Legislature(2001 - 2002)

03/10/2001 10:09 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                   HOUSE FINANCE COMMITTEE                                                                                      
                       MARCH 10, 2001                                                                                           
                         10:09 A.M.                                                                                             
                                                                                                                                
TAPE HFC 01 - 43, Side A                                                                                                        
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CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Mulder  called the House  Finance Committee meeting                                                                    
to order at 10:09 A.M.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eldon Mulder, Co-Chair                                                                                           
Representative Bill Williams, Co-Chair                                                                                          
Representative Con Bunde, Vice-Chair                                                                                            
Representative Eric Croft                                                                                                       
Representative John Davies                                                                                                      
Representative Carl Moses                                                                                                       
Representative Richard Foster                                                                                                   
Representative John Harris                                                                                                      
Representative Bill Hudson                                                                                                      
Representative Ken Lancaster                                                                                                    
Representative Jim Whitaker                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Robin   Taylor;  Representative   Ethan  Berkowitz;                                                                    
Representative   Beth  Kerttula;  Senator   Alan  Austerman;                                                                    
Representative  Sharon Cissna;  Representative  Kevin Meyer;                                                                    
Representative  Gary  Stevens;  Representative  Vic Kohring;                                                                    
Larry LaBolle,  Staff, Representative  Foster; Denny DeWitt,                                                                    
Staff,  Representative   Eldon  Mulder;   Kenneth  Bischoff,                                                                    
Director, Division of Administrative Services, Department of                                                                    
Public  Safety;  Annalee   McConnell,  Director,  Office  of                                                                    
Management  and  Budget,  Office  of  the  Governor;  Dwayne                                                                    
Peeples,  Director, Administrative  Services,  Department of                                                                    
Corrections;  Nico  Bus,  Administrative  Services  Manager,                                                                    
Division   of  Support   Services,  Department   of  Natural                                                                    
          Resources; Dan Spencer, Director,  Division of Administrative                                                         
          Services,   Department  of   Administration;  Nancy   Slagle,                                                         
          Director, Division of Administrative  Services, Department of                                                         
          Transportation   and  Public   Facilitates;  Barbara   Frank,                                                         
          Director, Division of Administrative  Services, Department of                                                         
          Environmental    Conservation;    Tom    Lawson,    Director,                                                         
          Administrative   Services,   Department  of   Community   and                                                         
          Economic  Development;  David   Teal,  Director,  Legislative                                                         
          Finance Division.                                                                                                     
                                                                                                                                
          SUMMARY                                                                                                             
                                                                                                                                
          HB 103    An Act making appropriations  for the operating and                                                         
                    loan  program  expenses  of state  government,  for                                                         
                    certain  programs, and to capitalize funds;  making                                                         
                    appropriations   under   art.   IX,   sec.   17(c),                                                         
                    Constitution  of  the  State of  Alaska,  from  the                                                         
                    constitutional  budget reserve fund; and  providing                                                         
                    for an effective date.                                                                                      
                                                                                                                                
                    HB 103 was HEARD and HELD in Committee for further                                                          
                    consideration.                                                                                              
                                                                                                                                
                                                                                                                                
          HB 104    An Act making appropriations  for the operating and                                                         
                    capital   expenses   of  the   state's   integrated                                                         
                    comprehensive mental  health program; and providing                                                         
                    for an effective date.                                                                                      
                                                                                                                                
                    HB 104 was HEARD and  HELD in Committee for further                                                         
                    consideration.                                                                                              
          HOUSE BILL NO. 103                                                                                                  
                                                                                                                                
               An Act making appropriations  for the operating and loan                                                         
               program  expenses  of   state  government,  for  certain                                                         
               programs,    and    to    capitalize    funds;    making                                                         
               appropriations  under art. IX, sec. 17(c),  Constitution                                                         
               of the  State of Alaska, from the constitutional  budget                                                         
               reserve fund; and providing for an effective date.                                                               
                                                                                                                                
          HOUSE BILL NO. 104                                                                                                  
                                                                                                                                
               An  Act  making  appropriations for  the  operating  and                                                         
               capital    expenses    of   the    state's    integrated                                                         
               comprehensive  mental health program; and providing  for                                                         
               an effective date.                                                                                               
                                                                                                                                
          AMENDMENTS:                                                                                                         
                                                                                                                                
                MILITARY & VETERANS AFFAIRS                                                                                     
                COURT SYSTEM                                                                                                    
      REVENUE                                                                                                                   
      PUBLIC SAFETY                                                                                                             
      FISH & GAME                                                                                                               
      CORRECTIONS                                                                                                               
      LAW                                                                                                                       
      NATURAL RESOURCES                                                                                                         
      ADMINISTRATION                                                                                                            
      TRANSPORTATION & PUBLIC FACILITIES                                                                                        
      ENVIRONMENTAL CONSERVATION                                                                                                
      COMMUNITY & ECONOMIC DEVELOPMENT                                                                                          
                                                                                                                                
MILITARY AND VETERANS AFFAIRS                                                                                                 
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT MVA-1.  Representative Davies                                                                    
OBJECTED for  discussion.  He asked  how the amendment would                                                                    
expand the mission for the Department.                                                                                          
                                                                                                                                
     Disaster Planning and Control                                                                                              
     Local Emergency Planning Committee Grants                                                                                  
     $50.0 ILTF                                                                                                                 
                                                                                                                                
Co-Chair Mulder  explained that the  amendment would replace                                                                    
IA/OILHAZ  funds  eliminated in  the  Governor's  budget and                                                                    
would allow for some emergency planning.                                                                                        
                                                                                                                                
Representative Foster noted that the request was part of the                                                                    
Department's  mission.    He  mentioned that  Commissioner's                                                                    
priorities    had    not    included    emergency   planning                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Mulder interjected that emergency planning had been                                                                    
shifted from the Department of Environmental Conservation to                                                                    
Department of Military & Veterans Affairs.  He added that it                                                                    
was a mission expansion.                                                                                                        
                                                                                                                                
Representative Davies  asked where that  Division belongs if                                                                    
it does not belong in the proposed section.  Co-Chair Mulder                                                                    
agreed that it  was appropriate for it  to be located there.                                                                    
Representative  Davies reiterated  the question  of how this                                                                    
would be an expanded role.                                                                                                      
                                                                                                                                
Representative  Hudson stated  that the increment  was taken                                                                    
out of the Response  Fund during the Exxon Valdez oil spill.                                                                    
The emergency  response agencies  were established primarily                                                                    
on the basis of putting together oil spill response plans to                                                                    
provide  the oversight  in the regions.   He  suggested that                                                                    
this was  a request  for funding  outside of  that scope and                                                                    
would expand the scope of those functions.                                                                                      
                                                                                                                                
          Representative  Foster pointed out that three cents  a barrel                                                         
          was  placed into that fund and  at that time, oil  production                                                         
          was double what it currently is.                                                                                      
                                                                                                                                
          LARRY  LABOLLE, STAFF, REPRESENTATIVE  FOSTER, explained  the                                                         
          history of  the issue and when the transfer  from departments                                                         
          occurred.   He commented that the issue is if  the department                                                         
          is going  to do all hazards planning, the three  cents cannot                                                         
          be  used for  that purpose.   He  exclaimed that  this is  an                                                         
          unfunded mandate  by law.  That is the only funding  that has                                                         
          gone into those grants.  Additionally,  the Department is the                                                         
          responding  authority for hazards, however, if there  were an                                                         
          oil spill, the Department would not be the lead agency.                                                               
                                                                                                                                
          There being NO further OBJECTION,  the amendment was adopted.                                                         
                                                                                                                                
          Representative Davies MOVED  to ADOPT MVA-2.  Co-Chair Mulder                                                         
          OBJECTED.                                                                                                             
                                                                                                                                
               Alaska National Guard                                                                                            
               Air Guard Facilities Maintenance                                                                                 
               $60.0 GF                                                                                                         
                                                                                                                                
          Representative   Davies   explained   that  the   Air   Guard                                                         
          Facilities  Maintenance component  requested an increment  of                                                         
          $60.0 for the management of  all State retirement records for                                                         
          Air  and Army National Guard  employees. Currently, there  is                                                         
          no State of Alaska employee to manage the program.                                                                    
                                                                                                                                
          The  Air and Army National  Guard maintains an active  record                                                         
          base  of over 3800 members.  They also maintain over  108,000                                                         
          inactive  records. The scope  of state records management  is                                                         
          extensive.  Each time  a personnel action  occurs during  the                                                         
          career  of an Alaska National  Guard member, a  corresponding                                                         
          change must  occur in that person's state  retirement record.                                                         
          Records   management   also    encompasses   calculation   of                                                         
          retirement  eligibility,  performing periodic  state  records                                                         
          audits, and writing and filing  any state awards. Perhaps the                                                         
          most  critical  duty in  records maintenance  is  calculating                                                         
          accurate  retirement  points   for  computing  guard  members                                                         
          retirement benefits.                                                                                                  
                                                                                                                                
          So  far this  federal fiscal year,  500 records  transactions                                                         
          were  filed  for  Air  Guard members  alone.  Many  of  these                                                         
          transactions take hours to accomplish.  Federal employees, to                                                         
          the detriment  of their primary duties, have  performed these                                                         
          actions to date.                                                                                                      
                                                                                                                                
          Representative  J. Davies emphasized  that it is critical  to                                                         
          establish a State of Alaska  employee to administer the state                                                         
          program.  If  not funded,  state retirement  information  for                                                         
          Guard  members  will  continue  to be  a  burden  on  federal                                                         
          employees  that maintain the records  when they can. Lack  of                                                         
          adequate  attention to  these  records has  the potential  to                                                         
cause late retirement payments to members of the Guard.                                                                         
                                                                                                                                
Co-Chair  Mulder replied  that they have  functioned without                                                                    
the position  and that each Department  has been asked to do                                                                    
more with less.                                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Davies MOVED to ADOPT MVA-3.  Co-Chair Mulder                                                                    
OBJECTED.                                                                                                                       
                                                                                                                                
     Alaska National Guard                                                                                                      
     State Active Duty                                                                                                          
                                                                                                                                
     General Fund $107.0                                                                                                        
                                                                                                                                
Representative Davies explained that the Department believes                                                                    
that the Alaska National Guard will see a further erosion of                                                                    
its ability  to recruit and retain  members from rural areas                                                                    
of the State  without a concerted  effort in that direction.                                                                    
The Alaska  National  Guard Scouts have  had a  long history                                                                    
with the National Guard.  He emphasized that they are unique                                                                    
in  the nation.  The Department  is  losing ground  in these                                                                    
areas and believes  this request to fund  an Office of Rural                                                                    
Affairs  would  assist in  the  continuation  of  the Alaska                                                                    
Scouts.                                                                                                                         
                                                                                                                                
Co-Chair Mulder  mentioned that  in the  Language Section of                                                                    
the  bill,  $250  thousand  dollars  had  been  provided for                                                                    
tuition assistance.  He added that last year, seed money had                                                                    
been provided  and that it had  been effective. He commented                                                                    
that effort had been expanded.                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft, Foster                                                                                     
OPPOSED:       Harris, Hudson, Lancaster, Whitaker, Bunde,                                                                      
               Williams, Mulder                                                                                                 
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED  to ADOPT MVA-4.  Co-Chair Mulder                                                                    
OBJECTED.                                                                                                                       
                                                                                                                                
     Alaska Military Youth Academy       $111.8 GF Match                                                                        
                                                                                                                                
Representative Croft stated  that to reduce the Food Service                                                                    
increment by  $111.8 in the general fund  match would have a                                                                    
          significant impact on the Military Youth Academy.                                                                     
                                                                                                                                
          He  clarified that it  would reduce  the Academy's chance  to                                                         
          have  adequate  funding for  the  employees who  prepare  and                                                         
          serve  meals to  the cadets  in  the program.  The $111.8  is                                                         
          needed  to help solve the long  term staffing problem  at the                                                         
          dining facility.                                                                                                      
                                                                                                                                
          If  the reduction  remains,  the Academy  will  have to  take                                                         
          drastic  measures to assure  the ability  to stay within  its                                                         
          overall  budget authorization.   They might have to  consider                                                         
          switching  to serving a  cold breakfast, a  hot lunch, and  a                                                         
          sack  dinner.  The cut  would cause a significant  disruption                                                         
          to  the cadet's  training  schedule, physical  training,  and                                                         
          academics.    The  proposed   cut  could  cause  the  cadet's                                                         
          cooperative  work  experience in  which they  learn  culinary                                                         
          skills in the dining facility.                                                                                        
                                                                                                                                
          Co-Chair  Mulder commented that  there had been an  allowance                                                         
          in  by the  Subcommittee.  He  added that  the increment  had                                                         
          been allocated the required 40% match.                                                                                
                                                                                                                                
          Representative   Davies  commented  that  this  issue   would                                                         
          continue  to reappear in the budget.   If the State  does not                                                         
          cover State employees appropriately,  it will be increasingly                                                         
          difficult to  recruit.  He stressed that  compensation levels                                                         
          are not competitive in the State of Alaska.                                                                           
                                                                                                                                
          Co-Chair  Mulder  acknowledged   that  the  work  that  those                                                         
          employees do is a "labor of  love" and knew that there exists                                                         
          a  "burn  out"  factor.    He  noted  that  the  Subcommittee                                                         
          proposed funding for two-thirds of the increase.                                                                      
                                                                                                                                
          Representative  Croft  commended  Representative  Foster  for                                                         
          doing  good job  in funding  the priorities.   He  reiterated                                                         
          that this  program is wonderful and that it should  be funded                                                         
          appropriately.  He questioned the right policy choice.                                                                
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:      Davies, Moses, Croft                                                                                   
          OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                           
                   Bunde, Williams, Mulder                                                                                      
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          Representative   Davies  amended  [sds1]MVA-5 to  $40.8;  and                                                         
          changed  the funding source  to ILTF. [sds2] Representative J.                                                        
          Davies  MOVED to ADOPT  the amended  MVA-5.  Co-Chair  Mulder                                                         
          OBJECTED.                                                                                                             
                                                                                                                                
               Disaster  Planning and Control                                                                                   
               Local Emergency Planning Committee Grants                                                                        
                                                                                                                                
     $40.8 ILTF                                                                                                                 
                                                                                                                                
Representative  Davies  stated  that  the  Subcommittee  had                                                                    
referred the request to the full House Finance Committee for                                                                    
review accompanied with a comment that this is not typically                                                                    
one of DMVA's primary  missions and should not come from the                                                                    
general fund allocation for DMVA.                                                                                               
                                                                                                                                
The Governor's budget  supported replacing general funds for                                                                    
the FY02  projected shortfall  of $69.8  in Oil  & Hazardous                                                                    
Response  Funding  (OHRF). The  shortfall  is  based  on the                                                                    
statutory level  of 3% funding from the  OHRF.  In addition,                                                                    
the  Governor's budget  addressed the  issue of  the LEPC's,                                                                    
looking at all  hazards by adding $21.0  more to the general                                                                    
fund as compared to last year's budget.                                                                                         
                                                                                                                                
Representative J. Davies continued, without these funds, the                                                                    
LEPC budgets would have to be reduced proportionately.   The                                                                    
consequence of that action would be that the LEPC's would be                                                                    
meeting less  and that the  State would be  less prepared to                                                                    
respond to disasters.                                                                                                           
                                                                                                                                
Co-Chair  Mulder  countered that  there  is  a  very limited                                                                    
amount of ILTF  this year and the  potion not used in MVA-#1                                                                    
will be used in another amendment during the budget process.                                                                    
                                                                                                                                
Representative   Croft  sited   a   memo  from   Jan  Henry,                                                                    
Coordinator,   Office   of   Emergency   Management,   Kenai                                                                    
Peninsula, in support of  the expanded funding.  He spoke to                                                                    
the "bare bones" funding.                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Davies MOVED MVA-6  in order  to address his                                                                    
concern.  Co-Chair Mulder OBJECTED.                                                                                             
                                                                                                                                
     Alaska National Guard Benefits                                                                                             
     $100.0 GF                                                                                                                  
                                                                                                                                
Representative  Davies pointed  out,  in the  Front Section,                                                                    
Section 5, there had  been money allocated for this concern.                                                                    
With that  understanding, Representative  J. Davies WITHDREW                                                                    
MVA-#6.   He noted  that the  Subcommittee had  referred the                                                                    
request to the full House Finance Committee for review.                                                                         
                                                                                                                                
Representative  Foster voiced  his appreciation  for all the                                                                    
cooperation given by the Subcommittee.                                                                                          
                                                                                                                                
          THE ALASKA COURT SYSTEM                                                                                             
                                                                                                                                
          No amendments.                                                                                                        
                                                                                                                                
          DEPARTMENT OF REVENUE                                                                                               
                                                                                                                                
          Representative Whitaker MOVED to ADOPT REVENUE-1.                                                                     
                                                                                                                                
          Representative  Whitaker explained  that the  purpose of  the                                                         
          amendment would  add a Deputy Director position to  the staff                                                         
          of  the  Trust Authority.    The  position would  assist  the                                                         
          Executive   Director  in  managing  the  increased   workload                                                         
          associated with the transfer  of administration of the Office                                                         
          of the  Long Term Care ombudsman to the Alaska  Mental Health                                                         
          Trust Authority (AMHTA).  The  Deputy Director will assist in                                                         
          the general day to day management  of the Authority, thereby,                                                         
          freeing the  Executive Director to devote more  time pursuing                                                         
          partnership  opportunities which could significantly  improve                                                         
          the results gained from the investment of Trust income.                                                               
                                                                                                                                
          There being NO OBJECTION, REVENUE-#1 was adopted.                                                                     
                                                                                                                                
          Co-Chair  Mulder MOVED to  ADOPT REVENUE-#2.   Representative                                                         
          J. Davies OBJECTED for discussion.                                                                                    
                                                                                                                                
          Denny DeWitt,  Staff, Representative Eldon Mulder,  explained                                                         
          the  technical change that the  amendment would address.   He                                                         
          noted  that the printed  draft failed  to remove language  on                                                         
          Page  27, line  22,  "Other funds  include  125,000 from  the                                                         
          Constitutional  Budget Reserve (CBR) Fund".  The  money would                                                         
          be  included and counted in  the language section in  Section                                                         
          8©.                                                                                                                   
                                                                                                                                
          Representative  Whitaker stated that  he would not object  to                                                         
          the  proposed amendment.   Representative J. Davies  WITHDREW                                                         
          the  objection.  There  being NO  further OBJECTIONS, it  was                                                         
          adopted.                                                                                                              
                                                                                                                                
          Representative Davies MOVED to ADOPT REVNUE-#3.                                                                       
                                                                                                                                
               ADD:                                                                                                           
               Department          Revenue                                                                                      
               BRU                 Permanent Fund Dividend                                                                      
               Component           Permanent Fund Dividend                                                                      
                                                                                                                                
               FUND SOURCE         AMOUNT                                                                                       
               PFD Fund            $116.5                                                                                       
                                                                                                                                
          Representative   J.   Davies   explained   that   the   House                                                         
          Subcommittee   had  closed   out  prior   to  the   amendment                                                         
          submission.    There  being   NO  OBJECTION,  REVENUE-#3  was                                                         
          adopted.                                                                                                              
                                                                                                                                
DEPARTMENT OF PUBLIC SAFETY                                                                                                   
                                                                                                                                
Vice-Chair  Bunde  MOVED to  adopt  DPS-#1.   Representative                                                                    
Davies OBJECTED for a question.                                                                                                 
                                                                                                                                
     Department of Public Safety                                                                                                
     (Council on Domestic Violence and Sexual Assault)                                                                          
                                                                                                                                
     BRU:  Fish and Wildlife Protection                                                                                         
     Component:  Enforcement and Investigative Services Unit                                                                    
     Delete:  150.0 General Fund                                                                                                
     Add:   150.0 Fish and Game                                                                                                 
                                                                                                                                
     BRU:  Alaska State Trooper Detachments                                                                                     
     Component: Alaska State Trooper Detachments                                                                                
     Delete:  120.0 General Fund                                                                                                
                                                                                                                                
    BRU:  Council on Domestic Violence and Sexual Assault                                                                       
     Component:  Council on Domestic Violence and Sexual                                                                        
     Assault                                                                                                                    
     Add:  200.0 Federal Funds                                                                                                  
     Add:  270.0 General Fund                                                                                                   
                                                                                                                                
Vice-Chair  Bunde  explained that  the  amendment  would add                                                                    
$450.0 in funding for direct victim services through shelter                                                                    
programs.   He added that  $20.0 was used  by the Council to                                                                    
provide funding to address administration of the grant.  The                                                                    
amendment is possible due to:                                                                                                   
                                                                                                                                
     ·    Receipt of  $200.0 in additional grant funding                                                                        
        noticed by the  federal Office  of Mandatory Grants,                                                                    
        Family Violence Prevention & Services, subsequent to                                                                    
        Subcommittee closeout.                                                                                                  
    ·    Elimination of a forecasted shortfall in Fish and                                                                      
        Game Fund receipts thereby  allowing a net zero fund                                                                    
        source change in  the Division of  Fish and Wildlife                                                                    
        Protection that  frees  up  $150.0  GF  that  can be                                                                    
        reallocated to the Council.                                                                                             
   ·    Reduction to the increment for trooper recruitment                                                                      
        efforts by $120.0.  It  would reallocate those funds                                                                    
        to CDVSA victim  services to sustain  FY 2001 victim                                                                    
        service levels.                                                                                                         
                                                                                                                                
Representative  Croft  claimed that  the  proposed amendment                                                                    
could alleviate concerns voiced by the Counsel.                                                                                 
                                                                                                                                
Representative Davies asked if those funds would be replaced                                                                    
somewhere in the budget.                                                                                                        
                                                                                                                                
There being NO further OBJECTION, DPS-#1 was adopted.                                                                           
                                                                                                                                
Representative  Moses  MOVED to  ADOPT  DPS-#2.   Vice-Chair                                                                    
Bunde OBJECTED.                                                                                                                 
                                                                                                                                
               ADD:                                                                                                             
               Department of Public Safety                                                                                      
               Fish & wildlife Protection                                                                                       
               Enforcement & Investigative Services Unit                                                                        
                                                                                                                                
               FUND SOURCE:        AMOUNT                                                                                   
               General Funds       $1,280.0                                                                                     
                                                                                                                                
          Representative   Moses  advised  that  the  amendment   would                                                         
          provide  eight  new  FWP  commissioned  officers  to  provide                                                         
          critical fish and wildlife enforcement.                                                                               
                                                                                                                                
          Representative  Moses noted  that two  of the  ten FWP  State                                                         
          Troopers  requested  by  the   Governor  are  funded  by  the                                                         
          Subcommittee  proposal. Without the  approval of all ten  FWP                                                         
          troopers  improving  resource  protection  in  important  but                                                         
          minimally  patrolled  regions  of  the  State  would  not  be                                                         
          possible.   Fundamental fish  and game management  objectives                                                         
          would  not be achieved in  those enforcement areas unable  to                                                         
          be patrolled.  Resource users  would continue to access those                                                         
          areas without  adequate patrol and user contact made  by Fish                                                         
          and Wildlife Troopers.                                                                                                
                                                                                                                                
          Vice-Chair Bunde agreed, noting  that the Subcommittee placed                                                         
          $320  thousand dollars into  the budget  for new brown  shirt                                                         
          positions.                                                                                                            
                                                                                                                                
          Representative  Croft stated that  the State could expect  to                                                         
          see the  amount of money generated from  enforcement decrease                                                         
          as the enforcement commitment goes down.                                                                              
                                                                                                                                
          TAPE HFC 01 - 43, Side B                                                                                            
                                                                                                                                
          Representative  Croft recalled that  this type of concern  is                                                         
          what  the State  fought for  during statehood.   He  stressed                                                         
          that the increment pays for management.                                                                               
                                                                                                                                
          Vice-Chair  Bunde  did  not  believe that  this  would  be  a                                                         
          revenue source that the State  could predict.  Representative                                                         
          Davies  interjected that  is the  issue and  should be  taken                                                         
          into  account.   He  asked if  the  State expected  any  fine                                                         
          recovery  from that  activity.  Vice-Chair  Bunde noted  that                                                         
          the fines collected go to the general fund.                                                                           
                                                                                                                                
          Representative  Hudson noted that the there has  been concern                                                         
          voiced  regarding   "creek  robbing".    There  has   been  a                                                         
          suggestion  that the industry  that live  on the fish,  there                                                         
          should be a measure or tax of  around 1% for that enforcement                                                         
          cost.  He acknowledged that  would be a whole new initiative.                                                         
                                                                                                                                
                                                                                                                                
          KENNETH   BISCHOFF,  DIRECTOR,  DIVISION  OF   ADMINISTRATIVE                                                         
          SERVICES,  DEPARTMENT OF PUBLIC SAFETY, concurred  that every                                                         
year there  are cases  in which  those funds  are necessary.                                                                    
There is language in the language section of the bill, which                                                                    
appropriates  the funds to  the fish  and game  fund.  Every                                                                    
year, there are cases  that generate fines.  He acknowledged                                                                    
that it became a sensitive closeout issue and that it was an                                                                    
unstable revenue source.                                                                                                        
                                                                                                                                
Representative  Moses  concluded  that  doubling  the number                                                                    
would be not adequate.  He emphasized that it is the State's                                                                    
obligation to  protect the resource.   The non-residents are                                                                    
the "real"  violators;  it has become  a money  making deal.                                                                    
The residents  are asking  for the  additional protection to                                                                    
protect the State's resource.                                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Moses  MOVED to  ADOPT  DPS-#3.   Vice-Chair                                                                    
Bunde OBJECTED.                                                                                                                 
                                                                                                                                
     ADD:                                                                                                                       
     Department of Public Safety                                                                                                
     Criminal Investigations Bureau                                                                                             
                                                                                                                                
     FUND SOURCE              AMOUNT                                                                                        
     General Funds            $89.5                                                                                             
                                                                                                                                
Representative Moses  explained that the  money would fund a                                                                    
portion of the  costs for one new  trooper for the Statewide                                                                    
Drug  Enforcement Unit  in the  AST  Criminal Investigations                                                                    
Bureau.                                                                                                                         
                                                                                                                                
One of  the ten new  Alaska State Troopers  requested by the                                                                    
Governor to  funded by general funds  was included under the                                                                    
subcommittee proposal  in the AST  Detachments BRU.  Without                                                                    
the  additional nine  troopers,  the Alaska  State Troopers'                                                                    
field operations will continue  as it has in the past, which                                                                    
is in a  purely "reactive" mode.   The new trooper positions                                                                    
would  have  allowed  AST  to  become  "proactive"  and  get                                                                    
involved in "community policing".                                                                                               
                                                                                                                                
Representative  Moses   emphasized  that  this  funding  was                                                                    
seriously needed throughout the State.                                                                                          
                                                                                                                                
Vice-Chair  Bunde agreed  that further drug  enforcement was                                                                    
needed.  He  pointed out that there  is funding for four new                                                                    
blue shirts.                                                                                                                    
                                                                                                                                
          Representative  Davies  spoke  to  the  need  for  additional                                                         
          troopers for  the category for community policing  aspects of                                                         
          the  concern.  He emphasized  how under-staffed the  troopers                                                         
          are  throughout the State.   He stressed the tragic level  of                                                         
          State law enforcement.                                                                                                
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:      Davies, Moses, Croft                                                                                   
          OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                           
                         Bunde, Williams                                                                                        
                                                                                                                                
          Co-Chair Mulder was not present for the vote.                                                                         
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          Representative  Moses  MOVED  to ADOPT  DPS-#4.    Vice-Chair                                                         
          Bunde OBJECTED.                                                                                                       
                                                                                                                                
               ADD:                                                                                                             
               Department of Public Safety                                                                                      
               Alaska State Trooper Detachments                                                                                 
                                                                                                                                
               FUND SOURCE                    AMOUNT                                                                        
               General Funds                  $1,350.1                                                                          
                                                                                                                                
          Representative Moses explained  that the amendment would fund                                                         
          eight  new troopers and  related costs.   One of the ten  new                                                         
          Alaska State Troopers requested  by the Governor to be funded                                                         
          by  general   funds  was  included  under  the   Subcommittee                                                         
          proposal in the AST Detachment BRU.                                                                                   
                                                                                                                                
          Representative  Moses  stated  that  without  the  additional                                                         
          troopers,  the Alaska State  Troopers' field operations  will                                                         
          continue  as it has been  in the past,  which is in a  purely                                                         
          "reactive"  mode.    The new  trooper  positions  would  have                                                         
          allowed  AST  to  become  "proactive"  and  get  involved  in                                                         
          "community policing".                                                                                                 
                                                                                                                                
          Representative  Davies reiterated that the fact is  the State                                                         
          is seriously understaffed right  now.  The State Troopers are                                                         
          totally  in an emergency mode.   They have virtually  no time                                                         
          to do any  preventative efforts.  He provided a graph  of the                                                         
          staffing  levels  for the  State  Troopers  since 1980.    He                                                         
          pointed  out  the drastic  drop  since 1987.    Additionally,                                                         
          since  1994, the levels have  been continually cut,  however,                                                         
          the  population  continues to  increase.   Representative  J.                                                         
          Davies emphasized  that the need is very real with  the climb                                                         
          of the population.                                                                                                    
                                                                                                                                
          Representative Lancaster concurred  that the need would never                                                         
          decrease  and added that the  funding source is the  concern.                                                         
          He  did  not believe  that it  was  a program  receipt  based                                                         
          concern.                                                                                                              
                                                                                                                                
Representative  Croft  commented  that  this  is  where  the                                                                    
"rubber hits  the road" in concerns with  public safety.  He                                                                    
reiterated that  funding has  been flat for  a decade, while                                                                    
the population has increased.                                                                                                   
                                                                                                                                
Representative  Davies emphasized  that  public safety  is a                                                                    
core section  of government.   He believed  that the general                                                                    
fund is the source  from which the concern should be funded.                                                                    
He added  that a personal  income tax could  help to address                                                                    
these  concerns.     Representative  J.  Davies  noted  that                                                                    
virtually every  other state in the nation  has some form of                                                                    
state income  tax.  That money serves  the core functions of                                                                    
government.   He stressed  that there  is a  "disconnect" in                                                                    
Alaska's State  budget.  He predicted  that the problems are                                                                    
going to get worse.   The question is how can Alaska address                                                                    
the core needs.                                                                                                                 
                                                                                                                                
Vice-Chair  Bunde  agreed  that  public  safety  is  core to                                                                    
central  government.   He suggested  that  adequate coverage                                                                    
changes from area to  area.  He maintained that the proposed                                                                    
budget  reflects  what  the  majority  of Alaska's  citizens                                                                    
believe is adequate.                                                                                                            
                                                                                                                                
Co-Chair  Williams agreed  that the  State needs  to come up                                                                    
with  a long-term  fiscal plan.   He  indicated that  he was                                                                    
confident that there would  be a plan that would come before                                                                    
the Committee, which would address the "whole" concern.                                                                         
                                                                                                                                
Representative  Moses countered  that State  government does                                                                    
have the resources to  pay for citizen's safety.  He advised                                                                    
that he will continue to do what is right for the State, not                                                                    
what will get him reelected to office.  He stressed that was                                                                    
an obligation of each representative in State government.                                                                       
                                                                                                                                
Representative Croft agreed with the need for the long-range                                                                    
fiscal plan.  He commented, however, the question before the                                                                    
Committee is if the amount proposed for the operating budget                                                                    
for public  safety an  adequate level of  State spending for                                                                    
public safety.                                                                                                                  
                                                                                                                                
Representative Hudson made  the comparison of spending needs                                                                    
versus the funding  stream.  He encouraged Committee members                                                                    
to work together to determine that revenue steam.                                                                               
                                                                                                                                
Representative Whitaker advised  that the ability to pay for                                                                    
the service is what  the discussion is about.  He maintained                                                                    
that during  a period  of an  economic decline,  it would be                                                                    
dangerous  to  propose  growth.    He  believed  that  State                                                                    
government should provide for economic growth.                                                                                  
                                                                                                                                
Representative Davies  agreed that the  concern continues to                                                                    
be a fundamental economic problem.      He  agreed  with the                                                                    
need for investments  in the basic State infrastructure that                                                                    
          allow  business  to  flourish.     Currently,  the  State  is                                                         
          constraining  business  because  the  State  is  not  issuing                                                         
          permits  on time.   The Alaskan  economy has  not achieved  a                                                         
          balance  for the economy to  work from.  He recommended  that                                                         
          the Legislature has to prime the pump.                                                                                
                                                                                                                                
          *TAPE HFC 01 - 44, Side A                                                                                           
                                                                                                                                
          Representative  Davies stated that the numbers  are arbitrary                                                         
          and are based on the revenue stream.                                                                                  
                                                                                                                                
          Co-Chair  Williams reiterated that  most of the concerns  are                                                         
          valid,  however, it is  important to keep  in mind the  long-                                                         
          term   fiscal  plan.  The   Governor's  proposal   recommends                                                         
          spending  more than expected  revenues. He stressed the  need                                                         
          for a  long-term fiscal plan. He emphasized the need  to keep                                                         
          spending down until there is a long-range plan.                                                                       
                                                                                                                                
          Representative   Croft  questioned  if  anyone  thought   the                                                         
          funding level for the Alaska  State Troopers was adequate and                                                         
          emphasized that public safety should be funded.                                                                       
                                                                                                                                
          Representative  Moses  noted  that  the state  has  money  in                                                         
          savings accounts, yet basic needs are not being addressed.                                                            
                                                                                                                                
          Representative Whitaker maintained  that there is interest in                                                         
          a  long-term  plan  and  estimated   that  a  plan  would  be                                                         
          developed before the end of the session.                                                                              
                                                                                                                                
          A roll call vote was taken on the motion to adopt DPS-#4.                                                             
                                                                                                                                
          IN FAVOR: Croft, Davies, Foster, Moses                                                                                
          OPPOSED:  Bunde,   Harris,   Hudson,   Lancaster,   Whitaker,                                                         
                    Mulder, Williams                                                                                            
                                                                                                                                
          The MOTION FAILED (4-7).                                                                                              
                                                                                                                                
     Representative Moses MOVED to ADOPT Amendment DPS-5:                                                                       
                                                                                                                                
               ADD                                                                                                              
                                                                                                                                
               Department:         Public Safety                                                                                
               BRU:           Alaska State Trooper Detachments                                                                  
               Component:     Alaska State Trooper Detachments                                                                  
                                                                                                                                
               Fund Source               Amount                                                                                 
               General Funds       $838.0                                                                                       
                                                                                                                                
               Explanation:                                                                                                     
               Fund 8 constables for the rural law enforcement                                                                  
               initiative.                                                                                                      
                                                                                                                                
               The impact of reduction of $838.0 GF provides no                                                                 
               funding for eight new constables requested by the                                                                
     Governor.  The  intent of this increment request was to                                                                    
     establish a local  certified police officer presence in                                                                    
     rural  areas of  AST jurisdiction.   The  Department of                                                                    
     Public  Safety has long  advocated that  successful law                                                                    
     enforcement is dependent upon an effort that includes a                                                                    
     traditional  and  regular law  enforcement  presence as                                                                    
     well   as  other   pro-active  programs   that  address                                                                    
     educational,  social   and  community  concerns.    The                                                                    
     constables,   through  their  long-term   residency  in                                                                    
     communities  promote   that  concept.     Education  on                                                                    
     important  topics such  as  alcohol, drug  and inhalant                                                                    
     abuse, boating safety,  search and rescue, and domestic                                                                    
     violence help build  an efficient and responsive public                                                                    
     safety  presence,  thereby  improving  service  and the                                                                    
     relationships with individuals in these communities.                                                                       
                                                                                                                                
Representative Moses spoke in support of the amendment.                                                                         
                                                                                                                                
Vice-Chair  Bunde pointed  out  that there  are  $15 million                                                                    
dollars in federal  funds appropriated for VPSO programs. He                                                                    
expressed the hope that  these funds would supplant the need                                                                    
for  constables.  He  suggested  that  current  programs  be                                                                    
adequately funded before new programs are created.                                                                              
                                                                                                                                
Representative Davies spoke  in support of the amendment. He                                                                    
maintained that the federal appropriation would address VPSO                                                                    
programs and not  constable programs. He emphasized that the                                                                    
federal  intent is  not  to  supplant the  state  effort. He                                                                    
emphasized  that  the   constable  program  is  a  different                                                                    
approach to  solving problems in rural  Alaska and should be                                                                    
funded.                                                                                                                         
                                                                                                                                
Representative Moses  maintained that the funds appropriated                                                                    
to the Alaska Federation  of Natives (AFN) were not intended                                                                    
to be  used for VPSO  support. He understood  that the funds                                                                    
were intended for alcohol related rural problems.                                                                               
                                                                                                                                
Co-Chair  Mulder pointed  out that the  request  would be an                                                                    
addition  to  the status  quo  budget  and  an  expansion of                                                                    
current  services.  He   spoke  against  the  amendment.  He                                                                    
questioned if the constable  approach would be the most cost                                                                    
efficient.                                                                                                                      
                                                                                                                                
Vice-Chair Bunde  noted that  a trooper  costs $160 thousand                                                                    
dollars a year and a constable costs $130 thousand dollars.                                                                     
                                                                                                                                
Representative  Croft referred  to  the $15  million dollars                                                                    
that Senator Stevens  secured for rural areas. He noted that                                                                    
the federal funds are limited to dry communities. He did not                                                                    
think that  the grant  could be  used for  anything that the                                                                    
state is not already doing. He did not think the grant could                                                                    
be used for constables.                                                                                                         
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies                                                                                        
          OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                         
                    Whitaker, Mulder, Williams                                                                                  
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
     Representative Moses MOVED to ADOPT Amendment DPS-6:                                                                       
                                                                                                                                
               ADD                                                                                                              
                                                                                                                                
               Department:         Public Safety                                                                                
               BRU:           Alaska State Trooper Detachments                                                                  
               Component:     Alaska State Trooper Detachments                                                                  
                                                                                                                                
               Fund Source               Amount                                                                                 
               General Funds       $100.0                                                                                       
                                                                                                                                
               Explanation:                                                                                                     
               Fund three new vehicles for Alaska State Troopers.                                                               
                                                                                                                                
               The  subcommittee proposal to  reduce $100.0 in GF  will                                                         
               provide  no funding to purchase 3 new  trooper vehicles.                                                         
               These  new  vehicles  were  to  help  replace  an  aging                                                         
               emergency response vehicle fleet.                                                                                
                                                                                                                                
          Representative  Moses spoke in  support of the amendment  and                                                         
    emphasized the need to provide first class equipment.                                                                       
                                                                                                                                
          Co-Chair  Mulder  suggested  that  the  amendment  should  be                                                         
          addressed in the capital budget.                                                                                      
                                                                                                                                
          Representative  Hudson agreed and  pointed out that  vehicles                                                         
     would come out of equipment fleet replacement funds.                                                                       
                                                                                                                                
          KENNETH   BISCHOFF,  DIRECTOR,  DIVISION  OF   ADMINISTRATIVE                                                         
          SERVICES,   DEPARTMENT  OF   TRANSPORTATION  clarified   that                                                         
          capital  projects  are  $25  thousand dollars  or  more.  The                                                         
          request could be a capital project.                                                                                   
                                                                                                                                
          ANNALEE   MCCONNELL,  DIRECTOR,  OFFICE  OF  MANAGEMENT   AND                                                         
          BUDGET,  OFFICE OF THE GOVERNOR  did not think that it  would                                                         
          be  good policy to  fund individual  vehicles in the  capital                                                         
          budget.  Mr. Bischoff  explained that the  request funds  the                                                         
          regular vehicles  used by troopers. Ms. McConnell  emphasized                                                         
          that it  is an on-going expense through the  Equipment Fleet.                                                         
          She  felt that funding of  the request through the  operating                                                         
          budget would  be consistent with current practice. It  is not                                                         
          a one-time item.                                                                                                      
                                                                                                                                
          Mr.  Bischoff  explained that  agencies are  responsible  for                                                         
          budgeting  for the  up front  cost of an  new vehicles.  From                                                         
          that   point  the   agency  would  pay   the  Department   of                                                         
          Administration  for replacement cost, so that there  would be                                                         
enough funds  in the capital budget  to replace the vehicle.                                                                    
He  noted  that  the  trooper  fleet  is  at  a level  where                                                                    
replacement needs to be accelerated.                                                                                            
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Croft, Davies                                                                                                  
OPPOSED:  Bunde,   Foster,    Harris,   Hudson,   Lancaster,                                                                    
          Whitaker, Mulder, Williams                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Moses MOVED to ADOPT Amendment DPS-7:                                                                            
                                                                                                                                
     ADD                                                                                                                        
                                                                                                                                
     Department:    Public Safety                                                                                               
     BRU:           Village Public Safety Officer Program                                                                       
     Component:     Contracts                                                                                                   
                                                                                                                                
     Fund Source         Amount                                                                                                 
     General Funds       $828.5                                                                                                 
                                                                                                                                
     Explanation:                                                                                                               
     Fund 15% VPSO salary  increase as part of the rural law                                                                    
     enforcement initiative.                                                                                                    
                                                                                                                                
     The impact  of this proposal  is that there  will be no                                                                    
     salary increase for  VPSOs.  Turnover rates among VPSOs                                                                    
     have been  very high.  Several  actions are needed: (1)                                                                    
     improved Trooper  oversight; (2)  better equipment; and                                                                    
     (3)  a much-needed  salary increase.   In the  past few                                                                    
     years,  AST has  beefed up  "oversight" support  of the                                                                    
     VPSOs, offered more  training, and has purchased better                                                                    
     equipment  for the  current VPSOs.    This has  in part                                                                    
     caused the turnover rate  to drop from a rate of 41% in                                                                    
     FY1998 to a rate of 29.6% in FY2000.  A salary increase                                                                    
     is needed to reduce this rate further.                                                                                     
                                                                                                                                
Representative Moses  spoke in support  of the amendment. HE                                                                    
felt that VPSO's were overdue for an increase.                                                                                  
                                                                                                                                
Vice-Chair  Bunde spoke  against the  amendment. He  was not                                                                    
confident that  a raise  would reduce the  turnover rate. He                                                                    
pointed out that  VPSO officers have the difficult situation                                                                    
of  having to  arrest or  deal in  an enforcement  role with                                                                    
their friends and relations.                                                                                                    
                                                                                                                                
Representative Davies argued that the turnover rate has been                                                                    
reduced due  to improved working  conditions: better trooper                                                                    
oversight  training, retirement  programs and  equipment. He                                                                    
suggested  that  an  increase  in  salary  would  assist  in                                                                    
reducing turnover and  is appropriate. He noted that housing                                                                    
is also an issue.  He stressed that the fundamental question                                                                    
          would  be:  is the  salary  high  enough and  suggested  that                                                         
          studies would show that the raise would be appropriate.                                                               
                                                                                                                                
          Representative  Moses spoke in  support of the amendment  and                                                         
          noted the difficulty that VPSO  offices in the community face                                                         
          when arresting friends and relatives.  He added that they are                                                         
          called on at all hours of the night.                                                                                  
                                                                                                                                
          Representative  Croft noted that the subcommittee  recognized                                                         
          the AFN grant and indicated  that it could be used to support                                                         
          the  raises. He maintained that  the grant cannot be  used to                                                         
          support  the raise.  Co-Chair Mulder  stated that  he is  not                                                         
          convinced that it could not  be used to support raises in dry                                                         
          areas.                                                                                                                
                                                                                                                                
          Representative  Croft noted  that the Subcommittee  discussed                                                         
          the request in relationship to use of the federal grant.                                                              
                                                                                                                                
          Representative  Davies suggested  that increased salaries  at                                                         
          non-dry  villages could  be matched  to dry  villages by  the                                                         
          grant.  He maintained  that salaries could  not be  increased                                                         
          only for dry villages.                                                                                                
                                                                                                                                
          Representative Croft stressed  that the grant only applies to                                                         
          dry villages.                                                                                                         
                                                                                                                                
          Representative  Davies  pointed   out  that  because  of  the                                                         
          connection between  alcohol and crime the need is  greater in                                                         
          wet communities.                                                                                                      
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies, Foster                                                                                
          OPPOSED:  Bunde,   Harris,   Hudson,   Lancaster,   Whitaker,                                                         
                    Mulder, Williams                                                                                            
                                                                                                                                
          The MOTION FAILED (4-7).                                                                                              
                                                                                                                                
     Representative Moses MOVED to ADOPT Amendment DPS-8:                                                                       
                                                                                                                                
               ADD                                                                                                              
                                                                                                                                
               Department:         Public Safety                                                                                
               BRU:           Village Public Safety Officer Program                                                             
               Component:     Contracts                                                                                         
                                                                                                                                
               Fund Source         Amount                                                                                       
               General Funds       $1,152.1                                                                                     
                                                                                                                                
               Explanation:                                                                                                     
                                                                                                                                
               Fund 20 new village public safety officers as part of                                                            
               the rural law enforcement initiative.                                                                            
                                                                                                                                
     The  impact of  this  proposal  is that  the  number of                                                                    
     funded   VPSOs   will  continue   at   present  levels.                                                                    
     Currently, there  are 73 communities  without a VPSO or                                                                    
     an Alaska Police Standards Council (APSC) certified law                                                                    
     enforcement  officer.   Without the  20 new  VPSOs with                                                                    
     support costs,  up to  20 rural villages  will not have                                                                    
     the  resident   "first  responder"   to  public  safety                                                                    
     emergencies.                                                                                                               
                                                                                                                                
Representative Moses  spoke in support  of the amendment. He                                                                    
stressed that VPSO's are badly needed in many villages.                                                                         
                                                                                                                                
Vice-Chair  Bunde acknowledged  that  the federal  grant can                                                                    
only  be  used for  dry  villages  but  emphasized  that the                                                                    
restriction is  a "carrot" to go dry.  He argued against the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative Croft  stated that it is  a poor use of state                                                                    
government to take  a federal grant as  an excuse not to pay                                                                    
for a core function of state government.                                                                                        
                                                                                                                                
Vice-Chair Bunde pointed  out that the VPSO program has been                                                                    
administered by Native organizations.                                                                                           
                                                                                                                                
Representative Moses reiterated that the intent of the grant                                                                    
was to assist communities that wanted to go dry and that the                                                                    
inclusion of  VPSO's was an attempt  to prevent the shipping                                                                    
of alcohol into  these communities. He  spoke to the need to                                                                    
reduce bootlegging.                                                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Croft, Davies, Foster, Whitaker                                                                                
OPPOSED: Bunde, Harris, Hudson, Lancaster, Mulder                                                                               
                                                                                                                                
Co-Chair Williams was absent from the vote.                                                                                     
                                                                                                                                
The MOTION FAILED (5-5).                                                                                                        
                                                                                                                                
Representative Moses WITHDREW Amendment DPS-9:                                                                                  
                                                                                                                                
     ADD                                                                                                                        
                                                                                                                                
     Department:    Public Safety                                                                                               
     BRU:           Village Public Safety Officer Program                                                                       
     Component:     Support                                                                                                     
                                                                                                                                
     Fund Source              Amount                                                                                            
     General Funds       $60.4                                                                                                  
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment DPS-10:                                                                          
                                                                                                                                
     Alaska State Troopers                                                                                                      
     Judicial Services                                                                                                          
                                                                                                                                
               ADD                                                                                                              
               $3,725.9 GF                                                                                                      
                                                                                                                                
          Representative  Davies spoke in support of the  amendment. He                                                         
          observed  that  the  request would  support  increased  court                                                         
          safety.  He noted that the Alaska  Court System has made  the                                                         
          request  for a  number of  years  and stressed  the need  for                                                         
          funding. The  program was begun with 30  authorized positions                                                         
          in  1988; there are  currently 32 positions.  In the past  12                                                         
          years  additional  judges have  been  added  in a  number  of                                                         
          communities.                                                                                                          
                                                                                                                                
          TAPE HFC 01 - 44, Side B                                                                                            
                                                                                                                                
          Representative  Davies continued to  speak in support of  the                                                         
          amendment.   He   stressed   that   demand   has   increased,                                                         
          diminishing the  service. He questioned how long it  would be                                                         
          until there  is a violent incident. He observed the  need for                                                         
          court security officers around the state.                                                                             
                                                                                                                                
          Co-Chair  Mulder  acknowledged  that  the  request  has  been                                                         
          before the  legislature for a number of years.  He recognized                                                         
          that  the threat  [of a  violent incident]  exists and  added                                                         
          that there  are scarce resources. He observed that  the state                                                         
          troopers are doing a good job.                                                                                        
                                                                                                                                
          Representative  Davies pointed  out that  in Anchorage  there                                                         
          are  three separate  buildings with  40 court  rooms and  two                                                         
          court security officers.                                                                                              
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies                                                                                        
          OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                         
                    Whitaker, Mulder, Williams                                                                                  
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          SENATOR  ROBIN TAYLOR  noted  that the  Department of  Public                                                         
          Safety  has a  fleet  of five  helicopters  and two  aircraft                                                         
          capable of long-range patrol.  One of the aircraft is used to                                                         
          transport  the  Governor and  is not  being  used for  public                                                         
          safety related  uses. He maintained that the funding  for the                                                         
          aircraft  is contained in the  Department of Fish and  Game's                                                         
          budget and should be transferred  into the Governor's budget.                                                         
          He  suggested that  the transfer  would free  funding in  the                                                         
          Department  of Public Safety for trooper use.  Senator Taylor                                                         
          noted  Petersburg has been  without a  state trooper for  the                                                         
          past five years.                                                                                                      
                                                                                                                                
          Senator Taylor  noted that the Commissioner of  Department of                                                         
          Public  Safety had  removed  six officers  from their  office                                                         
space in Anchorage in order to create a suite of offices for                                                                    
the Commissioner's Office.                                                                                                      
                                                                                                                                
RECESSED                                                                                                                      
                                                                                                                                
The Committee recessed at 12:50 p.m.                                                                                            
                                                                                                                                
RECONVENED                                                                                                                    
                                                                                                                                
The Committee reconvened at 1:20 p.m.                                                                                           
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment PS-11:                                                                           
                                                                                                                                
     Alaska State Troopers                                                                                                      
     Search and Rescue                                                                                                          
                                                                                                                                
     Add                                                                                                                        
     $350.0 GF                                                                                                                  
                                                                                                                                
Vice-Chair Bunde OBJECTED.                                                                                                      
                                                                                                                                
Representative Davies spoke  in support of the amendment. He                                                                    
noted  that the funds  would go  for avalanche  training and                                                                    
search.                                                                                                                         
                                                                                                                                
Vice-Chair Bunde  spoke against the  amendment. He suggested                                                                    
that money  might not prevent "young  males" from taking the                                                                    
risks and  that further  investment may  not prevent further                                                                    
incidents.                                                                                                                      
                                                                                                                                
Co-Chair  Mulder  stressed that  he  is  sympathetic  to the                                                                    
families  that  have  sustained  loss,  but emphasized  that                                                                    
government  cannot   protect  people   from  themselves.  He                                                                    
emphasized that  the avalanches are in  remote areas. He did                                                                    
not think the additional funds would prevent incidents.                                                                         
                                                                                                                                
Representative  Croft stressed  that  there is  a difference                                                                    
between  outlawing  activities  and  educating  people about                                                                    
where the dangers are  the worst. Public education fills the                                                                    
gap and reduces risk.  He felt it was a small investment. He                                                                    
noted that the amendment would fund the education component.                                                                    
Representative  Davies added  that the amendment  would also                                                                    
fund additional search and rescue equipment.                                                                                    
                                                                                                                                
Representative  Davies stressed  the need  for education and                                                                    
felt that  the money  would be  well spent.  Co-Chair Mulder                                                                    
pointed out that  registration fees for snowmobiles could be                                                                    
raised  with  the  excess  to  be  spent  on an  educational                                                                    
campaign.                                                                                                                       
                                                                                                                                
Representative  Hudson  agreed   that  an  addition  to  the                                                                    
licensing fee or a fee on the acquisition of equipment could                                                                    
be used to build a fund to prevent unsafe operations.                                                                           
                                                                                                                                
          Vice-Chair Bunde stated that he would support legislation to                                                          
          address age and speed limitation for use of snowmobiles.                                                              
          Representative Lancaster spoke against further regulation.                                                            
                                                                                                                                
          A roll call vote was taken on the motion to adopt Amendment                                                           
          PS-11.                                                                                                                
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies                                                                                        
          OPPOSED: Bunde,     Foster,   Harris,   Hudson,    Lancaster,                                                         
                    Whitaker, Mulder                                                                                            
                                                                                                                                
          Co-Chair Williams was absent from the vote.                                                                           
                                                                                                                                
          The MOTION FAILED (3-7).                                                                                              
                                                                                                                                
          Representative Moses HELD Amendment DPS-12:                                                                           
                                                                                                                                
               ADD                                                                                                              
                                                                                                                                
               Department:    Public Safety                                                                                     
               BRU:           Alaska State Trooper Detachments                                                                  
               Component:     Alaska State Trooper Detachments                                                                  
                                                                                                                                
               Fund Source         Amount                                                                                       
               General Funds       $22.7                                                                                        
                                                                                                                                
               Explanation:                                                                                                     
               Fully fund law enforcement recruitment effort.  The                                                              
               subcommittee proposal provides funding for $127.3 of                                                             
               the $150.0 needed for law enforcement recruitment.                                                               
                                                                                                                                
          Representative Croft Held Amendment PS-13 (copy on file.)                                                             
                                                                                                                                
          Department of Fish and Game                                                                                         
                                                                                                                                
          Co-Chair Mulder MOVED to ADOPT Amendment FG-1:                                                                        
                ADD                                                                                                             
                                                                                                                                
                Agency        Dept. of Fish & Game                                                                              
                                                                                                                                
           BRU           Administration and Support                                                                             
                                                                                                                                
           Component     Boards of Fisheries & Game                                                                             
                                                                                                                                
                Fund Source        Amount                                                                                   
                                                                                                                                
                General Funds      $66.6                                                                                        
                                                                                                                                
               Purpose: Restores Boards FY01 reduction of $56.6 and                                                             
               addition of $10.0.                                                                                               
                                                                                                                                
          Co-Chair Mulder observed that there are a number of                                                                   
          contentious issues before the Board in the next year. There                                                           
          being NO OBJECTION, it was so ordered.                                                                                
                                                                                                                                
Representative Moses MOVED to ADOPT Amendment FG-2:                                                                             
                                                                                                                              
     ADD (page 13, line 33):                                                                                                
                                                                                                                                
     AGY. Dept. of Fish & Game                                                                                                  
                                                                                                                                
     BRU. Habitat                                                                                                               
                                                                                                                                
     COM. Habitat                  $100.0 General Funds                                                                         
                                                                                                                                
     PURPOSE:   To  increase funding  for fish  and wildlife                                                                  
     habitat protection in the context of increasing oil and                                                                    
     gas exploration, and  to allow the department to try to                                                                    
     catch  up with  early  review and  permitting functions                                                                    
     regarding this exploration.                                                                                                
                                                                                                                                
Representative Moses  spoke in support  of the amendment. He                                                                    
pointed out that the Division of Habitat is currently behind                                                                    
in their work and  emphasized that there would be additional                                                                    
demand with [proposals for] a gas pipeline.                                                                                     
                                                                                                                                
Vice-Chair Bunde pointed  out that the request was not a top                                                                    
priority of the Department of Fish and Game. Co-Chair Mulder                                                                    
added  additional funding  can  be appropriated  if  the gas                                                                    
pipeline comes on line.                                                                                                         
                                                                                                                                
Representative  Davies acknowledged that  it may  not be the                                                                    
highest  priority of  the Department  of Fish  and Game, but                                                                    
emphasized  that  it  would be  a  high  priority  for those                                                                    
concerned  with oil  and  gas exploration.  He  stressed the                                                                    
impact  on  permitting. He  observed  that  problems  can be                                                                    
avoided when  the department works  with industry during the                                                                    
initial stages.                                                                                                                 
                                                                                                                                
Ms.  McConnell observed  that the  funds  would be  used for                                                                    
items outside of the gas pipeline.                                                                                              
                                                                                                                                
Vice-Chair Bunde felt that permitting would not be adversely                                                                    
affected.                                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Croft, Davies                                                                                                  
OPPOSED:  Bunde,   Foster,    Harris,   Hudson,   Lancaster,                                                                    
          Whitaker, Mulder, Williams                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Department of Corrections                                                                                                     
                                                                                                                                
Representative Mulder MOVED to ADOPT Amended Amendment DOC-1:                                                                   
                                                                                                                                
     DELETE                                                                                                                     
               Agency         Dept. of Corrections                                                                              
                                                                                                                                
          BRU            Administration & Operations                                                                            
                                                                                                                                
               Component      Inmate Health Care                                                                                
                                                                                                                                
               Fund Source         Amount                                                                                   
                                                                                                                                
               General Funds       $231.1                                                                                       
                                                                                                                                
               ADD                                                                                                              
                                                                                                                                
               Agency         Dept. of Corrections                                                                              
                                                                                                                                
          BRU            Administration & Operations                                                                            
                                                                                                                                
               Component      Inmate Health Care                                                                                
                                                                                                                                
               Fund Source    Amount                                                                                        
                                                                                                                                
               PFD Fund       $231.1                                                                                            
                                                                                                                                
               ADD                                                                                                              
                                                                                                                                
               Agency         Dept. of Corrections                                                                              
                                                                                                                                
               BRU            Administration & Operations                                                                       
                                                                                                                                
               Component      Community Jails                                                                                   
                                                                                                                                
               Fund Source         Amount                                                                                   
                                                                                                                                
               General Funds       $200.0                                                                                       
                                                                                                                                
               ADD                                                                                                              
                                                                                                                                
               Agency         Dept. of Corrections                                                                              
                                                                                                                                
               BRU            Operations and Administration                                                                     
                                                                                                                                
               Component      Anchorage Jail                                                                                    
                                                                                                                                
               Fund Source         Amount                                                                                   
                                                                                                                                
               General Funds       $31.1                                                                                        
                                                                                                                                
               Purpose:  Replace  General Funds  in Inmate Health  Care                                                         
               with PFD Funds.  Increase  funding to Community Jails by                                                         
               200.0  and  Existing Community  Residential  Centers  by                                                         
               $31.1.                                                                                                           
                                                                                                                                
          Co-Chair  Mulder  spoke  in  support  of  the  amendment.  He                                                         
          observed  that the amount of  permanent fund dividends  funds                                                         
          were  recently updated. There being  NO OBJECTION, it was  so                                                         
          ordered.                                                                                                              
                                                                                                                                
Representative Mulder MOVED to ADOPT Amendment DOC-2:                                                                           
                                                                                                                                
     ADD                                                                                                                        
                                                                                                                                
     Agency         Dept. of Corrections                                                                                        
                                                                                                                                
     BRU            Administration & Operations                                                                                 
                                                                                                                                
     Component      Anchorage Jail                                                                                              
                                                                                                                                
     Fund Source         Amount                                                                                             
                                                                                                                                
     General Funds       $600.0                                                                                                 
                                                                                                                                
Co-Chair  Mulder explained  that the Anchorage  Jail  was short                                                                 
funded. The amendment  would bring the appropriation  to within                                                                 
$20  thousand dollars  of the  original  request. He  explained                                                                 
that  the  Anchorage  Jail  item  is  broken  down  into  three                                                                 
components:  Anchorage Jail,  Sixth  Avenue  Jail, and  out-of-                                                                 
state. Transition  costs are not evident because  the Anchorage                                                                 
Jail is coming on in mid-stream                                                                                                 
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT Amendment DOC-3:                                                                                 
                                                                                                                                
      ADD                                                                                                                       
                                                                                                                                
      Agency        Dept. of Corrections                                                                                        
                                                                                                                                
      BRU           Community Residential Centers                                                                               
                                                                                                                                
      Component     Existing Community Residential Centers                                                                      
                                                                                                                                
      Fund Source        Amount                                                                                             
                                                                                                                                
      General Funds      $900.0                                                                                                 
                                                                                                                                
Co-Chair  Mulder explained  that  the funding  source would  be                                                                 
general funds.  The department's  budget would be  $2.1 million                                                                 
dollars above  the allocation  with the addition  of Amendments                                                                 
COR-1  through COR-4.  He  noted  that he  was  unable to  find                                                                 
additional funding sources.                                                                                                     
                                                                                                                                
TAPE HFC 01 - 45, Side A                                                                                                      
                                                                                                                                
There  being NO  OBJECTION,  Department  of Corrections-#3  was                                                                 
adopted.                                                                                                                        
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT DOC-#4.                                                                                          
                                                                                                                                
      ADD:                                                                                                                      
      Dept. of Corrections                                                                                                      
      Out of State Contracts                                                                                                    
                Out of State Contracts                                                                                          
                                                                                                                                
                FUND SOURCE                   AMOUNT                                                                        
                General Funds                 $500.0                                                                            
                                                                                                                                
          Co-Chair  Mulder explained that  the increment would  replace                                                         
          the  lost Violent  Offender  Incarceration Funds.   He  noted                                                         
          that there  reason that there was a decrement to  the out-of-                                                         
          state  contract established  in  last year's  timetable.   He                                                         
          stated that next year, there  would be one hundred taken from                                                         
          each   out-of-state  and  transition   them  back  into   the                                                         
          Anchorage jail. He added that  they were conservative in what                                                         
          could be saved.                                                                                                       
                                                                                                                                
          There  being NO OBJECTION,  Department of Corrections-#4  was                                                         
          adopted.                                                                                                              
                                                                                                                                
          Representative   J.  Davies   commented   on  Department   of                                                         
          Corrections-#5  and requested  that the  Department speak  to                                                         
          the concern.                                                                                                          
                                                                                                                                
           ADD:                                                                                                                 
           Department:        Corrections                                                                                       
           BRU:               Out of State Contracts                                                                            
           Component:         Out of State Contracts                                                                            
                                                                                                                                
                                                                                                                                
           FUND SOURCE                   AMOUNT                                                                             
           General Fund                  $890.0                                                                                 
                                                                                                                                
          DWAYNE    PEEPLES,   DIRECTOR,    ADMINISTRATIVE    SERVICES,                                                         
          DEPARTMENT   OF  CORRECTIONS,  stated  that  the   Governor's                                                         
          proposal  had factored  in the  phasing of  prisoners out  of                                                         
          Arizona.    The  replacement  of $500  thousand  of  loss  of                                                         
          federal funds has been adopted.   The remaining $390 thousand                                                         
          dollars  would leave the  Department a number  of beds to  be                                                         
          procured  in out-of-state  beds  at about  18  on a  12-month                                                         
          basis.                                                                                                                
                                                                                                                                
          Representative J. Davies asked  if supplemental funding would                                                         
          be considered if the need was there.                                                                                  
                                                                                                                                
          Co-Chair  Mulder  commented that  the inmate  population  has                                                         
          been  relatively stable.  He  added that the Legislature  has                                                         
          been  willing to  meet the  Department's needs  and that  the                                                         
          Subcommittee went the conservative number.                                                                            
                                                                                                                                
          Representative Davies WITHDREW DOC-#5.                                                                                
                                                                                                                                
          Representative   J.  Davies  WITHDREW  DOC-#6,  which   is  a                                                         
          duplication of DOC-#3.                                                                                                
                                                                                                                                
          Representative  J. Davies  MOVED to ADOPT  DOC-#7.   Co-Chair                                                         
          Mulder OBJECTED.                                                                                                      
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Corrections                                                                                   
     BRU            Administrations and Operations                                                                              
     Component      Institution Director's Office                                                                               
                                                                                                                                
     FUND SOURCE              AMOUNT                                                                                        
     General Fund             $100.0                                                                                            
                                                                                                                                
Representative  Davies   explained  that   the  Division  of                                                                    
institutions  oversees  twelve  Institutions,  ten community                                                                    
residential  center contract  sites, fifteen  community jail                                                                    
contracts,  Electronic  Monitoring  Programs,  inmate health                                                                    
care, out-of-state  contracts and  inmate programs providing                                                                    
incarceration and supervision of approximately 4,500 inmates                                                                    
a  month.  The Director  of  Institutions  utilizes  the two                                                                    
assistant director positions  to provide Division management                                                                    
and oversight of the above program areas as well as bringing                                                                    
the Anchorage Jail on-line.                                                                                                     
                                                                                                                                
Mr. Peeples added that in addition, the positions assist the                                                                    
Division  in development,  implementation and  operations of                                                                    
juvenile and  women's programs within  Institutions. The two                                                                    
programs are  the fastest growing  segments of institutional                                                                    
service  demands  and  that  the  Director  of  Institutions                                                                    
requires assistance from  these positions to provide overall                                                                    
management.   He  added   that  consistent   management  and                                                                    
oversight  are  critical  to  the  safety  and  security  of                                                                    
prisoners incarcerated  throughout the  State and  in out of                                                                    
State   contract   facilities  and   to   the   delivery  of                                                                    
rehabilitative services.                                                                                                        
                                                                                                                                
Co-Chair  Mulder  responded  that  the  State  is  no longer                                                                    
dealing with the Cleary compliance issues.  He believed that                                                                    
would free up personnel to address other issues.                                                                                
                                                                                                                                
Representative  Davies  commented  that  the  need  for  the                                                                    
management  of the  prison populations  is  not going  to go                                                                    
away.  The State needs  to continue to do that management if                                                                    
the State does not want to go into another Court settlement.                                                                    
                                                                                                                                
Mr. Peeples  advised  that the Department  is going  into an                                                                    
aggressive  stance in becoming  ACL accredited,  which would                                                                    
provide  for maintenance  of nationally  accepted standards.                                                                    
He emphasized that  one of the requested assistant positions                                                                    
would be addressing that concern.                                                                                               
                                                                                                                                
Representative  Davies  MOVED  to  AMEND  the  amendment  to                                                                    
indicate $100 thousand dollars general funds.                                                                                   
                                                                                                                                
Co-Chair Mulder  commented on  the budget  options that were                                                                    
available  to the  Subcommittee.  He indicated  that  he had                                                                    
chose to allow flexibility  and latitude for management.  He                                                                    
          stated  that whether  the  component is  funded  or not,  the                                                         
          function would be filled regardless.                                                                                  
                                                                                                                                
          Representative   Davies  inquired  if   there  would  be   an                                                         
          unallocated  reduction.   Co-Chair  Mulder replied  that  the                                                         
          intent is to take a conservative approach.                                                                            
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:      Davies, Moses, Croft                                                                                   
          OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                           
                   Bunde, Williams, Mulder                                                                                      
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          Representative  Davies  MOVED  to  ADOPT  DOC-#8.    Co-Chair                                                         
          Mulder OBJECTED.                                                                                                      
                                                                                                                                
               ADD:                                                                                                             
               Department          Department of Corrections                                                                    
               BRU                 Administration and Operations                                                                
               Component           Inmate Programs                                                                              
                                                                                                                                
               FUND SOURCE               AMOUNT                                                                             
               General Fund              $226.0                                                                                 
                                                                                                                                
          Representative  Davies  explained  that  the  impact  of  not                                                         
          funding  $226.0  for  the Inmate  Substance  Abuse  Treatment                                                         
          (ISAT)  program  would  be  that  the  Department  would  not                                                         
          sustain  current service  levels.   A  significant number  of                                                         
          inmates  are  incarcerated due  to alcohol  related  behavior                                                         
          issues.    Alcohol  is  a  public   health  problem  and  the                                                         
          Department  needs to pursue  continued treatment rather  than                                                         
          reduced treatment.  The funds do not create new  programs but                                                         
          would sustain  services at the current level.  These services                                                         
          include  assessments, education, treatment in individual  and                                                         
          group  settings, and post release  planning for aftercare  in                                                         
          the community.  The public is  pursuing greater penalties and                                                         
          more  substance  abuse programming  for  incarcerated  felony                                                         
          Driving  While  Intoxicated  (DWI) cases.  Representative  J.                                                         
          Davies stressed that it would  be a step backwards to cut the                                                         
          ISAT programs.                                                                                                        
                                                                                                                                
          Co-Chair  Mulder explained that  this should be an  increment                                                         
          in the mental health budget  and noted that it was not in the                                                         
          House Majority's priority list.                                                                                       
                                                                                                                                
          Mr.  Peeples commented that  the request would handle  status                                                         
          quo  replacement adjustments  for the  alcohol and  substance                                                         
          abuse  contract programs.  The  program has not received  any                                                         
          increase  for the last six to  ten years; however, there  are                                                         
          more  and more demands on the  programs.  He emphasized  that                                                         
          this has been an on-going issue for many years.                                                                       
                                                                                                                                
Co-Chair Mulder responded that there had been dollars placed                                                                    
into that component. Representative Davies stressed that the                                                                    
State  is funding  a  status  quo effort.    Co-Chair Mulder                                                                    
pointed out  that the Department  of Corrections budget will                                                                    
increase this year by $3 million dollars.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to adopt DOC-#9.  Co-Chair Mulder                                                                    
OBJECTED.                                                                                                                       
                                                                                                                                
 ADD:                                                                                                                           
 Department              Department of Corrections                                                                              
 BRU                     Administrations and Operations                                                                         
 Component               Inmate Health Care                                                                                     
                                                                                                                                
 FUND SOURCE                  AMOUNT                                                                                        
 General Fund                 $654.0                                                                                            
                                                                                                                                
Representative Croft  explained that due  to difficulties in                                                                    
recruiting  and  retaining   some  of  the  84  health  care                                                                    
professionals, $654.5 general fund dollars are needed in the                                                                    
Inmate Health  Component to  enable the Agency  to provide a                                                                    
two-range salary increase to all Nurse's, Licensed Practical                                                                    
Nurse's, and  Health Practitioner's  working at correctional                                                                    
institutions.  He pointed out that Alaska is not competitive                                                                    
in wages  paid to health practitioners  or skilled and semi-                                                                    
skilled  nursing  positions.  The  two-range  increase would                                                                    
place the State of  Alaska in the competitive arena, but not                                                                    
on the  leading edge.   Without the  funding, the Department                                                                    
will   have  to   reduce  medical   staff  in   the  24-hour                                                                    
institutions by approximately 12 to 14 positions.                                                                               
                                                                                                                                
Co-Chair Mulder  explained that last  year; the Subcommittee                                                                    
requested that the  Department reduce overall nursing levels                                                                    
by  ten.    The   Department  reduced  the  level  by  seven                                                                    
positions.   The  Department refused  to contract  that out.                                                                    
With the proposed pay raise for nurses, he suggested that it                                                                    
would be  better to contract  it out in  the private sector.                                                                    
He believed  that the  Department views  institutions like a                                                                    
"hospital", providing  nursing on 24-hour  bases.  He stated                                                                    
that was not justified.                                                                                                         
                                                                                                                                
Mr.  Peeples responded  that this  is a  complex issue.   He                                                                    
admitted that the Department has provided a "hard" review of                                                                    
the  nursing  staff.   He  noted that  there  has  been some                                                                    
reconfiguration.   He  noted that  not all  institutions are                                                                    
7/24 status.   In the  heavy booking  institutions, Title 47                                                                    
          requires  a 7/24 status.   There needs  to be better  medical                                                         
          records.   There are other things that the Department  can do                                                         
          for  cost control mechanisms; however,  it will take time  to                                                         
          "shake-down".                                                                                                         
                                                                                                                                
          Co-Chair  Mulder  asked if  the  ACA standards  required  the                                                         
          level  of nursing  that  the Department  currently  provides.                                                         
          Mr. Peeples responded that in  a high booking facility, there                                                         
          must be coverage.                                                                                                     
                                                                                                                                
          Representative Croft questioned  how could the Department not                                                         
          provide  that 7/24  service.   Mr. Peeples  replied that  the                                                         
          alternative could be a "tele-nurse".                                                                                  
                                                                                                                                
          Representative Croft asked if  that was how the positions had                                                         
          been  reduced.   Mr. Peeples  stated it  was, however,  noted                                                         
          that  it  is very  complex  issue.   There  must be  a  chief                                                         
          medical staff doctor on duty at all times.                                                                            
                                                                                                                                
          Representative  Croft stressed that the Department  needs the                                                         
          funding  to fund the service.   He stressed that health  care                                                         
          costs are  increasing.  Co-Chair Mulder interjected  that the                                                         
          Subcommittee  addressed if  there  were other  ways that  the                                                         
          Department could address effective health care.                                                                       
                                                                                                                                
          Representative  Davies explained that there is  a fundamental                                                         
          difference  between  the  inmate   population  and  us.    He                                                         
          emphasized  that there needs  to be a plan  in place to  deal                                                         
          with  emergencies.   The concern  is that there  are over  80                                                         
          nurses  on staff and  salaries that  are below the  standard.                                                         
          He  stressed that is why there  is an increasing shortage  of                                                         
          nurses.                                                                                                               
                                                                                                                                
          Co-Chair   Mulder  reiterated   that   the  Subcommittee   is                                                         
          attempting to address these concerns.                                                                                 
                                                                                                                                
          Representative  Davies asked  if this  is an  issue that  the                                                         
          Department  has been struggling with.  Mr.  Peeples explained                                                         
          that  there is staff in the  institutions that deal with  the                                                         
          chronically mentally ill.                                                                                             
                                                                                                                                
          Representative  Croft reiterated  the  potential danger  that                                                         
          exists without the proposed funding.                                                                                  
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:      Davies, Moses, Croft                                                                                   
          OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                           
                   Bunde, Williams, Mulder                                                                                      
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          Representative Croft MOVED to AMEND DOC-#10.                                                                          
                                                                                                                                
     ADD:                                                                                                                       
                                                                                                                                
     Department               Department of Corrections                                                                         
     BRU                      Administration and Operations                                                                     
     Component                Anchorage Jail                                                                                    
                                                                                                                                
     FUND SOURCE                   AMOUNT                                                                                   
                                                                                                                                
     General Fund                  $650.5    (DELETE)                                                                         
     General Fund/Pr. Receipts     $230.0                                                                                       
                                                                                                                                
Representative  Croft asked for  Mr. Peeples  to address the                                                                    
component.                                                                                                                      
                                                                                                                                
Mr. Peeples explained that the general fund program receipts                                                                    
are the  Municipal of  Anchorage payments  through the State                                                                    
for  operating  the  Anchorage  Jail.    In  the  Governor's                                                                    
request,  they came in  with a  different designation.   Co-                                                                    
Chair  Mulder  stated that  they  came  into  the Governor's                                                                    
budget as Statutory Designated Program Receipts (SDPR).   He                                                                    
noted that would not qualify as statutory language.                                                                             
                                                                                                                                
Representative  Croft  clarified  that  money  should  go to                                                                    
Department of Corrections.   Co-Chair Mulder stated that the                                                                    
money would go into the general fund.                                                                                           
                                                                                                                                
Representative Croft asked if $650 thousand dollars would be                                                                    
the correct amount  of money needed by  the Department.  Mr.                                                                    
Peeples  advised  that  the  reduction  from the  Governor's                                                                    
request was  $880 thousand  dollars to bring  open the jail.                                                                    
The Department based it budget plan on that amount.                                                                             
                                                                                                                                
Representative Croft noted  that he would delete the general                                                                    
fund portion of the  request.  He MOVED to ADOPT the amended                                                                    
DOC-#10.    Co-Chair Mulder  OBJECTED.    He  reiterated the                                                                    
intent was to take the conservative approach.                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Croft  MOVED  to  ADOPT  DOC-#11.   Co-Chair                                                                  
Mulder OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department               Department of Corrections                                                                         
     BRU                      Administration & Operations                                                                       
     Component                6th Avenue Correctional Center                                                                    
                                                                                                                                
               FUND SOURCE                    AMOUNT                                                                        
               General Fund                   $670.0                                                                            
                                                                                                                                
          Representative   Croft  explained   that  the  Sixth   Avenue                                                         
          Correctional  Center would  require  $670.0 thousand  general                                                         
          fund dollars to enable it to  operate fully in the final year                                                         
          of operations as a state-operated  correctional center.  When                                                         
          the  final   construction  on  the  new  Anchorage   Jail  is                                                         
          completed,  all Sixth  Avenue  operations (staff,  prisoners,                                                         
          and operating funds) will be  transferred to the new facility                                                         
          to  enable full  operations of  that facility.   Without  the                                                         
          $670.0 general fund dollars,  the new Anchorage Jail facility                                                         
          will be short funded and unable to cover operational needs.                                                           
                                                                                                                                
          Mr.  Peeples stated that bringing  up the new Anchorage  jail                                                         
          includes three budget components.                                                                                     
             ·    Out-of-state;                                                                                                 
             ·    The Sixth Avenue site; and                                                                                    
             ·    The new Anchorage Jail.                                                                                       
                                                                                                                                
          The   new  jail  replaces  the   Sixth  Avenue  jail.     The                                                         
          Department's   budget  was   predicated  on  recruiting   and                                                         
          training staff.                                                                                                       
                                                                                                                                
          TAPE HFC 01 - 45, Side B                                                                                            
                                                                                                                                
          Mr. Peeples explained that the  new jail would be a pre-trial                                                         
          facility.    HB  53 mandate  was  that the  new  jail  budget                                                         
          financing  would  be $6  million  dollars plus  the  existing                                                         
          Sixth  Avenue existing  budget. He advised  that without  the                                                         
          proposed  component, the operating  budget for FY02 would  be                                                         
          incomplete to meet the time frames.                                                                                   
                                                                                                                                
          Co-Chair  Mulder interjected that bringing the  new Anchorage                                                         
          Jail on  line would not be increasing the number  of inmates.                                                         
          He believed that it should be  more operational efficiencies.                                                         
          Representative  Croft  countered  that  the  transition  will                                                         
          cost.                                                                                                                 
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:      Davies, Moses, Croft                                                                                   
          OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                           
                   Bunde, Williams, Mulder                                                                                      
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          Representative Davies MOVED  to AMEND DOC-#12. Representative                                                         
          J.  Davies MOVED  to  ADOPT the  amended DOC-#12.    Co-Chair                                                         
          Mulder OBJECTED.                                                                                                      
                                                                                                                                
               ADD:                                                                                                             
                                                                                                                                
     Department               Department of Corrections                                                                         
     BRU                      Administration and Operations                                                                     
     Component                Community Jails                                                                                   
                                                                                                                                
     FUND SOURCE                   AMOUNT                                                                                   
     General Fund                  $200.0                                                                                       
                                                                                                                                
Co-Chair Mulder asked if  felon's funds could be used in the                                                                    
proposed manner.                                                                                                                
                                                                                                                                
ANNALEE  MCCONNELL,   DIRECTOR,  OFFICE  OF  MANAGEMENT  AND                                                                    
BUDGET, OFFICE OF THE GOVERNOR, commented that they could be                                                                    
used   for    inmate   related    programs   distinct   from                                                                    
incarceration.                                                                                                                  
                                                                                                                                
Representative  Davies noted  that the contract  amounts had                                                                    
been established  in 1996 and have not  changed in six years                                                                    
while the cost of living has continued to increase.                                                                             
                                                                                                                                
Co-Chair Mulder explained  that this year he had "backed up"                                                                    
and currently  the Department  contracts nearly  $84 dollars                                                                    
per day.  He noted  that Dillingham is running at about 135%                                                                    
capacity, Kotzebue is about 110% capacity.  He realized that                                                                    
there is  prison inmate overcrowding.   He believed that the                                                                    
$200  thousand  dollars allocated  in  an  earlier amendment                                                                    
would help to address that concern.                                                                                             
                                                                                                                                
Representative Davies voiced his concern in loosing the beds                                                                    
if the component is  not adequately funded.  Co-Chair Mulder                                                                    
explained that the reality is less than 50% occupancy at $84                                                                    
dollars per day.                                                                                                                
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Lancaster, Whitaker, Bunde,                                                                      
               Williams, Mulder                                                                                                 
                                                                                                                                
Representative Hudson was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Moses WITHDREW DOC-13.                                                                                           
                                                                                                                                
Representative  Croft  MOVED  to  ADOPT  DOC-#14.   Co-Chair                                                                    
Mulder OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
                                                                                                                                
     Department               Department of Corrections                                                                         
     BRU                      Administration and Operations                                                                     
     Component                Office of the Commissioner                                                                        
                                                                                                                                
     FUND SOURCE                   AMOUNT                                                                                   
               General Funds                  $205.6                                                                            
                                                                                                                                
          Representative  Croft explained that the funds  would support                                                         
          a   Strategic   Planner   and  Special   Assistant   to   the                                                         
          Commissioner.  The Strategic  Planner position is responsible                                                         
          for  supervising   several  critical  public  policy   issues                                                         
          including,  the implementation  of HB 214  which was  enacted                                                         
          into law last year (the Prisoner Litigation Reform Act).                                                              
                                                                                                                                
          He   continued,   the  legislation   and   the   Department's                                                         
          commitment  to compliance with  court mandates in the  Cleary                                                         
          suit,   make  the   position  essential   to  continue   with                                                         
          Department  efforts  to  implement  PLRA  and  prevent  court                                                         
          oversight  of institutional  activities.   In that role,  the                                                         
          position was  the principal writer of the  Department's Long-                                                         
          Range  Plan  and  the  person  tasked  with  coordination  of                                                         
          American Correctional Association  (ACA) accreditation of the                                                         
          institutions  in order  to mitigate  against future  lawsuits                                                         
          such as Cleary.                                                                                                       
                                                                                                                                
          Representative   Croft  noted  that  the  Special   Assistant                                                         
          position is critical to the  Office of the Commissioner.  The                                                         
          position  is  tasked  with many  special  projects  including                                                         
          policy and  procedures, freedom of information  act, subpoena                                                         
          for  records and  legal actions,  human resource  complaints,                                                         
          media   relations,   public   contacts   and   responses   to                                                         
          legislative   inquiries.      Without  the   positions,   the                                                         
          Department  will  not  have   adequate  management  staff  to                                                         
          implement   PLRA  and   ACA  standards   and  prevent   court                                                         
          oversight.                                                                                                            
                                                                                                                                
          Co-Chair  Mulder  replied  that   the  Subcommittee  had  not                                                         
          recommended the strategic planner  position.  The funding for                                                         
          the  special  assistant  was  transferred  to  Mental  Health                                                         
          function.   Representative Croft pointed out  the substantial                                                         
          decrease  to  that component.    He  noted that  without  the                                                         
          amendment,  there would be a  30% reduction to the Office  of                                                         
          the Commissioner.                                                                                                     
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:      Davies, Moses, Croft                                                                                   
          OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                           
                   Bunde, Williams, Mulder                                                                                      
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          DEPARTMENT OF LAW                                                                                                   
                                                                                                                                
          Jim Whitaker MOVED to ADOPT LAW-1.                                                                                    
                                                                                                                                
               ADD:                                                                                                             
                                                                                                                                
         Department                Department of Law                                                                            
     BRU                      Criminal Division (33)                                                                            
     Component                Third    Judicial    District:                                                                    
                              Anchorage (2261)                                                                                  
                                                                                                                                
     FUND SOURCE                        AMOUNT                                                                              
     1007 I/A Receipts                  $200.0                                                                                  
                                                                                                                                
Representative Whitaker  explained that  the amendment would                                                                    
enable the Division to  receive a portion of federal funding                                                                    
to  support  the joint  effort  between  the  Departments of                                                                    
Public Safety and Law in an effort to reduce alcohol related                                                                    
crime  through aggressive  investigation and  prosecution of                                                                    
bootlegging  offenses.   The  funding will  provide  for one                                                                    
additional  prosecutor   and  related  costs  in  Anchorage.                                                                    
Representative  Whitaker   noted  that   the  House  Finance                                                                    
Subcommittee on the Department of Public Safety had approved                                                                    
the  Public Safety  portion of  this federal  funding within                                                                    
their budget.                                                                                                                   
                                                                                                                                
There being NO OBJECTION, LAW-1 was adopted.                                                                                    
                                                                                                                                
Representative Jim Whitaker MOVED to ADOPT LAW-2.                                                                               
                                                                                                                                
     ADD:                                                                                                                       
                                                                                                                                
     Department               Department of Law                                                                                 
     BRU                      Criminal Division (33)                                                                            
     Component                Fourth Judicial District                                                                          
                                                                                                                                
     FUND SOURCE                        AMOUNT                                                                              
     1007 I/A Receipts                  $300.0                                                                                  
                                                                                                                                
Representative Whitaker  explained that  the amendment would                                                                    
enable the Division to  receive a portion of federal funding                                                                    
to  support  the joint  effort  between  the  Departments of                                                                    
Public Safety and Law in an effort to reduce alcohol related                                                                    
crime  through aggressive  investigation and  prosecution of                                                                    
bootlegging offenses.   It  would provide  for an additional                                                                    
prosecutor,   paralegal   and  related   costs   in  Bethel.                                                                    
Representative  Whitaker   added  that   the  House  Finance                                                                    
Subcommittee on the Department of Public Safety approved the                                                                    
Public Safety  portion of this  federal funding within their                                                                    
budget.                                                                                                                         
                                                                                                                                
There being NO OBJECTION, LAW-#2 was adopted.                                                                                   
                                                                                                                                
DEPARTMENT OF NATURAL RESOURCES                                                                                               
                                                                                                                                
Representative Hudson MOVED to ADOPT DNR-1.                                                                                     
                                                                                                                                
     ADD:                                                                                                                       
                                                                                                                                
     Agency              Department of Natural Resources                                                                        
     BRU                 Oil and Gas Development                                                                                
         Component           Oil and Gas Development                                                                            
                                                                                                                                
               FUND SOURCE                    AMOUNT                                                                        
               General Fund                   $425.0                                                                            
                                                                                                                                
          Representative  Hudson  provided  information  regarding  the                                                         
          amendment.   He  noted that  the Division  of Oil  & Gas  had                                                         
          requested  an amendment  increment  of $425,000  to the  FY02                                                         
          Operating Budget;  in order to fund salary increases  for key                                                         
          positions  in the exempt service.   Funding of the  increment                                                         
          would  allow   the  Division's  professional,  oil   and  gas                                                         
          salaries  to   be  competitive  with  the  salaries   of  its                                                         
          counterparts in the federal government.                                                                               
                                                                                                                                
          The  Division needs  to retain these  experts because  subtle                                                         
          changes  in interpretation of  geologic and engineering  data                                                         
          has the effect of changing the  State's royalty revenues by f                                                         
          millions of dollars per oil  field.  Retaining and recruiting                                                         
          people  with  the  necessary   skills  and  experience  could                                                         
          greatly  affect  the return  to the  permanent  fund and  the                                                         
          general fund.                                                                                                         
                                                                                                                                
          Representative Davies voiced support of the amendment.                                                                
                                                                                                                                
          There being NO OBJECTION, DNR-#1 was adopted.                                                                         
                                                                                                                                
                                                                                                                                
          Representative  Davies MOVED  to ADOPT DNR-#2.   Representative                                                       
          Hudson OBJECTED.                                                                                                      
                                                                                                                                
                ADD:                                                                                                          
                                                                                                                                
                Department         Department of Natural Resources                                                              
                BRU                Statewide Fire Suppression Program                                                           
                Component          Fire Suppression                                                                             
                                                                                                                                
                FUND SOURCE                   AMOUNT                                                                        
                General Fund                  $350.0                                                                            
                                                                                                                                
                                                                                                                                
          Representative  Davies stated that not  funding the incremental                                                       
          request would have  negative impacts on safe and cost effective                                                       
          suppression  of wildland  fires  in Alaska.   The  increment is                                                       
          needed  to supplement the  Division's current  staff of initial                                                       
          attack firefighters  with a trained, qualified and mobile cadre                                                       
          of firefighters.   The Division does not have adequate staffing                                                       
          in  its forest technician  series to meet  their responsibility                                                       
          of  suppressing wildland fires in  the wildland-urban interface                                                       
          areas  of the State.   During periods of  normal fire activity,                                                       
          the  Division   currently  relies  on  inexperienced  emergency                                                       
          firefighters  (EFF)  to  routinely  staff  its  initial  attack                                                       
          engines  and helicopters.   The EFF's  are not  as well-trained                                                       
          and experienced  as forest technicians because they can only be                                                       
          hired  when there  are fires to  fight.   They do not  have the                                                       
opportunity  to   receive  the  same  level  of   training  and                                                                 
experience as forest technicians.                                                                                               
                                                                                                                                
Trained  and highly  skilled  firefighters have  a much  better                                                                 
chance  of successfully  and  safely  carrying  out an  initial                                                                 
attack on wildland fires and  suppressing them at minimal acres                                                                 
burned and minimal cost.  A  typical wildland fire in the urban                                                                 
interface can cost  anywhere from $300 to $5000  dollars if the                                                                 
initial attack  is successful.   When  a wildland  fire escapes                                                                 
initial attack and becomes an  extended attack or project fire,                                                                 
the costs to suppress them increase  exponentially.  The 2,777-                                                                 
acre  Clear  Fire  (located near  Nenana)  that  occurred  last                                                                 
summer, cost  $2.6 million to suppress.   Large fires,  such as                                                                 
the Miller's  Reach Fire in 1996,  could easily cost  $500.0 to                                                                 
$1,000.0 dollars per  day and can last two to  three weeks.  He                                                                 
advised that the suppression costs  for the Miller's Reach Fire                                                                 
was $15.0 million.                                                                                                              
                                                                                                                                
Representative J.  Davies noted that wildland fire  fighting is                                                                 
a dangerous  profession and  the use  of minimally  trained and                                                                 
inexperienced firefighters is ill  advised.  Consequently, when                                                                 
there is a shortage of firefighters  and the Division is forced                                                                 
to rely on EFF, the State is  also forced to be less aggressive                                                                 
on initial attack because we will  not compromise the safety of                                                                 
any firefighter  on initial  attack or  any other  related fire                                                                 
suppression operations.   The end  result of this fact  is that                                                                 
there  could  be more  escaped  fires  in the  urban  interface                                                                 
areas.  An  escaped  fire  can  cost  millions  of  dollars  to                                                                 
suppress  and result in  significant potential  loss  of public                                                                 
and private property.                                                                                                           
                                                                                                                                
The population  in Alaska  continues to  move into  and develop                                                                 
the  wildland-urban interface  areas of  the State.  Currently,                                                                 
the MatSu  Valley is the fastest  growing area of Alaska  and a                                                                 
great deal  of that  valley has the  potential for  more costly                                                                 
urban interface  fires like  the Miller's  Reach Fire  in 1996,                                                                 
and  Helmaur Road  Fire in  1999.  An  added  fire risk is  the                                                                 
catastrophic  spruce  beetle  infestation  that  has  decimated                                                                 
timber  stands in  several  areas in  the  State including  the                                                                 
Anchorage Bowl  and the Kenai  Peninsula.  These  spruce beetle                                                                 
killed stands of timber overlap  with the urban interface areas                                                                 
of  the  State,   thereby,  increasing  the  potential   for  a                                                                 
disastrous wildland fire should it escape initial attack.                                                                       
                                                                                                                                
Representative Hudson  commented that the Subcommittee  did not                                                                 
underestimate the power of early  on attacking fires.  He noted                                                                 
that it  had not been well  articulated by the Department.   He                                                                 
agreed  that  the  concept  is   a  component  that  should  be                                                                 
considered at a later date.                                                                                                     
                                                                                                                                
Representative  Lancaster  questioned what  would  be used  for                                                                 
equipment and transportation.   Representative Davies responded                                                                 
that the  Department does have  the equipment they need  but do                                                                 
not have  the staffing.  He  pointed out that this  would be an                                                                 
          increment  used during the fire  season, and would  not be full                                                       
          time positions.                                                                                                       
                                                                                                                                
          In   response  to   Vice-Chair  Bunde,   Representative  Davies                                                       
          explained  that  Bureau  of Land  Management  (BLM)  has twenty                                                       
          times  the staff  that the State  does.   The fact is  that the                                                       
          increment  would train  people to  do rapid attacks  around the                                                       
          State.                                                                                                                
                                                                                                                                
          NICO  BUS, ADMINSTRATIVE SERVICES MANAGER,  DIVISION OF SUPPORT                                                       
          SERVICES,  DEPARTMENT  OF  NATURAL  RESOURCES, voiced  surprise                                                       
          with the comments  of Representative Hudson   He noted that the                                                       
          request  had  been  submitted  since  the  original  Governor's                                                       
          budget.   He urged that the  Committee consider this component,                                                       
          as it  is a life safety issue.  He  noted that the crews do not                                                       
          conflict  with   the  "hot  shot"  crews  and  noted  that  the                                                       
          Department does not have the manpower to implement it.                                                                
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:      Davies, Moses, Croft                                                                                   
          OPPOSED:       Foster, Harris, Hudson, Lancaster, Bunde,                                                              
                         Williams, Mulder                                                                                       
                                                                                                                                
    Representative Whitaker was not present for the vote.                                                                       
                                                                                                                                
          The MOTION FAILED (3-7).                                                                                              
                                                                                                                                
          Representative  Croft MOVED to ADOPT DNR-#3.   Representative                                                         
          Hudson OBJECTED.                                                                                                      
                                                                                                                                
                ADD:                                                                                                          
                                                                                                                                
                Department         Department of Natural Resources                                                              
                BRU                Information/Data Management                                                                  
                Component          Information Resource Management                                                              
                                                                                                                                
               FUND SOURCE                    AMOUNT                                                                        
               General Fund                   $72.5                                                                             
                                                                                                                                
          Representative  Croft explained that the Land  Status Graphic                                                         
          Record system  is used by the public and  government agencies                                                         
          to  access land  status information.    Although land  status                                                         
          records are  available on-line, the access is of  limited use                                                         
          due to a 9-month update backlog.                                                                                      
                                                                                                                                
          He  noted that the Department  receives an average of  15,000                                                         
          land  transactions that  need to  be entered in  to the  Land                                                         
          Status Graphic  Record system.  The existing  average backlog                                                         
          of  9 months is  unacceptable to  both internal and  external                                                         
          users  who need these records  to be current within 30  days.                                                         
          He advised that the projected  FY2002 backlog amounts to over                                                         
          11,000 pending  actions.  Representative Croft noted  that by                                                         
adding  one additional  cartographer,  the  backlog workload                                                                    
could be cut about 25% per year.                                                                                                
                                                                                                                                
The primary users of the graphic land records include:                                                                          
      ·    Mining industry for managing mineral property                                                                        
        rights;                                                                                                                 
   ·    Oil and gas industry to assure public notification                                                                      
        of leases, right-of-ways, water rights, and material                                                                    
        sales;                                                                                                                  
   ·    Forest products industry for state timber sales;                                                                        
   ·    Alaskans looking for land to purchase or lease;                                                                         
  ·    Agricultural   industry   for   locating   specially                                                                     
        designated agriculture lands and agriculture land                                                                       
        sales; and                                                                                                              
   ·    All resource managers, especially DNR managers and                                                                      
        staff, who rely on plats for day-to-day permitting                                                                      
        decision support and documentation.                                                                                     
                                                                                                                                
Each  of  these important  resource  based  user communities                                                                    
suffer when  dependable land records  are not available from                                                                    
the State.                                                                                                                      
                                                                                                                                
Representative  Croft  stated that  operating  staff  in the                                                                    
Status Graphic  Unit was steadily  reduced from 19 positions                                                                    
in 1990  to 10.2  in FY01.   While automation  has permitted                                                                    
fewer  staff  to  accomplish  more  work,  it  cannot  fully                                                                    
compensate   for  the   staff   reductions.   Although  each                                                                    
cartographer now produces 50% more output than 12 years ago,                                                                    
an additional cartographer  is needed to reduce the backlog.                                                                    
A reduction  in the backlog, resulting  in more current land                                                                    
records,  will   have  a  direct   and  positive  impact  on                                                                    
permitting of economic development activities.                                                                                  
                                                                                                                                
TAPE HFC 01 - 46, Side A                                                                                                      
                                                                                                                                
Representative Croft acknowledged that the request would not                                                                    
solve all  the problems, but  maintained that it  would be a                                                                    
step in the right direction.                                                                                                    
                                                                                                                                
Representative  Hudson  noted that  this  Division  has made                                                                    
significant  strides  in  automating  and  streamlining  the                                                                    
system.  He acknowledged that there is a nine-month backlog,                                                                    
but  explained  that  the  request  was  not  a high  enough                                                                    
priority to be funded above other increments.                                                                                   
                                                                                                                                
Representative Harris questioned if it was a priority of the                                                                    
Alaska  Miner's Association.  Representative Hudson  did not                                                                    
know.                                                                                                                           
                                                                                                                                
Mr. Bus stated that  the project is important in determining                                                                    
mining claims, right of ways, and timber sales. Industry has                                                                    
endorsed initiatives  funded through the federal government.                                                                    
          The request shows the pictorial display. The capital budget                                                           
          would address the land use database system.                                                                           
                                                                                                                                
          Representative Davies pointed out that the department staff                                                           
          uses the data to answer questions by industry. Failure to                                                             
          fund the request could result in delays.                                                                              
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies, Foster                                                                                
          OPPOSED: Bunde, Harris, Hudson, Lancaster, Mulder, Williams                                                           
                                                                                                                                
          Representative Whitaker was absent from the vote.                                                                     
                                                                                                                                
          The MOTION FAILED (4-6).                                                                                              
                                                                                                                                
                                                                                                                                
     Representative Croft MOVED to ADOPT Amendment DNR-4:                                                                       
                                                                                                                                
                ADD                                                                                                             
                                                                                                                                
                Department of Natural Resources                                                                                 
                                                                                                                                
                Parks & Recreation Management                                                                                   
                                                                                                                                
                Parks Management                                                                                                
                                                                                                                                
                Fund Source                   Amount                                                                        
                                                                                                                                
               General Fund                   $160.0                                                                            
                                                                                                                                
               ($100.0) for Wood-Tikchik State Park                                                                             
               America's   largest  state   park,  Wood-Tikchik,   will                                                         
               continue  to be staffed at an embarrassingly  low level.                                                         
               Currently  one staff person manages an area  larger than                                                         
               the  state of Delaware, 1.6  million acres. Park use  in                                                         
               the  past 10 years has  steadily climbed and  additional                                                         
               ranger  staff, assigned to year-round  responsibilities,                                                         
               is desperately needed.  Without this new position, there                                                         
               will continue  to be no routine patrolling in  over half                                                         
               the  park.  This  increment   also  included  funds  for                                                         
               maintenance  of an aircraft  (to be secured through  the                                                         
               Department  of  Public  Safety  at no  cost  to  Parks).                                                         
               Without  an aircraft and a ranger/pilot, the  upper lake                                                         
               systems  will  not  see regular  patrol.  The  increased                                                         
               conflicts  between hunting  guides,  and between  guides                                                         
               and  private hunters will  continue with no  possibility                                                         
               of resolution. Recommendations  from the revision of the                                                         
               park  management plan  to resolve  the hunter  conflicts                                                         
               and  resource impacts  from both  guided and  non-guided                                                         
               park  visitors  cannot be  implemented without  a  field                                                         
               presence.                                                                                                        
                                                                                                                                
               ($60.0) for Park Maintenance                                                                                     
     The general  condition of the state  parks in Alaska is                                                                    
     terrible  and we  are hearing  that statement  from the                                                                    
     public  regularly.   State  Parks  has  identified  $42                                                                    
     million in  deferred maintenance needs  in our 120 park                                                                    
     units. Last year, one  of the outhouses was so rotten a                                                                    
     woman fell through and  a park road was so bad it broke                                                                    
     a motor home axle. While we                                                                                                
     attempt to  keep up  with the worst  situations, we are                                                                    
     now unable  to do so.  All of the  maintenance staff is                                                                    
     seasonal.  This funding  would extend  their seasons so                                                                    
     they can  address more of the  maintenance needs of the                                                                    
     park  system. This  increase in  person months  will be                                                                    
     spread throughout the park system and will compliment a                                                                    
     CIP  request for Park  Emergency Repairs.  Without this                                                                    
     increment, we will simply continue to defer maintenance                                                                    
     needs with  the hope that  those needs involving health                                                                    
     and  safety  don't result  in  a  visitor  injury. This                                                                    
     increment does not  address all of the park maintenance                                                                    
     needs,  but  at  this point,  even  a  small  amount of                                                                    
     additional funding will  be immediately put to good use                                                                    
     on  those problems  that can  cause the most  injury to                                                                    
     park visitors and the most liability to the state.                                                                         
                                                                                                                                
     Search & Rescue needs will continue to increase without                                                                    
     additional  staff   to  make  contact   with  an  ever-                                                                    
     increasing number of non-guided visitors from the Lower                                                                    
     48, as well                                                                                                                
     as  Alaskans  not  experienced  in  wilderness  travel.                                                                    
     Publicity  in national  magazines (Outside  and Alaska)                                                                    
     has  drawn  attention  to  Wood-Tikchik  as  an  easily                                                                    
     accessible  wilderness experience.  Air  taxi operators                                                                    
     rent boats and gear, making travel by those with little                                                                    
     or no wilderness experience easy. Contact with visitors                                                                    
     before  they get  into  trouble with  wildlife, private                                                                    
     property,  or  the  weather  is  the  cheapest  form of                                                                    
     insurance.                                                                                                                 
                                                                                                                                
     Three years  ago, the  native allotment  issue in Wood-                                                                    
     Tikchik  was solved  when  conservation  easements were                                                                    
     offered to the  over 100 park in holders. Virtually all                                                                    
     the allotment holders  took the easement, which allowed                                                                    
     the  Bureau of  Land  Management to  move  forward with                                                                    
     conveying  the land.  Every month,  additional patented                                                                    
     private  land is  being conveyed  and park  staff has a                                                                    
     dual responsibility  regarding these lands. Many people                                                                    
     assume all the  land in the park  is public land. It is                                                                    
     important   for   many  reasons   that   park  visitors                                                                    
     understand that  there are over  100 parcels of private                                                                    
     property averaging 80  acres each. It is also important                                                                    
     to  monitor the conservation  easements  to ensure that                                                                    
     they are  being implemented  properly. This,  in and of                                                                    
     itself, would be a full time job for someone. But it is                                                                    
     just one  of the  many responsibilities  of our current                                                                    
     sole park ranger.                                                                                                          
                                                                                                                                
               Revenue  generation opportunity at the new boat  ramp at                                                         
               Lake Aleknagik will suffer  without regular attention to                                                         
               fee compliance. With only  one ranger, there will be far                                                         
               less time spent at the  boat ramp than if there were two                                                         
               rangers.  The  boat  ramp   is  the  most  heavily  used                                                         
               facility  in the park and  ranger presence is needed  to                                                         
               ensure  smooth  operation of  a  facility that  can  see                                                         
               upwards  of 400 trucks and  trailers on a busy  weekend.                                                         
               With  the  needs of  the boat  ramp taking  the  current                                                         
               ranger's   time  and  attention,  there  will   be  less                                                         
               backcountry patrol.                                                                                              
                                                                                                                                
               There  is currently NO presence  in the park during  the                                                         
               winter  months. Winter  use in  the park  is growing  as                                                         
               snow  machine  use  becomes  more  reliable  and  people                                                         
               discover the ease with  which one can travel on a frozen                                                         
               lake.  Ranger contact with these recreators  before they                                                         
               leave (most  will leave from the boat launch)  to ensure                                                         
               proper  equipment and understanding  of the weather  and                                                         
               terrain  could  prevent most  winter search  and  rescue                                                         
               operations.  Winter activities, such  as dog races,  are                                                         
               starting to occur in the  park and NO staff is available                                                         
               to  administer these programs  and permits. At risk  are                                                         
               park resources.                                                                                                  
                                                                                                                                
               By  legislative  direction,   the  management  of  Wood-                                                         
               Tikchik is by a management  council consisting primarily                                                         
               of  local residents. Without  someone locally  available                                                         
               to keep in touch with these  management council members,                                                         
               it  is difficult to  secure a  quorum for meetings.  For                                                         
               each meeting  held, at least four are  cancelled because                                                         
               of quorum problems. This  is a highly inefficient use of                                                         
               staff  and volunteer time. A year-round staff  person in                                                         
               Dillingham  would  increase  the  participation  by  the                                                         
          council through regular in-person contact.                                                                            
                                                                                                                                
               With  no staff  at the  boat  launch in  the winter,  we                                                         
               expect  vandalism. From  our experience  at other  sites                                                         
               accessible  in the winter, a year-round  ranger presence                                                         
               would greatly deter                                                                                              
               vandalism.                                                                                                       
                                                                                                                                
          Representative Croft argued in support of the amendment. He                                                           
          stressed that it would be a modest step to support the                                                                
          highest priority areas.                                                                                               
                                                                                                                                
          Representative Hudson noted  that the subcommittee focused on                                                         
          economic  development  and the  water permitting  system.  He                                                         
          observed that rangers could  be relocated from smaller parks.                                                         
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies                                                                                        
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,Williams                                                                      
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DNR-5                                                                             
      ADD                                                                                                                       
                                                                                                                                
      Department of Natural Resources                                                                                           
                                                                                                                                
      Information/Data Management                                                                                               
                                                                                                                                
      Interdepartmental Data Processing Chargeback                                                                              
                                                                                                                                
      Fund Source                  Amount                                                                                   
                                                                                                                                
      General Fund                 $57.5                                                                                        
                                                                                                                                
     Technology changes are driving  improvements in government                                                                 
     business practices;  technical expertise is  essential for                                                                 
     finding reliable  solutions to problems identified  by DNR                                                                 
     staff  and  the public.  Conversely,  inadequate  staffing                                                                 
     means  slow response  times to solving  users' network  or                                                                 
     computer issues,  which in  turn cuts worker  productivity                                                                 
     and limits the value of  DNR's services and information to                                                                 
     the  public. This  funding would  add one additional  data                                                                 
     processing technician.                                                                                                     
                                                                                                                                
     This position is  needed to assure an  acceptable level of                                                                 
     computer  support   for  the   Palmer  and   MatSu  staff,                                                                 
     especially during  the high demand fire season.  There are                                                                 
     about 93  network devices in  Palmer alone, about  half of                                                                 
     them are  at the  new Forestry  fire facility,  the others                                                                 
     are  in  the  Recorder's  Office,  State  Parks,  and  the                                                                 
     Division   of   Agriculture.   Also,   the   Division   of                                                                 
     Agriculture's  Plant  Material   Center  is  projected  to                                                                 
     increase  their  staffing  due  to an  influx  of  federal                                                                 
     monies and thus will require more computer support.                                                                        
                                                                                                                                
     This  increment request  only addresses  the demands  that                                                                 
     are  critical  for maintaining  DNR's  widely  distributed                                                                 
     computing and  data communications network. DNR  staff now                                                                 
     support an  average of 192  network devices  per technical                                                                 
     person. An acceptable  industry average is  75 devices per                                                                 
     technical  person. DNR  network  staff has  2.5 times  the                                                                 
     industry average  workload. Personal computers  now have a                                                                 
     central role  in our office environments,  949 devices are                                                                 
     supported across the department;  the Computer Information                                                                 
     Center staff covers 766  of these. One additional position                                                                 
     will drop  the ratio  to only  twice the industry  average                                                                 
     (vs. the current 2.5 times the industry average).                                                                          
                                                                                                                                
     Without the  requested position, the Anchorage  staff will                                                                 
     have to continue  to support the MatSu/Palmer  areas. This                                                                 
     doesn't provide  responsive action to the timing  needs of                                                                 
               the Palmer Offices and is an inefficient and cumbersome                                                          
               use of the Anchorage staff.                                                                                      
                                                                                                                                
          Representative  Croft  spoke in  support of  the  amendment. He                                                       
          suggested  that  statutory  designated  program receipts  would                                                       
          allow the increments  to be funded and pointed out that the cap                                                       
          is driving the reduction.                                                                                             
                                                                                                                                
          Representative  Hudson acknowledged  that it  would be  good to                                                       
          have  a permanent  full  time data  processing  technician, but                                                       
          emphasized  that  the budget  was reviewed  with  priorities in                                                       
          mind.  He stated that he  would support the  request if further                                                       
          funding were available.                                                                                               
                                                                                                                                
          Representative  Davies spoke  in support  of the  amendment. He                                                       
          maintained that the level of support was not sufficient.                                                              
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies                                                                                        
                                                                                                                                
     OPPOSED: Harris, Hudson, Lancaster, Mulder, Williams                                                                       
                                                                                                                                
          Representatives  Foster, Whitaker  and  Bunde were  absent from                                                       
          the vote.                                                                                                             
                                                                                                                                
          The MOTION FAILED (3-5).                                                                                              
                                                                                                                                
    Representative Davies MOVED to ADOPT Amendment DNR-6:                                                                       
                                                                                                                                
                ADD                                                                                                             
                                                                                                                                
                Department of Natural Resources                                                                                 
                                                                                                                                
                Minerals, Land & Water Development                                                                              
                                                                                                                                
                Claims, Permits & Leases                                                                                        
                                                                                                                                
                Fund Source                   Amount                                                                        
                                                                                                                                
               General Fund                   $160.0                                                                            
                                                                                                                                
               Results  of recent geophysical exploration indicate  the                                                         
               potential  for a significant deposit of minerals  in the                                                         
               Denali Block  area. As the public became aware  that DNR                                                         
               recently  requested  the   entitlement  of  the  eastern                                                         
               portion  of  the  Denali  Block  area  to  be  on  BLM's                                                         
               conveyance  priority  list,   the  mining  industry  has                                                         
               communicated  considerable  interest  in  assuring  that                                                         
               this  conveyance  occurs.  That  is,  the  industry  has                                                         
               reinforced  the  importance  of  the  area  to  upcoming                                                         
               exploration and expenditures.                                                                                    
                                                                                                                                
          Representative Davies spoke  in support of the amendment. The                                                         
          area  has   great  archaeological  importance  and   is  used                                                         
extensively for recreation and subsistence. There is also a                                                                     
significant mineral potential. The mining industry does not                                                                     
want to have to access the area under federal rules.                                                                            
                                                                                                                                
Representative  Hudson   explained  that   the  request  was                                                                    
difficult for the Subcommittee. He acknowledged the need and                                                                    
emphasized that there is  an issue of timing. The request is                                                                    
not a necessity for the next fiscal year.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies                                                                                                         
OPPOSED: Bunde,    Foster,    Harris,   Hudson,   Lancaster,                                                                    
          Whitaker, Mulder, William                                                                                             
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative Davies WITHDREW Amendment DNR-7                                                                                  
                                                                                                                                
      ADD                                                                                                                       
                                                                                                                                
      Department of Natural Resources                                                                                           
                                                                                                                                
      Oil and Gas Development                                                                                                   
                                                                                                                                
      Fund Source                  Amount                                                                                   
                                                                                                                                
      General Fund                 425.0                                                                                        
                                                                                                                                
Department of Administration                                                                                                  
                                                                                                                                
Representative Ken Lancaster MOVED to ADOPT Amendment ADMIN-                                                                    
1:                                                                                                                              
                                                                                                                                
     DELETE                                                                                                                     
     BRU:      Alaska Longevity Programs Management                                                                             
     Component:Pioneers Homes                                                                                                   
     Fund Source                   Amount                                                                                       
     General Funds                 $ 140.5                                                                                      
                                                                                                                                
     ADD                                                                                                                        
     BRU:      Senior Services                                                                                                  
     Component:Senior Employment Services                                                                                       
     Fund Source                   Amount                                                                                       
     General Funds                 $ 140.5                                                                                      
                                                                                                                                
     Purpose:                                                                                                                   
     The reduction  will correct a  technical error; funding                                                                    
     is for nursing  increases addressed through fiscal note                                                                    
     in  legislation.  The increment  will  fund  144 senior                                                                    
     employment   positions    statewide   to   cover   cost                                                                    
     differential of their existing pay levels of low-income                                                                    
               seniors employed through  community agencies and the new                                                         
               federally imposed hourly wage limit. ($6.50)                                                                     
                                                                                                                                
          Representative Lancaster There  being NO OBJECTION, it was so                                                         
          ordered.                                                                                                              
                                                                                                                                
          Representative Lancaster MOVED to ADOPT Amendment ADMIN-2                                                             
                                                                                                                                
               Public Communications Services                                                                                   
               Satellite Infrastructure                                                                                         
                                                                                                                                
               $750 thousand dollars General fund                                                                               
               $550 thousand dollars SDPR                                                                                       
                                                                                                                                
               This  will  allow  the department  to  secure  Satellite                                                         
               services  and  require   the  department  to  develop  a                                                         
               revenue  source for  the portion of  the satellite  used                                                         
               for ARCS. The contract  should be limited to a base of 2                                                         
               years   with  renewal  options.  The   telecommunication                                                         
               availability  is rapidly changing, as is  equipment. The                                                         
               state   should  not  lock  itself  into   any  long-term                                                         
               contracts without taking  advantage of new opportunities                                                         
               that  will become  available in Alaska  within the  next                                                         
               two years.                                                                                                       
                                                                                                                                
          Co-Chair Mulder  explained that the amendment relates  to the                                                         
          transponder.  The issue is the increased ATT  contract costs.                                                         
          There   are  four   channels  on   the  transponder:   public                                                         
          television,  Gavel to Gavel,  educational television and  The                                                         
          Alaska   Rural  Communications  Service.  Six  public   radio                                                         
          stations  and  the  Emergency Broadcasting  System  are  also                                                         
          beamed.  The  request  would   look  at  the  possibility  of                                                         
          collecting  receipts from the  commercial entities  utilizing                                                         
          the   services.  The  commercial   stations  have  not   been                                                         
          contacted.                                                                                                            
                                                                                                                                
          Representative Davies pointed  out that the amendment is $300                                                         
          thousand  dollars less  than the original  request. He  added                                                         
          that  the  statutory  designated  program  receipts  are  not                                                         
          certain.                                                                                                              
                                                                                                                                
          Co-Chair  Mulder  clarified that  the  actual amount  of  the                                                         
          contract is  $300 thousand dollars less than the  request. He                                                         
          maintained that  it was not his intent to interfere  with the                                                         
          contract, but to get the accurate amount.                                                                             
                                                                                                                                
          Representative  Davies  recognized  the strategy  of  forcing                                                         
          efficiencies  but questioned  the  recourse if  it cannot  be                                                         
          negotiated  with  the appropriated  amount.  Co-Chair  Mulder                                                         
          responded  that  that  some  of  the  transmission  could  be                                                         
          blackened.                                                                                                            
                                                                                                                                
          Representative  Davies expressed support for the  attempt but                                                         
          questioned  what would be jeopardized if commercial  entities                                                         
were not  willing to come  up with the funding.  He asked if                                                                    
there  would be  an  ability  to go  before  the Legislative                                                                    
Budget and Audit Committee for additional funds.                                                                                
                                                                                                                                
DAN SPENCER, DIRECTOR,  DIVISION OF ADMINISTRATIVE SERVICES,                                                                    
DEPARTMENT  OF ADMINISTRATION  clarified  that  the original                                                                    
request  was  $1.6 million  dollars  in  general  funds. The                                                                    
tariff would  not be  filled until June.  There is currently                                                                    
$900  thousand dollars.  The  amendment would  provide eight                                                                    
months of  service if  the contract were  negotiated at $1.6                                                                    
million  dollars.  He   observed  that  there  would  be  an                                                                    
opportunity   to   come  before   the   legislature   for  a                                                                    
supplemental before  the lights are  turned off. He observed                                                                    
that previous  discussions to collect  program receipts have                                                                    
not been  fruitful. He  noted that  the vendor  could not be                                                                    
forced. He stressed that the service is essential.                                                                              
                                                                                                                                
Co-Chair Mulder  noted that the current  amount paid to AT&T                                                                    
is  $800 thousand  dollars.  The  new proposal  is  for $2.1                                                                    
million dollars.                                                                                                                
                                                                                                                                
Representative Hudson noted that a shortfall would not occur                                                                    
before February 2002.                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
RECESSED                                                                                                                      
                                                                                                                                
The Committee recessed at 4:03 p.m.                                                                                             
                                                                                                                                
RECONVENED                                                                                                                    
                                                                                                                                
The Committee reconvened 5:45 p.m.                                                                                              
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment ADMIN-3:                                                                         
                                                                                                                                
     Leases                                                                                                                     
     Leases                                                                                                                     
     Add:      1,900.0 GF                                                                                                       
                                                                                                                                
     Explanation:                                                                                                               
     This  would  provide  full  funding  of FY'02  request.                                                                    
     Leases were short funded last year and there is a FY'01                                                                    
     supplemental request of  1,600.0 GF.  Payment will have                                                                    
     to be  made now  or later  through supplemental process                                                                    
     next year.                                                                                                                 
                                                                                                                                
Representative Davies observed  that this component has been                                                                    
under funded  for the  past 11 years.  The FY01 supplemental                                                                    
was $1.6 million dollars. He  questioned   the   wisdom   of                                                                    
purposely under funding this component.                                                                                         
                                                                                                                                
Co-Chair Mulder acknowledged  that the leasing appropriation                                                                    
has been conservative as a means to encourage the department                                                                    
          to achieve  some efficiency. Leasing costs have  been reduced                                                         
          over  the  past 15  years. He  referred  to problems  in  the                                                         
          Division  of  Motor  Vehicle's lease  space.  The  department                                                         
          needs to pursue a good deal for the state.                                                                            
                                                                                                                                
          TAPE HFC 01 - 46, Side B                                                                                            
                                                                                                                                
          Representative  Davies  acknowledged  the concern,  but  felt                                                         
          that  the Division  of  Motor Vehicles'  lease  space was  an                                                         
          extreme  example. He suggested that  steps be taken to  cover                                                         
          such  instances  through  the Legislative  Budget  and  Audit                                                         
          Committee.                                                                                                            
                                                                                                                                
          Representative  Lancaster clarified  that his allocation  did                                                         
          not allow the Subcommittee to fund the component.                                                                     
                                                                                                                                
          Representative  Croft pointed  out  that under-funding  would                                                         
          not change  where the money comes from it would only  move it                                                         
          to  the supplemental. It  undermines the public's  confidence                                                         
          that the budget is being correctly represented.                                                                       
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies                                                                                        
          OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                         
                    Whitaker, Mulder, Williams                                                                                  
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          Representative Croft MOVED to ADOPT Amendment ADMIN-4:                                                                
                                                                                                                                
               Leases                                                                                                           
               Lease Administration                                                                                             
               Add:      13.5 GF                                                                                                
                         55.7 IA Receipts                                                                                       
                                                                                                                                
          Representative  Croft  explained  that  the  amendment  would                                                         
          restore   the   subcommittee   reduction   by   funding   one                                                         
          contracting  officer position. He stressed that  the position                                                         
          is needed to manage the leases.                                                                                       
                                                                                                                                
          Representative  Lancaster emphasized that the functions  have                                                         
          been  adequately handled for  the past  12 years without  the                                                         
          additional positions.                                                                                                 
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies                                                                                        
          OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                         
                    Whitaker, Mulder, Williams                                                                                  
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
Representative Davies WITHDREW Amendment ADMIN-5:                                                                               
                                                                                                                                
     Public Communications Services                                                                                             
     Satellite Infrastructure                                                                                                   
     Add: 1,600.0 GF                                                                                                            
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment ADMIN-6:                                                                          
                                                                                                                                
     Senior Services                                                                                                            
     Protection, Community Services & Administration                                                                            
     Add: 447.3 GF                                                                                                              
                                                                                                                                
Representative  Croft  explained  that  the  amendment would                                                                    
fully fund  the general relief  grants for vulnerable adults                                                                    
at the  FY'02 requested level.  The cost of  this program is                                                                    
entirely dependent on  caseload. A supplemental request will                                                                    
be made next year if funding falls short of caseload growth.                                                                    
There is a FY'01  supplemental request of 150.0. He stressed                                                                    
that it supports the poor.                                                                                                      
                                                                                                                                
Representative Lancaster  noted that the  Subcommittee had a                                                                    
lot of debate on the item. The Subcommittee did not have the                                                                    
allocation to cover the cost.                                                                                                   
                                                                                                                                
Representative  Davies  maintained that  the  cost  would be                                                                    
driven to the supplemental due to an arbitrary cap.                                                                             
                                                                                                                                
Discussion   ensued  regarding   the   Governor's  statutory                                                                    
amendment deadline.                                                                                                             
                                                                                                                                
Representative Davies maintained that the component would be                                                                    
under-funded if  the caseload  were similar  to the previous                                                                    
year. He  maintained that the component  should be funded at                                                                    
the expected level.                                                                                                             
                                                                                                                                
Representative  Croft pointed  out  that the  item  would be                                                                    
funded as a supplemental. He WITHDREW Amendment DOA-6.                                                                          
                                                                                                                                
Co-Chair  Mulder  noted that  the  Committee  had  never not                                                                    
funded senior services.                                                                                                         
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment ADMIN-7:                                                                         
                                                                                                                                
     Legal and Advocacy Services                                                                                                
     Office of Public Advocacy                                                                                                  
     Add:      600.0 GF                                                                                                         
                                                                                                                                
     Explanation:                                                                                                               
     This  increment  will  fully  fund  OPA  at  the  FY'02                                                                    
     requested  level.  This  request  is  based  on overall                                                                    
     caseload  projections,  which  indicate  this shortfall                                                                    
     amount for FY'02. OPA provides legal representation for                                                                    
     vulnerable  Alaskans  and  also  serves  as  guardians.                                                                    
     Clients   include   abused   and   neglected  children,                                                                    
               incapacitated adults and indigent criminal defendants                                                            
               when the Public Defender Agency has a conflict of                                                                
               interest.                                                                                                        
                                                                                                                                
          Representative  Davies  pointed  out  that  the  Subcommittee                                                         
          funded  the  component  below  the current  year's  level  of                                                         
          funding  and  concluded that  there  would be  a need  for  a                                                         
          supplemental  appropriation. He added  that the courts  drive                                                         
          the caseload.  He observed that 60 percent of the  money goes                                                         
          to private attorneys.                                                                                                 
                                                                                                                                
          Representative  Lancaster noted that  the Subcommittee had  a                                                         
          lot of  debate on the item and that the  department presented                                                         
          a  strong  case,  but  the  Subcommittee  did  not  have  the                                                         
          allocation to cover the cost.                                                                                         
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies                                                                                        
          OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                         
                    Whitaker, Mulder, Williams                                                                                  
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
    Representative Croft MOVED to ADOPT Amendment ADMIN-8                                                                       
                                                                                                                                
               Legal and Advocacy Services                                                                                      
               Office of Public Advocacy                                                                                        
               Add:      75.0 GF/MH                                                                                             
                                                                                                                                
          Representative  Croft explained that  the request would  fund                                                         
          one  of  the four  guardianship  positions requested  by  the                                                         
          Alaska  Mental Health  Trust Authority in  the mental  health                                                         
          budget.  He  stressed  that  children  and  other  vulnerable                                                         
          persons receive the services.                                                                                         
                                                                                                                                
          Representative  Lancaster agreed  that the  need is  growing,                                                         
          but explained  that there was not a solid funding  source for                                                         
          the appropriation.                                                                                                    
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Moses, Croft, Davies                                                                                        
          OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                         
                    Whitaker, Mulder, Williams                                                                                  
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          Representative Croft MOVED to ADOPT Amendment ADMIN-9:                                                                
                                                                                                                                
               Legal and Advocacy Services                                                                                      
               Public Defender                                                                                                  
               Add: 825.0                                                                                                       
                                                                                                                                
     Explanation:                                                                                                               
     This  increment   funds  items  previously  reduced  or                                                                    
     eliminated  to meet  shortfalls and  items specifically                                                                    
     noted  in  the 1998  Legislative  Audit  review  of the                                                                    
     Public Defender, including:                                                                                                
                                                                                                                                
     474.18 paralegals                                                                                                          
     26.7 Kodiak investigator                                                                                                   
     183.2 Travel for rural court locations                                                                                     
     100.0 additional computer legal research                                                                                   
     40.0 implement case management system                                                                                      
                                                                                                                                
Representative Croft argued  in support of the amendment. He                                                                    
observed that  a legislative audit  found that the component                                                                    
needed  additional support.  He  maintained that  the Public                                                                    
Defender  is  understaffed  and  does  not  have  sufficient                                                                    
resources.  The   amendment  would   appropriate  the  level                                                                    
recommended  by the Legislative  Budget and  Audit Committee                                                                    
audit. Eight  paralegals would be  used as a  cheaper way to                                                                    
leverage attorney resources.                                                                                                    
                                                                                                                                
Co-Chair Mulder  questioned if  the average  caseload of the                                                                    
prosecutor   was   greater   than   the   public   defender.                                                                    
Representative  Croft did not  know the  average caseload of                                                                    
the prosecutor. Co-Chair  Mulder thought that the prosecutor                                                                    
caseload was greater. Representative Davies pointed out that                                                                    
prosecutors have greater resources available.                                                                                   
                                                                                                                                
Representative Lancaster  acknowledged that  the caseload is                                                                    
great, but  the Subcommittee did not  have the allocation to                                                                    
cover the cost.                                                                                                                 
                                                                                                                                
Representative   Croft  observed   that  the   caseload  has                                                                    
increased 47 percent since 1988.                                                                                                
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Croft, Davies, Bunde                                                                                           
OPPOSED:  Foster,   Harris,  Hudson,   Lancaster,  Whitaker,                                                                    
          Mulder, Williams                                                                                                      
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment ADMIN-10                                                                          
     Division of Motor Vehicles                                                                                                 
     Add: 170.0 CF                                                                                                              
                                                                                                                                
     Explanation:                                                                                                               
     This increment would fund increase cost for Polaroid                                                                       
     contract and is a continuation of the FY01 supplemental                                                                    
     request of $68.0.                                                                                                          
                                                                                                                                
Representative Croft  spoke in support  of the amendment. He                                                                    
observed  that  the request  would  provide  photographs for                                                                    
          driver's  licenses. He stressed  the importance of photos  in                                                         
          enforcing underage drinking.                                                                                          
                                                                                                                                
          Representative  Lancaster noted that  the Division has a  new                                                         
          building being  funded and that there was not  enough funding                                                         
          to go around.                                                                                                         
                                                                                                                                
          Representative  Davies expressed  concern  that new  licenses                                                         
          would be issued without pictures.                                                                                     
                                                                                                                                
          Mr.  Spencer clarified  that  the statutes  require that  new                                                         
          licenses have a picture. The  request would address renewals.                                                         
          The department is not sure how  it would meet the requirement                                                         
          for   photographs  on  new   licenses.  The  department   has                                                         
          approximately 6 months of remaining supplies.                                                                         
                                                                                                                                
          Co-Chair  Mulder clarified  that there were  no responses  to                                                         
          the  department's request  for  a new  contract. Mr.  Spencer                                                         
          stated  that  the vendors  did  not  respond because  of  the                                                         
          state's  low volume and roadless  areas. A new proposal  will                                                         
          go out in the fall. Other states  have also had difficulties.                                                         
                                                                                                                                
          TAPE HFC 01 - 47, Side A                                                                                            
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:      Davies, Moses, Croft, Hudson                                                                           
          OPPOSED:       Foster, Harris, Lancaster, Whitaker, Bunde,                                                            
                         Williams, Mulder                                                                                       
                                                                                                                                
          The MOTION FAILED (4-7).                                                                                              
                                                                                                                                
          Representative    Davies    MOVED    to    ADOPT    ADMIN-11.                                                         
          Representative Lancaster OBJECTED.                                                                                    
                                                                                                                                
             ADD:                                                                                                               
             Department            Department of Administration                                                                 
             BRU                   Division of Motor Vehicles                                                                   
             Component             Division of Motor Vehicles                                                                   
                                                                                                                                
             FUNDING SOURCE              AMOUNT                                                                             
             General Funds               $200.0                                                                                 
                                                                                                                                
          Representative  Davies  explained that  in FY01,  $200.0  was                                                         
          funded  from the Investment  Loss Trust  Fund (ILTF), a  one-                                                         
          time funding source. The FY02  Subcommittee budget report did                                                         
          not replace that funding.  Co-Chair  Mulder stated that there                                                         
          was  an attempt to replace one-time  fund sources.  He  noted                                                         
     that this item was not related to personal services.                                                                       
                                                                                                                                
          Representative Lancaster explained  that the requested amount                                                         
          related   to  five  employees.    Representative   J.  Davies                                                         
          countered that would be personal  services.  He stressed that                                                         
          those  people pay there money,  which more than pays  for the                                                         
services the  people want.   He stressed that  there comes a                                                                    
time when  "more for  less" can no  longer be  provided.  He                                                                    
argued that  removing five people  form those services would                                                                    
not be good.                                                                                                                    
                                                                                                                                
Representative Croft recommended using the fees generated by                                                                    
those using these services.   He asked that the Committee go                                                                    
$200  thousand over  the cap  so  that those  generating the                                                                    
amount received from those services would be protected.                                                                         
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft, Williams                                                                                   
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Mulder                                                                                                    
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative    Davies    MOVED    to    ADOPT   ADMIN-12.                                                                    
Representative Lancaster OBJECTED.                                                                                              
                                                                                                                                
         ADD:                                                                                                                   
         Department           Department of Administration                                                                      
         BRU                  Division of Motor Vehicles                                                                        
         Component            Division of Motor Vehicles                                                                        
                                                                                                                                
         F UNDING SOURCE                AMOUNT                                                                              
         General Fund/Program Receipts       $118.5                                                                             
                                                                                                                                
Representative  Davies  explained that  the  amendment would                                                                    
fund two  staff to conduct performance  and financial audits                                                                    
of  704  private  vendor  partners,  including  third  party                                                                    
testers, dealers, and commission agents.                                                                                        
                                                                                                                                
Representative  Lancaster did  not  believe that  there were                                                                    
problems in the referenced area.                                                                                                
                                                                                                                                
Representative Hudson asked the level of performance at this                                                                    
time in the financial auditing.  Mr. Spencer replied that at                                                                    
this time,  there is very  little auditing that  occurs.  If                                                                    
there is no audit,  then there is no awareness whether there                                                                    
is a problem or not.                                                                                                            
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft, Hudson, Williams                                                                           
OPPOSED:       Foster, Harris, Lancaster, Whitaker, Bunde,                                                                      
               Mulder                                                                                                           
                                                                                                                                
The MOTION FAILED (5-6).                                                                                                        
                                                                                                                                
Representative    Croft    MOVED    to    ADOPT    ADMIN-13.                                                                    
Representative Lancaster OBJECTED.                                                                                              
                                                                                                                                
               ADD:                                                                                                             
       Department          Department of Administration                                                                         
               BRU                 AK. Longevity Programs Management                                                            
               Component           Pioneers Homes                                                                               
                                                                                                                                
               FUNDING SOURCE            AMOUNT                                                                             
               General Fund              $2,474.7                                                                               
               Receipts Support Svc.     $2,633.0                                                                               
                                                                                                                                
          Representative Croft commented  that the amendment would fund                                                         
          additional  beds at the Pioneers  Homes.  He pointed  out the                                                         
          increased  fees paid by  the residents at  these homes.   The                                                         
          beds could  be filled if there were proper staff to  care for                                                         
          these people.  He emphasized  that there are unfilled beds in                                                         
          the homes and that the State has a long wait list.                                                                    
                                                                                                                                
          Representative  Lancaster countered  that even  if there  are                                                         
          enough  people  to fill  those  beds,  there are  not  enough                                                         
          nurses  to fill  the jobs.   He  mentioned that  most of  the                                                         
          folks  on the wait  list, need one-to-one  care.  He did  not                                                         
          believe that it would be practical.                                                                                   
                                                                                                                                
          Representative  Croft  agreed  that a  tight  nursing  market                                                         
          exists.   He suggested  that market wages  needs to be  paid.                                                         
          The proposal from the Governor  would be to give a preference                                                         
          to  veterans.  He  reiterated that there  are empty beds  and                                                         
          there are people that want to get into those beds.                                                                    
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:      Davies, Moses, Croft                                                                                   
          OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                           
                   Bunde, Williams, Mulder                                                                                      
                                                                                                                                
          The MOTION FAILED (3-8).                                                                                              
                                                                                                                                
          BREAK:         7:00 PM                                                                                                
          RECONVENE:     7:35 PM                                                                                                
                                                                                                                                
          DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                  
                                                                                                                                
          Co-Chair  Mulder noted that  the amendment should be  changed                                                         
          to $879.8 million dollars.                                                                                            
                                                                                                                                
          Representatives    Williams    MOVED    to    ADOPT    DOT-1.                                                         
          Representative Davies OBJECTED and asked what it would do.                                                            
                                                                                                                                
               ADD:                                                                                                             
       Department          Department of Transportation                                                                         
               BRU                 Marine Highway System                                                                        
               Component           Southwest Shore Operations                                                                   
                                                                                                                                
               FUND SOURCE                    AMOUNT                                                                        
               Marine Highway Sys. Fund       $60,000                                                                           
                                                                                                                                
The   Marine   Highway   Stabilization   Component  requires                                                                    
additional GF in FY02  in order to maintain baseline service                                                                    
to  the  public.    Current  projections  indicate  the fund                                                                    
balance  will reach  zero in  FY02  unless additional  GF is                                                                    
appropriated  or  service   is  reduced.    Funding  of  the                                                                    
increment would allow Alaska Marine Highway System (AMHS) to                                                                    
continue service  uninterrupted through the end  of FY02 - a                                                                    
projected total of 293.1 operating weeks.                                                                                       
                                                                                                                                
He added  that the Kennicott  Long shoring  Expenses, in the                                                                    
amount of  $60.0 Marine Highway  System Fund (AMHS) operates                                                                    
from several privately  owned facilities and municipal piers                                                                    
in  Southwest  Alaska and  Prince  William  Sound;  State or                                                                    
contract employees are not  allowed to handle lines due to a                                                                    
statewide long  shoring agreement.   The  long shoring costs                                                                    
for  the  M/V  Kennicott  are  quadruple  that  of  the  M/V                                                                    
Tustumena.   In  the  winter of  02, the  Kennicott  will be                                                                    
providing the  only service  to Cordova and  Kodiak for five                                                                    
months due to a scheduled overhaul of the M/V Tustumena.                                                                        
                                                                                                                                
Co-Chair Mulder replied  that $879.8 million dollars was the                                                                    
amount that the Marine Highway had requested.  He noted that                                                                    
there  had been  concern regarding  upcoming  increased fuel                                                                    
costs.                                                                                                                          
                                                                                                                                
Representative  Hudson  explained that  the  amendment would                                                                    
provide funding for the items in the amendment.                                                                                 
                                                                                                                                
      ·    $60,000 dollars for the Kennicott long shore                                                                         
        expenses;                                                                                                               
   ·    $819.8 general funds from the AHFC dividend.                                                                            
                                                                                                                                
Representative Hudson noted  that the money would be used to                                                                    
compensate  for the fuel  expenses and  the fact  that these                                                                    
monies  are   no  longer  available   in  the  Stabilization                                                                    
component Fund.                                                                                                                 
                                                                                                                                
Co-Chair  Mulder  requested the  correct  reference  for the                                                                    
amendment.                                                                                                                      
                                                                                                                                
DAVID   TEAL,   DIRECTOR,   LEGISLATIVE   FINANCE  DIVISION,                                                                    
explained that the issue would be to keep the same amount of                                                                    
general funds and add the additional money as Alaska Housing                                                                    
and  Finance  Corporation (AHFC)  dividends.    New language                                                                    
would need  to be added  and another  $879.8 million dollars                                                                    
AHFC dividends.  The add/delete would be deleted.                                                                               
                                                                                                                                
Representative J. Davies  commented that the language on the                                                                    
Whittier Tunnel  appeared to  be "mandatory".   He requested                                                                    
that the Department speak to that concern.                                                                                      
                                                                                                                                
          NANCY SLAGLE, DIRECTOR, DIVISION  OF ADMINISTRATIVE SERVICES,                                                         
          DEPARTMENT  OF TRANSPORTATION  AND PUBLIC FACILITITES,  noted                                                         
          that there  is increased activity due to the  Whittier Tunnel                                                         
          opening which  does pose a problem for the Department  in how                                                         
          to  cover the terminal  operations.   If the Department  does                                                         
          not  receive the  additional money to  cover those  expenses,                                                         
          the Department will have to  reevaluate the services that are                                                         
          provided.   Some  services are  more  mandatory than  others.                                                         
          There   will  need  to  be   a  re-evaluation  done  by   the                                                         
          Department.   Ms.  Slagle stressed  the need  for the  $879.8                                                         
          dollars exists from a variety  of reasons.  The Stabilization                                                         
          Fund will be out of money next year.                                                                                  
                                                                                                                                
          Representative  Davies asked if  the seasonal employee was  a                                                         
          long  shore man.   Ms. Slagle replied that  there was one  on                                                         
          contract.                                                                                                             
                                                                                                                                
          Representative  Davies asked  the  expected revenue  increase                                                         
          that the  marketing effort will provide.  Ms.  Slagle replied                                                         
          that   the  Department  had   completed  a  marketing   study                                                         
          undertaken by the McDowell Group.   That study stated that an                                                         
          operation the size of the Marine  Highway System, should have                                                         
          a  marketing effort of  about $2  million dollars; the  State                                                         
          currently  has  a marketing  effort  of about  $150  thousand                                                         
          dollars.                                                                                                              
                                                                                                                                
          Co-Chair   Mulder   referenced   the   marketing   plan   and                                                         
          recommended  that one  be submitted  for  the Legislature  to                                                         
          look over.   Ms. Slagle noted that the Department  is looking                                                         
          at  marketing  the  off  seasons,   which  currently  do  not                                                         
          generate much revenue.                                                                                                
                                                                                                                                
          There being NO OBJECTION, DOT-#1 was adopted.                                                                         
                                                                                                                                
          Representative Moses WITHDREW amendment DOT-#2.                                                                       
                                                                                                                                
          DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                            
                                                                                                                                
          Representative  Davies  MOVED  to  ADOPT  DEC-#1.    Co-Chair                                                         
          Williams OBJECTED.                                                                                                    
                                                                                                                                
               DELETE:                                                                                                          
               Environmental Health                                                                                             
               Food Safety and Sanitation                                                                                       
               Statutory Designated Program ($167.6)                                                                            
                                                                                                                                
                ADD:                                                                                                            
                Department of Environmental Conservation                                                                        
                Environmental Health                                                                                            
                Food Safety and Sanitation                                                                                      
                General Fund $221.3                                                                                             
                                                                                                                                
                FUND SOURCE                   AMOUNT                                                                          
                General Fund                  $221.3                                                                          
                                                                                                                                
Representative Davies  stated that the  amendment would fund                                                                    
one  annual  routine inspection  of  the  highest  risk food                                                                    
facilities.  While   this  is  less   than  the  risk  based                                                                    
inspection  frequency  analysis  and  less  than  the  level                                                                    
recommended  by  the  Food  Safety  Advisory  Committee,  it                                                                    
significantly advances  public health protection by ensuring                                                                    
the highest risk food  facilities will be inspected at least                                                                    
once each year.                                                                                                                 
                                                                                                                                
Current funding does not adequately protect public health.                                                                      
                                                                                                                                
     · Almost 100% of the risk level four facilities are                                                                        
      being inspected only once per year rather than the                                                                        
      recommended level of four times per year.                                                                                 
   · 49% of the risk level 3 facilities are being inspected                                                                     
     once  per year  rather  than the  recommended  level of                                                                    
     three  times  per  year  according  to  the  Risk Based                                                                    
     Inspection  Frequency  protocol or  twice  per  year as                                                                    
     recommended by the Food Safety Advisory Committee.                                                                         
   · 30% of the risk level 2 facilities are being inspected                                                                     
      once per  year rather  than  the recommended  level of                                                                    
      twice per year according  to the Risk Based Inspection                                                                    
      Frequency protocol or twice per year as recommended by                                                                    
      the Food Safety Advisory Committee.                                                                                       
                                                                                                                                
Co-Chair Williams commented that his office had been working                                                                    
with  the  Department since  the  closeouts  to  address the                                                                    
issue.   He acknowledged  that there are  many problems with                                                                    
the Department because of finances.  He noted that his staff                                                                    
would be working to  address the concern in Anchorage during                                                                    
the summer.                                                                                                                     
                                                                                                                                
Representative Davies  emphasized that it  takes "bodies" to                                                                    
check restaurants.                                                                                                              
                                                                                                                                
TAPE HFC 01 - 47, Side B                                                                                                      
                                                                                                                                
Representative Davies stated  that there should be a roughly                                                                    
50/50 division  between user  fees and general  funds.  That                                                                    
was adopted  for the other fee  structures in the Department                                                                    
of  Environmental  Conservation.    He  commented  that  the                                                                    
determination process  should not be  "rocket science" to do                                                                    
good business by the Department.                                                                                                
                                                                                                                                
Co-Chair Williams recommended  that the facilities should be                                                                    
inspected  once  every year.    He  acknowledged  that today                                                                    
restaurants are  being inspected  once every  two; he agreed                                                                    
that a problem does exist.  Co-Chair Williams stated that to                                                                    
do it correctly,  there needs to  be additional money added,                                                                    
however, he did not believe that $221 thousand dollars would                                                                    
"address" the problem.                                                                                                          
                                                                                                                                
          Representative Croft expounded  that people have the right to                                                         
          expect  that restaurant  inspection  be done  correctly.   He                                                         
          stressed that the job should  be done correctly and should be                                                         
          fully funded.  Representative  Croft did not believe that the                                                         
          funding could be found within  the next year, however, stated                                                         
          that  the  increment  would   help.    He  pointed  out  that                                                         
          outbreaks  have occurred this year.   There is a problem  and                                                         
          he  emphasized that  the increment  is a modest  step in  the                                                         
          right direction.                                                                                                      
                                                                                                                                
          Co-Chair  Williams commented  that he would  be working  with                                                         
          the Department during the interim.   He suggested cooperation                                                         
          in writing up a directive indicating  that the State would be                                                         
          doing  the  inspections.   Co-Chair Williams  commented  that                                                         
          perhaps  each  community  should   be  responsible  for  that                                                         
          service.                                                                                                              
                                                                                                                                
          Representative Croft argued  that this service is a statewide                                                         
          obligation and that the recommendation is modest.                                                                     
                                                                                                                                
          Representative  Whitaker  inquired  the  net  effect  of  the                                                         
          amendment.  Representative Davies  understood that they would                                                         
          be  statutory  designated  program   receipts  that  are  not                                                         
          attainable  allocation  and is  replaced with  slightly  more                                                         
          general funds.                                                                                                        
                                                                                                                                
          BARBARA   FRANK,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                         
          SERVICES,  DEPARTMENT OF  ENVIRONMENTAL CONSERVATION,  agreed                                                         
          that description was correct.                                                                                         
                                                                                                                                
          Representative  Moses  emphasized that  this component  is  a                                                         
          matter of public safety.  If  it is ignored, it will become a                                                         
          serious problem.                                                                                                      
                                                                                                                                
          Representative  Hudson  voiced   confusion  with  the  amount                                                         
          allocated  in the budget at this  time for the service.   Co-                                                         
          Chair Mulder  explained that the net effect of  the amendment                                                         
          would  be that  the gap would  get greater  by $221  thousand                                                         
          dollars.                                                                                                              
                                                                                                                                
          Representative  Croft commented  that historically, the  fees                                                         
          could  be increased providing  the authority through the  fee                                                         
          structure.   The Department did  not believe that they  could                                                         
          increase  the fees  again  this year.   The  restaurants  are                                                         
          willing  to   support  the  inspections.    Last   year,  the                                                         
          authority to increase the fees was not used.                                                                          
                                                                                                                                
          Co-Chair  Williams stated that  the Legislature tried to  fix                                                         
          this  concern last  year.  It  did not  work and the  problem                                                         
          still   exists.    Co-Chair   Mulder  interjected  that   the                                                         
          increment  would  be  a  "band  aid"  on  a  bigger  problem.                                                         
          Representative  Davies countered  that  this would  not be  a                                                         
          band-aid.   He  clarified  that last  year  the Division  was                                                         
          given  a "hallow" appropriation.   Co-Chair Mulder  countered                                                         
that that  last year,  they were  given statutory designated                                                                    
program receipt authority  to contract with the cities to do                                                                    
the inspection.   Representative  J. Davies  stated that was                                                                    
not true.                                                                                                                       
                                                                                                                                
Ms.  Frank   explained  that  last   year  money  was  given                                                                    
specifically for fresh/frozen seafood inspections.  Co-Chair                                                                    
Williams noted that the  State was in the same position last                                                                    
year as it is today.                                                                                                            
                                                                                                                                
Representative Hudson asked  if the Department had authority                                                                    
to establish  a designated program, someone  had to make the                                                                    
decision  not  to  do   that,  either  the  vendors  or  the                                                                    
department chose not to  solicit.  He asked who chose not to                                                                    
do that.   Ms. Frank clarified that  the Department went out                                                                    
to the seafood processors  who were the target of the funds,                                                                    
and  they  were not  willing  to  enter  into  a contractual                                                                    
agreement.  They want "real" money to do real inspection and                                                                    
that  money  not  to be  tied  to  those  reasons  stated by                                                                    
Representative J. Davies.                                                                                                       
                                                                                                                                
Co-Chair   Mulder  noted   that   restaurants   and  seafood                                                                    
processors were  being interchanged.   He  inquired how much                                                                    
went to each.  Ms.  Frank advised that last year, the $167.6                                                                    
was specifically  intended to be used  for one concern.  She                                                                    
noted that the Department  does recognize that there is much                                                                    
more that they could do to coordinate their inspections.                                                                        
                                                                                                                                
Representative    Croft   thought    that    Department   of                                                                    
Environmental Conservation  makes very different inspections                                                                    
than Environmental  Protection  Agency (EPA).   He suggested                                                                    
the task is simple, either do the inspection or not do it.                                                                      
                                                                                                                                
Representative  Whitaker asked  what  is "highest  risk food                                                                    
facilities".   Ms. Frank  explained that  the Department has                                                                    
four different  categories of risk facilities.   It is based                                                                    
on the relative risk to public health.                                                                                          
                                                                                                                                
Co-Chair Mulder asked  if without adoption of the amendment,                                                                    
would the process continue  at status quo.  Ms. Frank stated                                                                    
it would.                                                                                                                       
                                                                                                                                
Representative Harris asked  if the Department would need $3                                                                    
million dollars for the whole system.                                                                                           
                                                                                                                                
Representative  Whitaker  asked if  the  requested increment                                                                    
would provide  for a  yearly inspection at  the highest risk                                                                    
food facilities.   He asked if there  was legal liability in                                                                    
not inspecting  those facilities.   Ms. Frank explained that                                                                    
she could  not speak to the  legal liability, however, there                                                                    
needs to be a reduction to the public health risks.                                                                             
                                                                                                                                
Co-Chair Mulder questioned  if the State had ever been sued.                                                                    
Ms. Frank was unaware of it.                                                                                                    
                                                                                                                                
          Co-Chair  Williams asked  that the Department  work with  the                                                         
          Legislature  a  little  more.   Ms.  Frank  stated  that  the                                                         
          Department would commit to working with the Department.                                                               
                                                                                                                                
          Co-Chair  Williams  WITHDREW  his  OBJECTION  and  asked  the                                                         
          Department to  work a little more closely with his  office to                                                         
          address the  concern.  Ms. Frank noted that there would  be a                                                         
          commitment for  the Department to work more closely  with Co-                                                         
          Chair  Williams office.   There being  NO further  OBJECTION,                                                         
          DEC-1 was adopted.                                                                                                    
                                                                                                                                
          Representative  Davies  MOVED   to  ADOPT  DEC-2.    Co-Chair                                                         
          Williams OBJECTED.                                                                                                    
                                                                                                                                
               ADD:                                                                                                             
               Department     Department of Environmental Conservation                                                          
               BRU            Office of the Commissioner                                                                        
               Component      Office of the Commissioner                                                                        
                                                                                                                                
               FUND SOURCE               AMOUNT                                                                             
               General Fund              $300.0                                                                                 
                                                                                                                                
          Representative  Davies explained that  the funding was a  new                                                         
          request  to provide  the State with  a systematic  monitoring                                                         
          program of heavy metals and/or  persistent organic pollutants                                                         
          in Alaska's seafood products.  The safety of seafood products                                                         
    is a growing concern in the United States and Europe.                                                                       
                                                                                                                                
          Without  a  systematic  monitoring program,  Alaska  will  be                                                         
          unable  to respond  to questions  from  commercial buyers  of                                                         
          Alaska  seafood or recreational  and subsistence users as  to                                                         
          the safety of our seafood products.                                                                                   
                                                                                                                                
          Representative  J. Davies  observed that  the State would  be                                                         
          unable to respond to federally  issued consumption advisories                                                         
          because  we would lack the  scientific data to dispute  them.                                                         
          Our  inability   to  credibly  challenge  these   consumption                                                         
          advisories  will ultimately impact the marketing  of Alaska's                                                         
          seafood  products, which  currently enjoy  a major  marketing                                                         
          advantage   over  other  seafood  products  because   of  the                                                         
          perceived purity of our environment.                                                                                  
                                                                                                                                
          Representative  J. Davies stated  that Alaska  is one of  the                                                         
          few  states without some kind  of routine monitoring  program                                                         
          for heavy metals and/or persistent  organic pollutants in its                                                         
          fishery resource.                                                                                                     
                                                                                                                                
          TAPE HFC 01 - 48, Side A                                                                                            
                                                                                                                                
          Representative  Davies emphasized that the federal  return on                                                         
          the state expenditure is great.                                                                                       
                                                                                                                                
          Co-Chair  Williams noted  that  the EPA  indicated that  fish                                                         
were   contaminated.   The   Department   of   Environmental                                                                    
Conservation worked with  the EPA to correct the problem. He                                                                    
observed that federal grants might be available.                                                                                
                                                                                                                                
Ms. Frank noted that the department believes that they could                                                                    
use federal funds  for a portion or  the entire request. She                                                                    
thought  that a  60/40 percent  federal/state  match program                                                                    
could be  utilized. The  department looked  at acquiring the                                                                    
match  through  the  Commercial  Fish  Loan  Fund.  There is                                                                    
sufficient money in the fund to meet the match.                                                                                 
                                                                                                                                
Representative  Hudson suggested that  it would  make a good                                                                    
Alaska Science and Technology Foundation project.                                                                               
                                                                                                                                
Co-Chair  Williams observed  that  the state  cannot control                                                                    
contaminates  that come  from  other areas.  Co-Chair Mulder                                                                    
thought that the use  of the Commercial Fisherman's Fund has                                                                    
merit. He stated that  he "was a little bit afraid of asking                                                                    
questions that I am not  sure I want to know the answer to."                                                                    
He emphasized that the focus is to protect the industry.                                                                        
                                                                                                                                
Representative Foster  questioned if the  testing is random.                                                                    
Ms. Frank  affirmed. The  department has  found that federal                                                                    
alerts  do not  generally  apply to  Alaska.  The department                                                                    
wants data to assure that Alaskan fish are clean.                                                                               
                                                                                                                                
Representative Croft concluded that there is indication that                                                                    
the  state of  Alaska's fish  are clean  and that  a through                                                                    
check could  be used  to demonstrate that  Alaska's fish are                                                                    
clean.                                                                                                                          
                                                                                                                                
Representative   Harris   asked  what   other   states  have                                                                    
monitoring systems. Ms. Frank did not know.                                                                                     
                                                                                                                                
Co-Chair Mulder questioned if the department needs statutory                                                                    
budgetary authority to use non-point source funds. Ms. Frank                                                                    
did  not think  authority  was needed  for  non-point source                                                                    
funds. She  observed that the issue  is the match authority.                                                                    
She  suggested that  $120 thousand  dollars in  general fund                                                                    
match in  the seafood component  be replaced with Commercial                                                                    
Fish and Loan Fund  receipts. There is already $175 thousand                                                                    
dollars in the component. This would provide access to cover                                                                    
the general fund match. Authority to expend the general fund                                                                    
match on the seafood-monitoring program would be needed.                                                                        
                                                                                                                                
Co-Chair Mulder  recommended that the  amendment be held for                                                                    
further review.                                                                                                                 
                                                                                                                                
Representative Davies WITHDREW Amendment DEC-2.                                                                                 
                                                                                                                                
Department of Community and Economic Development                                                                              
                                                                                                                                
Representative Lancaster MOVED to ADOPT Amendment DEC-1:                                                                        
                                                                                                                                
               ADD                                                                                                              
               BRU:      Alaska Seafood Marketing Institute                                                                     
               Component:Alaska Seafood Marketing Institute                                                                     
               Fund Source                              Amount                                                                  
       Receipt Supported Services               $ 700.0                                                                         
                                                                                                                                
               Purpose:                                                                                                         
               In   the   FY  02   operating  budget   submission   and                                                         
               subcommittee   review   process,   the   Department   of                                                         
               Community   and   Economic   Development   inadvertently                                                         
               neglected  to  request   an  increment  for  the  Alaska                                                         
               Seafood  Marketing  Institute  (ASMI) to  carry  forward                                                         
               their  unexpended and  unbigoted balance  at the end  of                                                         
               FY01.   ASMI estimates this amount will be  $700.0. This                                                         
               amendment corrects the omission by DCED.                                                                         
                                                                                                                                
          Representative Lancaster explained that the request would                                                             
          allow the carry-forward to be spent in the next fiscal year.                                                          
          There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
          Representative Ken Lancaster MOVED to ADOPT Amendment DCED-                                                           
          2:                                                                                                                    
                                                                                                                                
               ADD                                                                                                              
               BRU:      Investments                                                                                            
               Component:Investments                                                                                            
               Fund Source                         Amount                                                                       
               Rural Development Initiative Fund             $43.0                                                              
                                                                                                                                
               Purpose:                                                                                                         
               CHAPTER  117 SLA 00 renamed  the Rural Development  Fund                                                         
               to  the Rural Economic  Development Initiative Fund  and                                                         
               added,  under  Sec. 44.88.6000,  the  Rural  Development                                                         
               Initiative  Fund  as  a  new  program  to  AIDEA.    The                                                         
               Division  of Investment will  act as the  loan-servicing                                                         
               agency for the program.  The Division anticipates a cost                                                         
               to  administer the program of  43.0.  This program  will                                                         
               not result in increased staff.                                                                                   
                                                                                                                                
          Representative  Lancaster explained that the amendment  would                                                         
          give  the Division of Investments  authority to manage  a new                                                         
          fund  in Alaska Industrial  Development and Export  Authority                                                         
          (AIDEA).  The  general fund  amount  is not  affected.  There                                                         
          being NO OBJECTION, it was so ordered.                                                                                
                                                                                                                                
          Representative Davies MOVED to ADOPT Amendment DCED-3:                                                                
                                                                                                                                
               ADD                                                                                                              
               BRU:      Qualified Trade Association Contract                                                                   
               Component:Qualified Trade Association Contract                                                                   
               General Funds                  199.8                                                                             
                                                                                                                                
               A   reduction  of  $199.8  from  the   tourism-marketing                                                         
               contract   will   result  in   a  loss   of   television                                                         
     advertising and further  erosion of the state's ability                                                                    
     to complete  with other destinations.  In addition, the                                                                    
     contract requires  this amount  to be  matched by $85.6                                                                    
     from the private sector for a total loss to the program                                                                    
     of $285.4.                                                                                                                 
                                                                                                                                
Representative Davies spoke in support of the amendment.                                                                        
                                                                                                                                
Representative  Lancaster  observed  that  the  subcommittee                                                                    
funded the  item to  its ability.  Co-Chair Mulder clarified                                                                    
that a step  down was anticipated and  that it is consistent                                                                    
with the plan as designed.                                                                                                      
                                                                                                                                
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF                                                                    
COMMUNITY  AND  ECONOMIC   DEVELOPMENT  explained  that  the                                                                    
legislation that was  passed do not completely correspond to                                                                    
the  step  down  in  the  Millennium  Plan.  The legislation                                                                    
provided a private sector  match of 30 percent for FY 01 and                                                                    
FY02. The  budget request was based  on $4.8 million because                                                                    
when the legislation passed it was supposed to be matched 30                                                                    
percent. The department  did not think there was supposed to                                                                    
be a step down.                                                                                                                 
                                                                                                                                
Representative Davies WITHDREW Amendment DCED-4.                                                                                
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DCED-4:                                                                           
                                                                                                                                
     ADD                                                                                                                        
     BRU:      Regulatory Commission of Alaska                                                                                  
     Component:Regulatory Commission of Alaska                                                                                  
     RCA Receipts                  352.9                                                                                        
                                                                                                                                
     Addition of  seven new  positions are  needed to ensure                                                                    
     that  the RCA  continues to  maintain  a high  level of                                                                    
     service to  the utility industries  and their consumers                                                                    
     in the face of substantial and increasing workload.                                                                        
                                                                                                                                
     The positions to be added are:                                                                                             
     Admin Clerk II (Range 8)- Records and Filings Section.                                                                     
                                                                                                                                
     Microcomputer  Network   Technician  I/II  Flex  (Range                                                                    
     14/16)- I.S. Section.                                                                                                      
                                                                                                                                
     Communications  Common Carrier  Specialist  (Range 22)-                                                                    
     Common Carrier Section.                                                                                                    
                                                                                                                                
     Consumer  Protection and  Information Officer  I (Range                                                                    
     14)- Consumer Protection & Information Section.                                                                            
                                                                                                                                
     Paralegal Assistant I/II Flex (Range 13/16)- Commission                                                                    
     Support Section.                                                                                                           
                                                                                                                                
     Secretary (Range 11)- Commission Support Section                                                                           
                                                                                                                                
               Utility Engineering Analyst  III (Range 19)- Engineering                                                         
               Section.                                                                                                         
                                                                                                                                
          Representative  Croft spoke in  support of the amendment.  He                                                         
          noted  that  the  increase   would  be  in  receipt-supported                                                         
          services to  continue their work and reduce the  backlog. She                                                         
          pointed out  that a change in federal law will bring  600 new                                                         
          rural water/sewage  utilities certifications before  the RCA.                                                         
          He  noted that the additional  staff would only result  in an                                                         
    increase of .01 cent per month on the bills received.                                                                       
                                                                                                                                
          Representative   Lancaster  observed   that  the   department                                                         
          received  11  new  employees  in  1988,  when  the  telephone                                                         
          utility   deregulated.  He   questioned  where  the   program                                                         
          receipts  would  come from  and  anticipated that  the  state                                                         
          would   have  to  pick  up   the  tab  if  the  new   utility                                                         
          applications are not received.                                                                                        
                                                                                                                                
          Representative Croft WITHDREW Amendment DCED-4.                                                                       
                                                                                                                                
     Representative Croft MOVED to ADOPT Amendment CED-5:                                                                       
                                                                                                                                
                    Community and Business Development                                                                          
                    Grants, Claims (ARDOR Grants)                                                                               
                    Fund Source               Amount                                                                            
                    General Fund            $239,320                                                                            
                                                                                                                                
               The ARDOR program appropriation  has been $650,000 since                                                         
               State  Fiscal  Year 1997.  At  the  time there  were  11                                                         
               ARDORS's  sharing the $620,000  of grant funding, or  an                                                         
               average  of $56,364  per ARDORs. For  State Fiscal  Year                                                         
               2002,  there are 14  ARDOR's, the  average grant in  the                                                         
               Governor's Budget would be $44,286.                                                                              
                                                                                                                                
               Considering  the inflation increase during this  period,                                                         
               each  Alaska Regional  Development Organization  (ARDOR)                                                         
               would have to receive $61,380  in FY2002 to maintain the                                                         
               same buying owner that  it had in FY1997 (8.9% inflation                                                         
               increase  during  this  period).  The  total  amount  of                                                         
               grants  available for FY2002  would have to be  $859,320                                                         
               (14  x  $61380)  to maintain  that  buying  power.  This                                                         
               amendment  essentially  keeps  the  grants  as  well  as                                                         
               administration costs up with inflation.                                                                          
                                                                                                                                
          Representative Lancaster noted  that the request did not come                                                         
          before  the  Subcommittee.   He  expressed  support  for  the                                                         
          request but questioned the funding mechanism.                                                                         
                                                                                                                                
          Co-Chair  Mulder  OBJECTED. He  pointed  out that  the  ARDOR                                                         
          program   was  created   to  provide  seed   money  for   the                                                         
          organizations,  with  the  anticipation that  they  would  be                                                         
          self-reliant.                                                                                                         
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
IN FAVOR: Moses, Croft                                                                                                          
OPPOSED:  Bunde, Davies,  Foster, Harris, Hudson, Lancaster,                                                                    
          Whitaker, Mulder, Williams                                                                                            
                                                                                                                                
The MOTION FAILED (2-9).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DCED-6:                                                                           
                                                                                                                                
     Add new BRU:                                                                                                               
     Renters' Equivalency Rebate                                                                                                
     300.0 GF                                                                                                                   
                                                                                                                                
Representative Croft  spoke in support  of the amendment. He                                                                    
observed that the program  was the rental portion for senior                                                                    
and  disabled veteran  property  tax exemption.  The program                                                                    
sent rebates to over  1,000 seniors and disabled veterans in                                                                    
1998.  The  average annual  payment  was  $277  dollars. The                                                                    
program has not been funded for the past two years.                                                                             
                                                                                                                                
Co-Chair Mulder  acknowledged the intent  of the program but                                                                    
maintained  that  the  state  of  Alaska  cannot  afford the                                                                    
program.                                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Croft, Davies                                                                                                  
OPPOSED:  Bunde,   Foster,    Harris,   Hudson,   Lancaster,                                                                    
          Whitaker, Mulder, Williams                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
HB  103 and  HB 104  were heard  and  HELD in  Committee for                                                                    
further consideration.                                                                                                          
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 9:00 p.m.                                                                                          

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