fiscal notes are appropriate and support                                                                     
the changes made to the legislation.                                                                                            
                                                                                                                                
Mr. Baylash explained the difference between the fiscal                                                                         
notes prepared by the SFC and the HFC.  He advised that the                                                                     
two fiscal notes proposed by HFC address the tourism BRU                                                                        
within the Department of Commerce and Economic Development;                                                                     
SFC did adopt fiscal notes identical in numbers to the ones                                                                     
drafted.  In FY00, the pertinent note for the Alaska Tourism                                                                    
Marketing Council (ATMC) numbers indicate personal services,                                                                    
travel and contractual and are listed as requested in the                                                                       
Governor's budget.  In the Tourism Development component,                                                                       
the FY00 Division of Tourism fiscal note, there is a $200                                                                       
hundred thousand-dollar difference in the contractual line.                                                                     
                                                                                                                                
Mr. Baylash suggested that the Department no longer needs                                                                       
authority to receive and expend that funding.  Additionally,                                                                    
there is a $100 thousand dollar reduction to the personal                                                                       
service line.  That number was based on a FY01 projection.                                                                      
The Director of the Division has resigned and it is believed                                                                    
that additional turnover will occur.  Rather than deleting                                                                      
specific positions, $100 thousand dollars was deleted from                                                                      
the entire line in order that it could be absorbed in other                                                                     
areas of their program.                                                                                                         
                                                                                                                                
Mr. Baylash continued, the reduction was based on part to                                                                       
the millenium plan and partially to the legislation.  The                                                                       
other $700 hundred thousand dollars will be used for the                                                                        
operations and staffing for the Division of Tourism. In                                                                         
subsequent years, FY02 and FY03, the contractual line will                                                                      
decrease each year by $500 thousand dollars as the State's                                                                      
contribution to the marketing effort is ratcheted down.                                                                         
                                                                                                                                
GINNY FAY, ACTING DIRECTOR, DIVISION OF TOURISM, DEPARTMENT                                                                     
OF COMMERCE AND ECONOMIC DEVELOPMENT, spoke to the                                                                              
difference in the fiscal notes.  She pointed out that the                                                                       
ATMC fiscal note submitted by the Division is close to the                                                                      
same as the HFC proposed note.  The big difference is to the                                                                    
Tourism Development note.  The note submitted by the                                                                            
Department is based on current tourism funding by the State.                                                                    
Presently, the State of Alaska pays $5.3 million dollars                                                                        
total tourism funding, of which, $3.3 million dollars of                                                                        
that is a contract through ATMC, $1.2 million dollars is                                                                        
program receipts, and that industry provides a 25% match for                                                                    
the Tourism Marketing contract, and $2.2 million to the                                                                         
Division of Tourism.                                                                                                            
                                                                                                                                
Ms. Fay continued, the marketing provided by the State of                                                                       
Alaska is done in two pieces.  One portion is handled by                                                                        
ATMC and the other is international marketing addressed by                                                                      
the Division of Tourism.  The Department's fiscal note                                                                          
envisions that after the merger occurs, the marketing done                                                                      
by contract now through the Division and that done by                                                                           
contract through ATMC will be one large contract with the                                                                       
qualified trade association.  The Department's contractual                                                                      
line indicates the addition of both of those marketing                                                                          
contracts.                                                                                                                      
                                                                                                                                
Ms. Fay advised that the personal service line is an area of                                                                    
major difference.  Between the two fiscal notes, there will                                                                     
be six state employees that vacate.  The Department does not                                                                    
know what the qualified trade association will be doing as                                                                      
all the marketing currently is done by the State through                                                                        
contract.  She assumed that the Administration would be                                                                         
handling the additional work of ATMC without additional                                                                         
staff.  That Division continues to do the work that they are                                                                    
currently doing now and will assumed the new obligations.                                                                       
She emphasized that the current workload can not be handled                                                                     
without any additional staff.                                                                                                   
                                                                                                                                
Senator Mackie understood the Department's concern, however,                                                                    
addressed the need of compromising considering the State's                                                                      
economic budget.  He stated that the Division of Tourism                                                                        
does not need to remain the same as it is now since they                                                                        
will not no longer be marketing.  He noted that what is                                                                         
reflected in the fiscal notes involves general funding,                                                                         
program receipts and designated program receipts.  In the                                                                       
current year, the State is spending just over $7 million                                                                        
dollars for tourism.  In the prepared legislative fiscal                                                                        
notes, that amount will be $6.7 million dollars a $300                                                                          
thousand dollars reduction.  He believed that reduction                                                                         
would not decimate the Division of Tourism and could provide                                                                    
a reasonable funding level for the transition.                                                                                  
                                                                                                                                
Representative J. Davies inquired if there are other                                                                            
function areas of tourism besides the marketing effort.  Ms.                                                                    
Fay explained that there are many services provided that are                                                                    
not related to marketing as travel into the State,                                                                              
permitting on federal lands and land use planning.  The                                                                         
Department also works closely with communities as they try                                                                      
to develop tourism in their areas.  She emphasized that                                                                         
there continues to be growth and need for information on                                                                        
developing tourist opportunities especially in rural Alaska.                                                                    
Currently there is insufficient staffing to do the                                                                              
development functions related to tourism.                                                                                       
                                                                                                                                
Ms. Fay advised that it would be difficult to assume the                                                                        
role of overseeing in-put on the large contract with current                                                                    
staffing.  Agreement has occurred among all businesses                                                                          
because the State was willing to oversee the contract to                                                                        
guarantee that businesses and communities benefit from                                                                          
tourism activities within the State.  Ms. Fay argued that                                                                       
the current Division of Tourism fiscal note will begin to                                                                       
de-staff that Division, loosing the ability to have a                                                                           
reasonably active role in the contract.                                                                                         
                                                                                                                                
Representative J. Davies commented that the funding cut                                                                         
could decimate the work of the Division.  Co-Chair                                                                              
Therriault interjected that the proposed funding should be                                                                      
adequate.  Senator Mackie agreed that nothing was being                                                                         
decimated with the proposed level of funding.                                                                                   
                                                                                                                                
Ms. Fay pointed out that in FY00, the Division would not                                                                        
remain whole with a $100 thousand dollar reduction,                                                                             
affecting five positions.                                                                                                       
                                                                                                                                
Representative J. Davies MOVED an amendment to the Division                                                                     
of Tourism fiscal note.  He proposed a change to the FY01                                                                       
note adding $100 thousand dollars to personal services,                                                                         
adding $40 thousand dollars to the travel line, and                                                                             
subtracting $200 thousand dollars from the contractual line                                                                     
making it would be a net zero amendment.  The employee                                                                          
position line would increase from six to eight.                                                                                 
                                                                                                                                
Representative Austerman OBJECTED.                                                                                              
                                                                                                                                
(Tape Change HFC 99 - 115, Side 2).                                                                                             
                                                                                                                                
Representative Austerman suggested that the biggest change                                                                      
would be in FY01.  The difference then between what the                                                                         
Department wants and what the Legislature would be doing                                                                        
would not be that significant.  Senator Mackie noted that                                                                       
the net change would be zero, however, the effect would be                                                                      
$200 thousand dollars less in marketing, going to personal                                                                      
services and travel.  The $200 thousand dollars that would                                                                      
be reduced to marketing would create an additional loss of                                                                      
$500 thousand dollars because of the 60% match.                                                                                 
                                                                                                                                
Representative J. Davies explained that the intent by making                                                                    
the shift was to have a continued effort in rural                                                                               
development tourism.  Representative Austerman stated that                                                                      
effort would be made through a $60 thousand dollar grant                                                                        
already included. Representative J. Davies emphasized that                                                                      
the present level of funding is not adequate.                                                                                   
                                                                                                                                
A roll call vote was taken on the motion made on the                                                                            
Division of Tourism fiscal note.                                                                                                
                                                                                                                                
IN FAVOR:  Moses, J. Davies, Grussendorf                                                                                        
OPPOSED: Austerman, Bunde, G. Davis, Foster, Kohring,                                                                           
Therriault                                                                                                                      
                                                                                                                                
Representatives Williams and Co-Chair Mulder were not                                                                           
present for the vote.                                                                                                           
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
Representative Bunde MOVED to report CS SB 107 (FIN) out of                                                                     
Committee with individual recommendations and with the                                                                          
accompanying fiscal notes.  There being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CS SB 107 (FIN) was reported out of Committee with "no                                                                          
recommendation" and with two fiscal notes by the House                                                                          
Finance Committee.                                                                                                              
HOUSE BILL NO. 40                                                                                                               
                                                                                                                                
An Act combining parts of the Department of Commerce                                                                            
and Economic Development and parts of the Department of                                                                         
Community and Regional Affairs by transferring some of                                                                          
their duties to a new Department of Commerce and Rural                                                                          
Development; transferring some of the duties of the                                                                             
Department of Commerce and Economic Development and the                                                                         
Department of Community and Regional Affairs to other                                                                           
existing agencies; eliminating the Department of                                                                                
Commerce and Economic Development and the Department of                                                                         
Community and Regional Affairs; relating to the                                                                                 
Department of Commerce and Rural Development and the                                                                            
commissioner of commerce and rural development;                                                                                 
adjusting the membership of certain multi- member                                                                               
bodies to reflect the transfer of duties among                                                                                  
departments and the elimination of departments;                                                                                 
creating the office of international trade and relating                                                                         
to its duties; and providing for an effective date.                                                                             
                                                                                                                                
JACK KREINHEDER, SENIOR POLICY ANALYST, OFFICE OF BUDGET AND                                                                    
MANAGEMENT, offered to answer questions on the technical                                                                        
placement of verbiage.  In response to Representative                                                                           
Austerman, Mr. Kreinheder advised that there are no new                                                                         
programs contained in the legislation.  Co-Chair Therriault                                                                     
added that the drafter had been requested to "keep a look                                                                       
out" for anything that appeared to be new.                                                                                      
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #1.  [Copy on                                                                      
File].  He advised that the Department of Education had                                                                         
requested the amendment.                                                                                                        
                                                                                                                                
MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIUALT,                                                                            
explained that Amendment #1 would move all the licensure of                                                                     
child care facilities from Title 47, Chapter 35, the                                                                            
Welfare, Social Services Institution chapter and would place                                                                    
them into Title 14, Chapter 37.  Mr. Tibbles noted that a                                                                       
request was made that an effective date of July 1, 2000 be                                                                      
added, which would provide the Department enough time.  Mr.                                                                     
Tibbles advised that the delayed effective date was not                                                                         
printed in the amendment.                                                                                                       
                                                                                                                                
Representative J. Davies MOVED to AMEND Amendment #1 by                                                                         
adding the effective date, July 1, 2000.                                                                                        
                                                                                                                                
Representative Kohring observed that the proposed change                                                                        
would be consistent with the work done by the Committee.  It                                                                    
was the subcommittee's intent that child care programs go                                                                       
into one department.  There being NO OBEJCTION, the                                                                             
amendment to the amendment was adopted.                                                                                         
                                                                                                                                
There being NO OBJECTION to the adoption of the new                                                                             
Amendment #1, it was adopted as amended.                                                                                        
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #2.  [Copy on                                                                      
File].  Mr. Tibbles explained that the amendment would                                                                          
provide another effective date change on all the provisions                                                                     
that relate to the transfer of the Alaska Human Resource                                                                        
Investment Council from the Office of the Governor to the                                                                       
Department of Labor and Workforce Development.  There being                                                                     
NO OBJECTION, it was adopted.                                                                                                   
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #3.  [Copy on                                                                      
File].  Mr. Tibbles commented that the amendment would                                                                          
provide a technical change from the Project Loan Committee                                                                      
commissioner, which would create a decline in public members                                                                    
from four to three.  The total membership of that Committee                                                                     
will be five.  There being NO OBJECTION, Amendment #3 was                                                                       
adopt.                                                                                                                          
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #4.  [Copy on                                                                      
File].  Mr. Tibbles pointed out that the amendment would be                                                                     
placed in the repealler section of the bill, therefore,                                                                         
deleting the existing statutory reference of the Manpower                                                                       
Training Program.  Mr. Kreinheder agreed that program no                                                                        
longer existed and that the statute was obsolete.  There                                                                        
being NO OBJECTION, Amendment #4 was adopted.                                                                                   
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #5.  [Copy on                                                                      
File].  Mr. Tibbles noted that Amendment #5 states that the                                                                     
Governor shall appoint the executive director of the Alaska                                                                     
Human Resource Investment Council.  Currently, statutes                                                                         
provide that it exist in the Governor's Office.  The bill is                                                                    
proposing to move that to the new Department of Labor &                                                                         
Workforce Development.  Mr. Kreinheder noted that the                                                                           
Administration did support the change.  There being NO                                                                          
OBJECTION, Amendment #5 was adopted.                                                                                            
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #6.  [Copy on                                                                      
File].  Mr. Tibbles explained that the amendment would add                                                                      
another section to the repealler statute thereby deleting                                                                       
the existing statutory reference to that advisory committee.                                                                    
He pointed out that money continues to be collected,                                                                            
however, there are no more loans.  Mr. Kreinheder spoke to                                                                      
the Administration's support of the amendment.  There being                                                                     
NO OBJECTION, it was adopted.                                                                                                   
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #7.  [Copy on                                                                      
File].  Mr. Tibbles advised that the amendment was a request                                                                    
from the Department of Labor.  They asked that the section                                                                      
dealing with the Business Incentive Training Program be                                                                         
moved from Title 23, Chapter 5, to Title 23, Chapter 15.                                                                        
There being NO OBJECTION, Amendment #7 was adopted.                                                                             
                                                                                                                                
Representative Austerman WITHDREW Amendment #8.  [Copy on                                                                       
File].                                                                                                                          
                                                                                                                                
Representative Austerman MOVED to adopt Amendment #9.  [Copy                                                                    
on File].  Co-Chair Therriault OBJECTED for the purpose of                                                                      
discussion.                                                                                                                     
                                                                                                                                
Representative Austerman explained that the amendment would                                                                     
delete material from Page 4, Line 21 through Page 5, Line                                                                       
23, which would remove funding for the child care facility                                                                      
assistance.  He recommended that funding be moved to the                                                                        
Childcare Assistance Program.  Representative J. Davies                                                                         
OBJECTED.  He stated that he would object on two grounds:                                                                       
                                                                                                                                
* The bill intends only to move things around and                                                                               
not make substantive changes.                                                                                                   
* Additionally, the grant program is different than                                                                             
day care assistance and it exists so as to insure                                                                               
that day care programs deliver developmentally                                                                                  
appropriate assistance, education and care of                                                                                   
children.                                                                                                                       
                                                                                                                                
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET,                                                                    
OFFICE OF THE GOVERNOR, noted that the Administration                                                                           
strongly objects to making a change of this magnitude.                                                                          
There has been no opportunity for the public to know what is                                                                    
under consideration.  She recommended that this could be                                                                        
discussed next year.  Passage of the amendment would put                                                                        
into jeopardy many facilities and families.                                                                                     
                                                                                                                                
In response to Representative Austerman, Representative J.                                                                      
Davies explained that the program was not used to help the                                                                      
facilities operate but rather it was used to add quality                                                                        
pieces to their operations.  It is based on $50 per month,                                                                      
per child, and must be applied for.  Representative G. Davis                                                                    
voiced concern with the issues and legal aspects which could                                                                    
result from the proposed change.  Representative Kohring                                                                        
suggested that this concern be addressed through next year's                                                                    
budget cycle.                                                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:  Austerman, Bunde                                                                                                     
OPPOSED: J. Davies, G. Davis, Foster, Kohring, Moses,                                                                           
Therriault                                                                                                                      
                                                                                                                                
Representatives Williams, Grussendorf, and Mulder were not                                                                      
present for the vote.                                                                                                           
                                                                                                                                
The MOTION FAILED (2-6).                                                                                                        
                                                                                                                                
Co-Chair Therriault explained that his "no" vote should not                                                                     
be indicative that he will not consider elimination to that                                                                     
program in the future.  He noted that having worked with the                                                                    
Administration and the prime sponsor of the bill, the action                                                                    
could overturn the delicate balance currently achieved.                                                                         
                                                                                                                                
Representative J. Davies MOVED to adopt Amendment #10.                                                                          
[Copy on File].  Co-Chair Therriault OBJECTED for the                                                                           
purpose of discussion.                                                                                                          
                                                                                                                                
Representative J. Davies stated that consolidation effort                                                                       
has been the focus on economic development efforts in rural                                                                     
Alaska.  The amendment would add to the commissioner's                                                                          
responsibilities, advising on issues and making                                                                                 
recommendations.  Co-Chair Therriault WITHDREW his OBJECTION                                                                    
to the amendment. There being NO further OBJECTION, it was                                                                      
adopted.                                                                                                                        
                                                                                                                                
Ms. McConnell addressed the anticipated savings through the                                                                     
fiscal note.  She noted that there are several positions                                                                        
which will be eliminated, however, initially, a lot of work                                                                     
will be needed to address serious issues.  Co-Chair                                                                             
Therriault advised that fiscal notes would be ready for the                                                                     
Committee's preview at a forthcoming meeting.                                                                                   
                                                                                                                                
HB 40 was HELD in Committee for further consideration.                                                                          
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 3:40 P.M.                                                                                              
H.F.C. 11 4/30/99                                                                                                               

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