Legislature(1993 - 1994)
05/04/1994 01:50 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 4, 1994
1:50 P.M.
TAPE HFC 94 - 156, Side 2, #000 - end.
TAPE HFC 94 - 157, Side 1, #000 - end.
TAPE HFC 94 - 157, Side 2, #000 - end.
TAPE HFC 94 - 158, Side 1, #000 - #675.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:50 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Representative David Finkelstein; Representative John
Davies; Representative Jeanette James; Senator Fred Zharoff;
Richard Pegues, Director, Administrative Services Division,
Department of Law; James Baldwin, Assistant Attorney
General, General Civil Division, Department of Law; Wendy
Redman, Vice President for University Relations, University
of Alaska; Nancy Slagle, Director, Division of Budget
Review, Office of Management and Budget; Bruce Geraghty,
Deputy Commissioner, Department of Community and Regional
Affairs; Bob Poe, Director, Division of Administrative
Services, Department of Environmental Conservation; Ginny
Fay, Prince William Sound Regional Citizens Advisory
Council, Juneau; Jay Hogan, Staff, Representative Ron
Larson; Bryce Edgmon, Staff, Senator George Jacko; Greg
Winegar, Manager, Juneau Lending Branch, Division of
Investments, Department of Commerce & Economic Development;
Russel Heath, Executive Director, Alaska Environmental
Lobby, Juneau.
SUMMARY
HB 455 An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date.
HB 455 was HELD in Committee for further
1
consideration.
SB 92 An Act relating to an advisory vote during
regional educational attendance area school board
elections; and providing for an effective date.
CS SB 92 (CRA) efd am was reported out of
Committee with a "do pass" recommendation and a
fiscal note by the Office of the Lt. Governor
dated 3/24/94 and a zero fiscal note by the
Department of Education dated 3/24/94.
SB 132 An Act relating to loans for the purchase of
individual fishery quota shares.
CS SB 132 (RES) am was reported out of Committee
with "no recommendations" and with a fiscal note
by the Department of Commerce and Economic
Development dated 2/04/94 and a Letter of Intent
provided by the House Resources Committee.
SB 215 An Act relating to and redesignating the oil and
hazardous substance release response fund and to
its use in the event of a disaster emergency;
repealing the authority in law by which marine
highway vessels may be designed and constructed to
aid in oil and hazardous substance spill cleanup
in state marine water using money in the oil and
hazardous substance release response fund;
amending requirements relating to the revision of
state and regional master prevention and
contingency plans; altering requirements
applicable to liens for recovery of state
expenditures related to oil or hazardous
substances; amending the authority to contract to
provide personnel to respond to a release or
threatened release of oil or a hazardous substance
and to contract to conduct spill related research;
reassigning responsibility for the oil and
hazardous substance response corps and for the
emergency response depots to the Department of
Environmental Conservation, and for the operation
of the state emergency response commission and its
attendant responsibilities for the local emergency
planning commissions to the Department of Military
and Veterans' Affairs; and modifying definitions
of terms relating to the preceding provisions;
terminating the nickel-per-barrel oil conservation
surcharge; levying and collecting two new oil
surcharges; and providing for the suspension and
reimposition of one of the new surcharges; and
providing for an effective date.
2
CS SB 215 (FIN)am (efd fld) was HELD in Committee
for further consideration.
HOUSE BILL NO. 455
"An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date."
Representative Brown MOVED TO WITHDRAW the pending motion on
Amendment #16 - the Department of Transportation and Public
Facilities' request for the road connecting the Seward
Highway and the Port of Whittier. There being NO OBJECTION,
it was withdrawn.
REPRESENTATIVE JEANNETTE JAMES spoke in support of Amendment
earnings of the Alaska Science and Technology endowment to
the University of Alaska, Fairbanks, agricultural and
forestry experiment station for the virus-free seed potato
project.
Representative Foster MOVED to adopt Amendment #1. There
being NO OBJECTION, it was adopted.
RICHARD PEGUES, DIRECTOR, ADMINISTRATIVE SERVICES DIVISION,
DEPARTMENT OF LAW, spoke in support of Amendment #2 which
would provide the sum of $100 thousand dollars from the
general fund to the Department of Law for attorney fees
related to Weiss versus the State of Alaska for the fiscal
year ending June 30, 1994.
Co-Chair Larson MOVED to adopt Amendment #2. There being NO
OBJECTION, it was adopted.
JAMES BALDWIN, ASSISTANT ATTORNEY GENERAL, GENERAL CIVIL
DIVISION, DEPARTMENT OF LAW, spoke in support of Amendment
appropriated to the Department of Law for costs relating to
legal proceedings involving oil and gas revenue due or paid
to the State or state title to oil and gas land for the
fiscal year ending June 30, 1995.
Co-Chair Larson MOVED to adopt Amendment #3. Co-Chair
MacLean OBJECTED suggesting that the Department of Law
should return each year to request additional funding.
Representative Brown spoke in support of Amendment #3
declaring that funding the amendment would indicate
legislative support to the Department's effort.
A roll call vote was taken on the MOTION.
3
IN FAVOR: Navarre, Brown, Foster, Grussendorf,
Hoffman, Larson.
OPPOSED: Parnell, Therriault, Hanley, Martin,
MacLean.
The MOTION PASSED (6-5).
Representative Brown MOVED to adopt Amendment #4, a
recommendation of the Alaska Judicial Council as instructed
by the Legislature in order to implement a plan for
integration of Alaska's criminal justice computer system.
She added that information systems within each department
warrant major work. The requested funding would cover costs
for preparation of a system within the Department of
Corrections and the Department of Law. Representative
Parnell understood that the Department of Public Safety
currently was working on coordinating a statewide plan. Co-
Chair MacLean OBJECTED to adopting Amendment #4.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre.
OPPOSED: Parnell, Therriault, Foster, Martin,
MacLean, Larson.
Representative Hanley was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment #5.
REPRESENTATIVE JOHN DAVIES explained the $3 million dollars
request would provide for an appropriation from the general
fund to the University of Alaska for the completion of the
Natural Sciences Classroom building in Fairbanks.
Representative Navarre MOVED TO AMEND Amendment #5 by
deleting "Natural Sciences" and "Fairbanks" and inserting
"Kenai". He expressed discontent with continual capital
improvement requests by the University for campuses in
Fairbanks, Anchorage and Juneau. Representative Davies
stated he would not support the amended language as
requested by Representative Navarre. Representative Navarre
WITHDREW THE MOTION to amend. There being NO OBJECTION, the
amended language was withdrawn.
Co-Chair MacLean OBJECTED to adopting Amendment #5 pointing
out that no construction money had been allocated to schools
K-12 this year.
Representative Davies stressed that the proposed request has
4
been a priority project of the University for twenty years.
The project is currently under construction and nearing
completion and that without the appropriation the building
would be closed. The University would then be forced to
spend $500 thousand dollars to just maintain the building
with no students. He added that the initial construction
costs had been deliberately under-funded and that the
Legislature knew at that time that there would be additional
financial need to finish construction. He emphasized that
each year the project is delayed will waste the State money
to maintain an empty building.
(Tape Change, HFC 94-157, Side 1).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Brown, Grussendorf, Hoffman.
OPPOSED: Foster, Martin, Navarre, Parnell,
Therriault, Larson, MacLean.
Representative Hanley was not present for the vote.
The MOTION FAILED (3-7).
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, explained
Amendment #6, a request for a supplemental appropriation
increase from the Department of Law to pay a FY94 judgments.
She added that the $19,832 increase was created by one new
judgement received since the Department's last request which
was submitted on April 30, 1994.
Representative Brown MOVED to adopt Amendment #6 explaining
that judgments are the State's obligation. Co-Chair MacLean
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Martin,
Navarre, Parnell.
OPPOSED: Therriault, Foster, Larson, MacLean.
Representative Hanley was not present for the vote.
The MOTION PASSED (6-4).
Co-Chair Larson MOVED that the lapse date for the Sitka
School District and the appropriation for seed potatoes be
extended until June 30, 1995. There being NO OBJECTIONS, it
was adopted.
5
Reappropriation Budget
BRUCE GERAGHTY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY
AND REGIONAL AFFAIRS, requested that the Committee extend
the Department's lapse on last years appropriations to June
30, 1995.
Co-Chair MacLean MOVED to adopt Amendment #1, which would
state "the unexpended and unobligated balance of the
appropriation made in Sec. 6, Ch.19, SLA1993, Page 4, Line
22 [Operating costs for the Department of Community and
Regional Affairs to carry out its power and duties under
AS42.45 and AS44.47.050] and lapses into the general fund
June 30, 1995". Representative Navarre OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hoffman, MacLean,
Larson.
OPPOSED: Parnell, Therriault, Brown, Hanley,
Martin, Navarre.
The MOTION FAILED (5-6).
Representative Brown WITHDREW Amendment #4. There being NO
OBJECTION, it was so ordered.
Co-Chair MacLean MOVED to adopt Amendment #3 which would
provide funding for the Cambridge Way/Tudor Road traffic
signal and Cambridge Way improvements. There being NO
OBJECTIONS, Amendment #3 was adopted.
Co-Chair MacLean MOVED to adopt Amendment #4 which would
provide funding for the Municipality of Anchorage -
signalization at 36th Avenue and Cottonwood Street and
Locarno Street in the amount of $214 thousand dollars.
There being NO OBJECTIONS, it was adopted.
HB 455 was HELD in Committee for further consideration.
SENATE BILL 92
"An Act relating to an advisory vote during regional
educational attendance area school board elections; and
providing for an effective date."
SENATOR FRED ZHAROFF stated that SB 92 would add a provision
whereby communities in REAA school areas would be able to
voice their positions on education via an advisory vote on
the regular school ballot. He pointed out that REAA schools
are spread over a wide area, and that it is often difficult
for members of those communities to attend board meetings in
6
order to make their feelings known. The bill would allow
the school board to adopt a resolution requesting that the
advisory question be on the next ballot. He concluded that
the Department of Education supports the legislation.
Representative Hanley MOVED to report CS SB 92 (CRA)(efd am)
out of Committee with individual recommendations and with
the accompanying fiscal notes. There being NO OBJECTIONS,
it was so ordered.
CS SB 92 (CRA)(efd am) out of Committee with a "do pass"
recommendation and with a fiscal note by the Office of the
Governor dated 3/24/94 and a zero fiscal note by the
Department of Education dated 3/24/94.
SENATE BILL 132
"An Act relating to loans for the purchase of
individual fishery quota shares."
BRYCE EDGMON, STAFF, SENATOR GEORGE JACKO, explained that CS
SB 132 would expand the Commercial Fisheries Revolving Loan
Fund Program to allow Alaskan fishermen to obtain loans to
purchase Individual Fisheries Quotas (IFQs). The Commercial
Fisheries Revolving Loan Fund Program would service the debt
to purchase limited entry permits, purchase or upgrade
vessels, and purchase fisheries related gear.
Co-Chair MacLean MOVED to report CS SB 132 (RES) am out of
Committee with individual recommendations and with the
accompanying fiscal notes. She explained that the IFQs are
transferrable, which creates a fear that fishermen from out
of state will purchase the Alaskan fishing permits. The
Division of Investments would provide loan money through the
Revolving Loan Fund, whereas Alaskan commercial banks are
reluctant to help Alaskan fishermen who do not have
sufficient collateral. The legislation would keep Alaskan
fishermen in business in Alaskan waters.
Representative Brown asked the total amount of money which
the State would be distributing. Mr. Edgmon replied that $5
million dollars would be loaned in FY95 and then between $4
and $5 million dollars appropriated in FY96. He pointed out
that the qualification requirements are stringent. The
Division of Investments does have a regulation priority
listing.
Representative Brown deliberated on the different loan
funding resources available in the State. She spoke against
providing commercial opportunity to fishmen over another
class of requestors. Mr. Edgmon responded that when the
program was established, it was the intent of the State to
7
keep as many limited entry permits in residence ownership.
The loan program was established in order to offer that
arrangement to as many fishermen as possible. The program
allows resident fishermen to compete with nonresident
fishermen who have better access to capital.
(Tape Change, HFC 94-157, Side 2).
Representative Grussendorf commented that the IFQ's would
provide collateral for the small fisherman. The program
would keep the limited entry permits in the State.
Representative Hoffman added that the fishing industry is a
renewable resource and will continue to provide jobs to many
small rural areas within Alaska.
GREG WINEGAR, MANAGER, JUNEAU LENDING BRANCH, DIVISION OF
INVESTMENTS, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, responded to Representative Navarre's questions
regarding the loan requirements for State resident's. He
advised that the residency requirement was the same for all
eligibility requirements, pointing out that law states in
Section #A that a person would have to actively participate
for the past five years which would have to include the
preceding season. The current legislation would change that
to indicate participation for two of the past five years and
that it would be necessary to include the preceding season.
The borrowing interpretation would be more liberal than that
of the past.
There being NO OBJECTIONS, to reporting the bill from
Committee, it was so ordered. Representative Foster MOVED
to adopt the House Resources Committee Letter of Intent.
There being NO OBJECTIONS, it was so ordered.
CS SB 132 (RES) am was reported out of Committee with "no
recommendations", with the House Resources Committee Letter
of Intent and with a fiscal note by the Department of
Commerce and Economic Development dated 2/04/94.
SENATE BILL 215
"An Act relating to and redesignating the oil and
hazardous substance release response fund and to its
use in the event of a disaster emergency; repealing the
authority in law by which marine highway vessels may be
designed and constructed to aid in oil and hazardous
substance spill cleanup in state marine water using
money in the oil and hazardous substance release
response fund; amending requirements relating to the
revision of state and regional master prevention and
contingency plans; altering requirements applicable to
liens for recovery of state expenditures related to oil
or hazardous substances; amending the authority to
8
contract to provide personnel to respond to a release
or threatened release of oil or a hazardous substance
and to contract to conduct spill related research;
reassigning responsibility for the oil and hazardous
substance response corps and for the emergency response
depots to the Department of Environmental Conservation,
and for the operation of the state emergency response
commission and its attendant responsibilities for the
local emergency planning commissions to the Department
of Military and Veterans' Affairs; and modifying
definitions of terms relating to the preceding
provisions; terminating the nickel-per-barrel oil
conservation surcharge; levying and collecting two new
oil surcharges; and providing for the suspension and
reimposition of one of the new surcharges; and
providing for an effective date."
Representative Therriault MOVED to adopt 8-LS1107\T,
Chenoweth, 5/02/94, as the version before the Committee.
Co-Chair MacLean OBJECTED stating that the Governor's Office
would not support that version. Representative Therriault
advised that he would be offering two amendments to the
draft which would remedy the concerns of the Administration.
He distributed and explained a spread sheet "Summary of
Changes - CSSB 215 (FIN) am, HCS CS SB 215 (RES), HCS CS SB
215 (STA), and the proposed work draft". [Copy on file].
BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, addressed concerns
of the Department resulting from the work draft. He pointed
out that there are a number of changes made to that version
which warrant concern. He clarified that there exists only
one situation in which DEC could spend money from the
current response fund or the future response account within
the response fund. This would occur when a spill is
eminent. Over the entire history of that fund, only $1.9
million dollars of the total $122 million dollars has been
spent. The remaining portion of the fund was appropriated
by the Legislature.
The original intention of the prevention account was to
provide funds to DEC and other state agencies to both
prevent spills and to be better prepared to respond to
spills. The response account, as passed by the Senate and
the House Resources Committee, is intended to deal with all
spills, including the small spills. Mr. Poe pointed out
that most of the spills which DEC responds to are well under
2,500 barrels. Under the bills passed from the Senate and
House Resources Committees, there is no threshold used to
determine when the response money could be used in order to
respond to a spill. He added that the work draft version
9
would establish an artificial threshold which would be of
great concern to the Department.
Mr. Poe continued that the work draft would establish a
special account in the prevention account which would be
used for the smaller spills. He explained that the problem
is that a large fund would be necessary in order to address
those times when a responsible party creates a spill. The
party would then be forced to clean it up appropriately or
the fund money would be used for litigation. Mr. Poe
stressed that the State does not know what future spills
will occur.
The work draft also would require that the Governor be
informed of a spill within 72 hours of the spill at which
time he would provide specific instruction regarding action
to take to address that spill. Mr. Poe emphasized that
requiring the Governor's approval to act could be harmful
timing for the State. Representative Therriault interjected
that a proposed amendment would address that concern.
(Tape Change, HFC 94-158, Side 1).
GINNY FAY, PRINCE WILLIAM SOUND REGIONAL CITIZENS ADVISORY
COUNCIL, JUNEAU, briefed the Committee on the development of
the legislation. The bill was originally drafted from a
research analysis completed in 1992, which erroneously
stated that the response fund was empty. At that time,
there remained $27 million dollars in that account. Ms. Fay
emphasized that the bill gained momentum based on incorrect
information.
She added that the bill would not protect the coastal
communities nor public interest. SB 215 is an industry
bill, emphasizing that based on a Department of Revenue's
fiscal note, the legislation would be worth $50 million
dollars over the next six years in lower surcharge payments.
Ms. Fay concluded that the legislation as passed through the
Senate and the House Resources Committees continued to allow
the response account to be used for spill response. The
proposed work draft would make the prevention account also
serve for the response fund and would also lower the
surcharge payment from five cents to three cents. She
stressed that the work draft was unacceptable.
RUSSEL HEATH, EXECUTIVE DIRECTOR, ALASKA ENVIRONMENTAL
LOBBY, JUNEAU, encouraged the Committee to adopt the House
Resources version of the bill. He pointed out that the
Resources committee substitute places the entire $37 million
dollars into the response account. The Alaska Environmental
10
Lobby (AEL) would recommend that balance to be split 60/40
percent between prevention and response accounts. He noted
concern in adding the underground storage tanks to the
prevention account. He thought that action would encourage
money to be taken from the prevention account program and
would drain money from other necessary prevention accounts.
REPRESENTATIVE DAVID FINKELSTEIN reiterated that the tax
levied should be used for the concerns which created that
tax. He spoke against splitting the fund. Currently enough
money does not exist to address the needs of the original
program, whereas, the proposed legislation would add more
obligations from that fund. Representative Finkelstein
encouraged implementing an increased gas tax in order to
make the programs balance.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Martin, Parnell, Therriault,
Foster, Larson.
OPPOSED: Hoffman, Navarre, Brown, Grussendorf,
MacLean.
The MOTION PASSED (6-5).
Representative Therriault MOVED to adopt Amendment #1 which
would eliminate the 72 hour notice and approval requirement.
There being NO OBJECTION, it was adopted.
Representative Therriault MOVED to adopt Amendment #2 which
would delete "threatened release". Representative Martin
OBJECTED.
Mr. Poe noted that the Department would support Amendment
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Parnell, Therriault,
Brown, Foster, Grussendorf, Hanley,
Larson, MacLean.
OPPOSED: Martin.
The MOTION PASSED (10-1).
CS SB 215 (FIN) am (efd fld) was HELD in Committee for
further consideration.
ADJOURNMENT
The meeting adjourned at 5:10 P.M.
11
HOUSE FINANCE COMMITTEE
May 4, 1994
1:50 P.M.
TAPE HFC 94 - 156, Side 2, #000 - end.
TAPE HFC 94 - 157, Side 1, #000 - end.
TAPE HFC 94 - 157, Side 2, #000 - end.
TAPE HFC 94 - 158, Side 1, #000 - #675.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:50 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Representative David Finkelstein; Representative John
Davies; Representative Jeanette James; Senator Fred Zharoff;
Richard Pegues, Director, Administrative Services Division,
Department of Law; James Baldwin, Assistant Attorney
General, General Civil Division, Department of Law; Wendy
Redman, Vice President for University Relations, University
of Alaska; Nancy Slagle, Director, Division of Budget
Review, Office of Management and Budget; Bruce Geraghty,
Deputy Commissioner, Department of Community and Regional
Affairs; Bob Poe, Director, Division of Administrative
Services, Department of Environmental Conservation; Ginny
Fay, Prince William Sound Regional Citizens Advisory
Council, Juneau; Jay Hogan, Staff, Representative Ron
Larson; Bryce Edgmon, Staff, Senator George Jacko; Greg
Winegar, Manager, Juneau Lending Branch, Division of
Investments, Department of Commerce & Economic Development;
Russel Heath, Executive Director, Alaska Environmental
Lobby, Juneau.
SUMMARY
HB 455 An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date.
HB 455 was HELD in Committee for further
12
consideration.
SB 92 An Act relating to an advisory vote during
regional educational attendance area school board
elections; and providing for an effective date.
CS SB 92 (CRA) efd am was reported out of
Committee with a "do pass" recommendation and a
fiscal note by the Office of the Lt. Governor
dated 3/24/94 and a zero fiscal note by the
Department of Education dated 3/24/94.
SB 132 An Act relating to loans for the purchase of
individual fishery quota shares.
CS SB 132 (RES) am was reported out of Committee
with "no recommendations" and with a fiscal note
by the Department of Commerce and Economic
Development dated 2/04/94 and a Letter of Intent
provided by the House Resources Committee.
SB 215 An Act relating to and redesignating the oil and
hazardous substance release response fund and to
its use in the event of a disaster emergency;
repealing the authority in law by which marine
highway vessels may be designed and constructed to
aid in oil and hazardous substance spill cleanup
in state marine water using money in the oil and
hazardous substance release response fund;
amending requirements relating to the revision of
state and regional master prevention and
contingency plans; altering requirements
applicable to liens for recovery of state
expenditures related to oil or hazardous
substances; amending the authority to contract to
provide personnel to respond to a release or
threatened release of oil or a hazardous substance
and to contract to conduct spill related research;
reassigning responsibility for the oil and
hazardous substance response corps and for the
emergency response depots to the Department of
Environmental Conservation, and for the operation
of the state emergency response commission and its
attendant responsibilities for the local emergency
planning commissions to the Department of Military
and Veterans' Affairs; and modifying definitions
of terms relating to the preceding provisions;
terminating the nickel-per-barrel oil conservation
surcharge; levying and collecting two new oil
surcharges; and providing for the suspension and
reimposition of one of the new surcharges; and
providing for an effective date.
13
CS SB 215 (FIN)am (efd fld) was HELD in Committee
for further consideration.
HOUSE BILL NO. 455
"An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date."
Representative Brown MOVED TO WITHDRAW the pending motion on
Amendment #16 - the Department of Transportation and Public
Facilities' request for the road connecting the Seward
Highway and the Port of Whittier. There being NO OBJECTION,
it was withdrawn.
REPRESENTATIVE JEANNETTE JAMES spoke in support of Amendment
earnings of the Alaska Science and Technology endowment to
the University of Alaska, Fairbanks, agricultural and
forestry experiment station for the virus-free seed potato
project.
Representative Foster MOVED to adopt Amendment #1. There
being NO OBJECTION, it was adopted.
RICHARD PEGUES, DIRECTOR, ADMINISTRATIVE SERVICES DIVISION,
DEPARTMENT OF LAW, spoke in support of Amendment #2 which
would provide the sum of $100 thousand dollars from the
general fund to the Department of Law for attorney fees
related to Weiss versus the State of Alaska for the fiscal
year ending June 30, 1994.
Co-Chair Larson MOVED to adopt Amendment #2. There being NO
OBJECTION, it was adopted.
JAMES BALDWIN, ASSISTANT ATTORNEY GENERAL, GENERAL CIVIL
DIVISION, DEPARTMENT OF LAW, spoke in support of Amendment
appropriated to the Department of Law for costs relating to
legal proceedings involving oil and gas revenue due or paid
to the State or state title to oil and gas land for the
fiscal year ending June 30, 1995.
Co-Chair Larson MOVED to adopt Amendment #3. Co-Chair
MacLean OBJECTED suggesting that the Department of Law
should return each year to request additional funding.
Representative Brown spoke in support of Amendment #3
declaring that funding the amendment would indicate
legislative support to the Department's effort.
A roll call vote was taken on the MOTION.
14
IN FAVOR: Navarre, Brown, Foster, Grussendorf,
Hoffman, Larson.
OPPOSED: Parnell, Therriault, Hanley, Martin,
MacLean.
The MOTION PASSED (6-5).
Representative Brown MOVED to adopt Amendment #4, a
recommendation of the Alaska Judicial Council as instructed
by the Legislature in order to implement a plan for
integration of Alaska's criminal justice computer system.
She added that information systems within each department
warrant major work. The requested funding would cover costs
for preparation of a system within the Department of
Corrections and the Department of Law. Representative
Parnell understood that the Department of Public Safety
currently was working on coordinating a statewide plan. Co-
Chair MacLean OBJECTED to adopting Amendment #4.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre.
OPPOSED: Parnell, Therriault, Foster, Martin,
MacLean, Larson.
Representative Hanley was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment #5.
REPRESENTATIVE JOHN DAVIES explained the $3 million dollars
request would provide for an appropriation from the general
fund to the University of Alaska for the completion of the
Natural Sciences Classroom building in Fairbanks.
Representative Navarre MOVED TO AMEND Amendment #5 by
deleting "Natural Sciences" and "Fairbanks" and inserting
"Kenai". He expressed discontent with continual capital
improvement requests by the University for campuses in
Fairbanks, Anchorage and Juneau. Representative Davies
stated he would not support the amended language as
requested by Representative Navarre. Representative Navarre
WITHDREW THE MOTION to amend. There being NO OBJECTION, the
amended language was withdrawn.
Co-Chair MacLean OBJECTED to adopting Amendment #5 pointing
out that no construction money had been allocated to schools
K-12 this year.
Representative Davies stressed that the proposed request has
15
been a priority project of the University for twenty years.
The project is currently under construction and nearing
completion and that without the appropriation the building
would be closed. The University would then be forced to
spend $500 thousand dollars to just maintain the building
with no students. He added that the initial construction
costs had been deliberately under-funded and that the
Legislature knew at that time that there would be additional
financial need to finish construction. He emphasized that
each year the project is delayed will waste the State money
to maintain an empty building.
(Tape Change, HFC 94-157, Side 1).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Brown, Grussendorf, Hoffman.
OPPOSED: Foster, Martin, Navarre, Parnell,
Therriault, Larson, MacLean.
Representative Hanley was not present for the vote.
The MOTION FAILED (3-7).
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, explained
Amendment #6, a request for a supplemental appropriation
increase from the Department of Law to pay a FY94 judgments.
She added that the $19,832 increase was created by one new
judgement received since the Department's last request which
was submitted on April 30, 1994.
Representative Brown MOVED to adopt Amendment #6 explaining
that judgments are the State's obligation. Co-Chair MacLean
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Martin,
Navarre, Parnell.
OPPOSED: Therriault, Foster, Larson, MacLean.
Representative Hanley was not present for the vote.
The MOTION PASSED (6-4).
Co-Chair Larson MOVED that the lapse date for the Sitka
School District and the appropriation for seed potatoes be
extended until June 30, 1995. There being NO OBJECTIONS, it
was adopted.
16
Reappropriation Budget
BRUCE GERAGHTY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY
AND REGIONAL AFFAIRS, requested that the Committee extend
the Department's lapse on last years appropriations to June
30, 1995.
Co-Chair MacLean MOVED to adopt Amendment #1, which would
state "the unexpended and unobligated balance of the
appropriation made in Sec. 6, Ch.19, SLA1993, Page 4, Line
22 [Operating costs for the Department of Community and
Regional Affairs to carry out its power and duties under
AS42.45 and AS44.47.050] and lapses into the general fund
June 30, 1995". Representative Navarre OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hoffman, MacLean,
Larson.
OPPOSED: Parnell, Therriault, Brown, Hanley,
Martin, Navarre.
The MOTION FAILED (5-6).
Representative Brown WITHDREW Amendment #4. There being NO
OBJECTION, it was so ordered.
Co-Chair MacLean MOVED to adopt Amendment #3 which would
provide funding for the Cambridge Way/Tudor Road traffic
signal and Cambridge Way improvements. There being NO
OBJECTIONS, Amendment #3 was adopted.
Co-Chair MacLean MOVED to adopt Amendment #4 which would
provide funding for the Municipality of Anchorage -
signalization at 36th Avenue and Cottonwood Street and
Locarno Street in the amount of $214 thousand dollars.
There being NO OBJECTIONS, it was adopted.
HB 455 was HELD in Committee for further consideration.
SENATE BILL 92
"An Act relating to an advisory vote during regional
educational attendance area school board elections; and
providing for an effective date."
SENATOR FRED ZHAROFF stated that SB 92 would add a provision
whereby communities in REAA school areas would be able to
voice their positions on education via an advisory vote on
the regular school ballot. He pointed out that REAA schools
are spread over a wide area, and that it is often difficult
for members of those communities to attend board meetings in
17
order to make their feelings known. The bill would allow
the school board to adopt a resolution requesting that the
advisory question be on the next ballot. He concluded that
the Department of Education supports the legislation.
Representative Hanley MOVED to report CS SB 92 (CRA)(efd am)
out of Committee with individual recommendations and with
the accompanying fiscal notes. There being NO OBJECTIONS,
it was so ordered.
CS SB 92 (CRA)(efd am) out of Committee with a "do pass"
recommendation and with a fiscal note by the Office of the
Governor dated 3/24/94 and a zero fiscal note by the
Department of Education dated 3/24/94.
SENATE BILL 132
"An Act relating to loans for the purchase of
individual fishery quota shares."
BRYCE EDGMON, STAFF, SENATOR GEORGE JACKO, explained that CS
SB 132 would expand the Commercial Fisheries Revolving Loan
Fund Program to allow Alaskan fishermen to obtain loans to
purchase Individual Fisheries Quotas (IFQs). The Commercial
Fisheries Revolving Loan Fund Program would service the debt
to purchase limited entry permits, purchase or upgrade
vessels, and purchase fisheries related gear.
Co-Chair MacLean MOVED to report CS SB 132 (RES) am out of
Committee with individual recommendations and with the
accompanying fiscal notes. She explained that the IFQs are
transferrable, which creates a fear that fishermen from out
of state will purchase the Alaskan fishing permits. The
Division of Investments would provide loan money through the
Revolving Loan Fund, whereas Alaskan commercial banks are
reluctant to help Alaskan fishermen who do not have
sufficient collateral. The legislation would keep Alaskan
fishermen in business in Alaskan waters.
Representative Brown asked the total amount of money which
the State would be distributing. Mr. Edgmon replied that $5
million dollars would be loaned in FY95 and then between $4
and $5 million dollars appropriated in FY96. He pointed out
that the qualification requirements are stringent. The
Division of Investments does have a regulation priority
listing.
Representative Brown deliberated on the different loan
funding resources available in the State. She spoke against
providing commercial opportunity to fishmen over another
class of requestors. Mr. Edgmon responded that when the
program was established, it was the intent of the State to
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keep as many limited entry permits in residence ownership.
The loan program was established in order to offer that
arrangement to as many fishermen as possible. The program
allows resident fishermen to compete with nonresident
fishermen who have better access to capital.
(Tape Change, HFC 94-157, Side 2).
Representative Grussendorf commented that the IFQ's would
provide collateral for the small fisherman. The program
would keep the limited entry permits in the State.
Representative Hoffman added that the fishing industry is a
renewable resource and will continue to provide jobs to many
small rural areas within Alaska.
GREG WINEGAR, MANAGER, JUNEAU LENDING BRANCH, DIVISION OF
INVESTMENTS, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, responded to Representative Navarre's questions
regarding the loan requirements for State resident's. He
advised that the residency requirement was the same for all
eligibility requirements, pointing out that law states in
Section #A that a person would have to actively participate
for the past five years which would have to include the
preceding season. The current legislation would change that
to indicate participation for two of the past five years and
that it would be necessary to include the preceding season.
The borrowing interpretation would be more liberal than that
of the past.
There being NO OBJECTIONS, to reporting the bill from
Committee, it was so ordered. Representative Foster MOVED
to adopt the House Resources Committee Letter of Intent.
There being NO OBJECTIONS, it was so ordered.
CS SB 132 (RES) am was reported out of Committee with "no
recommendations", with the House Resources Committee Letter
of Intent and with a fiscal note by the Department of
Commerce and Economic Development dated 2/04/94.
SENATE BILL 215
"An Act relating to and redesignating the oil and
hazardous substance release response fund and to its
use in the event of a disaster emergency; repealing the
authority in law by which marine highway vessels may be
designed and constructed to aid in oil and hazardous
substance spill cleanup in state marine water using
money in the oil and hazardous substance release
response fund; amending requirements relating to the
revision of state and regional master prevention and
contingency plans; altering requirements applicable to
liens for recovery of state expenditures related to oil
or hazardous substances; amending the authority to
19
contract to provide personnel to respond to a release
or threatened release of oil or a hazardous substance
and to contract to conduct spill related research;
reassigning responsibility for the oil and hazardous
substance response corps and for the emergency response
depots to the Department of Environmental Conservation,
and for the operation of the state emergency response
commission and its attendant responsibilities for the
local emergency planning commissions to the Department
of Military and Veterans' Affairs; and modifying
definitions of terms relating to the preceding
provisions; terminating the nickel-per-barrel oil
conservation surcharge; levying and collecting two new
oil surcharges; and providing for the suspension and
reimposition of one of the new surcharges; and
providing for an effective date."
Representative Therriault MOVED to adopt 8-LS1107\T,
Chenoweth, 5/02/94, as the version before the Committee.
Co-Chair MacLean OBJECTED stating that the Governor's Office
would not support that version. Representative Therriault
advised that he would be offering two amendments to the
draft which would remedy the concerns of the Administration.
He distributed and explained a spread sheet "Summary of
Changes - CSSB 215 (FIN) am, HCS CS SB 215 (RES), HCS CS SB
215 (STA), and the proposed work draft". [Copy on file].
BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, addressed concerns
of the Department resulting from the work draft. He pointed
out that there are a number of changes made to that version
which warrant concern. He clarified that there exists only
one situation in which DEC could spend money from the
current response fund or the future response account within
the response fund. This would occur when a spill is
eminent. Over the entire history of that fund, only $1.9
million dollars of the total $122 million dollars has been
spent. The remaining portion of the fund was appropriated
by the Legislature.
The original intention of the prevention account was to
provide funds to DEC and other state agencies to both
prevent spills and to be better prepared to respond to
spills. The response account, as passed by the Senate and
the House Resources Committee, is intended to deal with all
spills, including the small spills. Mr. Poe pointed out
that most of the spills which DEC responds to are well under
2,500 barrels. Under the bills passed from the Senate and
House Resources Committees, there is no threshold used to
determine when the response money could be used in order to
respond to a spill. He added that the work draft version
20
would establish an artificial threshold which would be of
great concern to the Department.
Mr. Poe continued that the work draft would establish a
special account in the prevention account which would be
used for the smaller spills. He explained that the problem
is that a large fund would be necessary in order to address
those times when a responsible party creates a spill. The
party would then be forced to clean it up appropriately or
the fund money would be used for litigation. Mr. Poe
stressed that the State does not know what future spills
will occur.
The work draft also would require that the Governor be
informed of a spill within 72 hours of the spill at which
time he would provide specific instruction regarding action
to take to address that spill. Mr. Poe emphasized that
requiring the Governor's approval to act could be harmful
timing for the State. Representative Therriault interjected
that a proposed amendment would address that concern.
(Tape Change, HFC 94-158, Side 1).
GINNY FAY, PRINCE WILLIAM SOUND REGIONAL CITIZENS ADVISORY
COUNCIL, JUNEAU, briefed the Committee on the development of
the legislation. The bill was originally drafted from a
research analysis completed in 1992, which erroneously
stated that the response fund was empty. At that time,
there remained $27 million dollars in that account. Ms. Fay
emphasized that the bill gained momentum based on incorrect
information.
She added that the bill would not protect the coastal
communities nor public interest. SB 215 is an industry
bill, emphasizing that based on a Department of Revenue's
fiscal note, the legislation would be worth $50 million
dollars over the next six years in lower surcharge payments.
Ms. Fay concluded that the legislation as passed through the
Senate and the House Resources Committees continued to allow
the response account to be used for spill response. The
proposed work draft would make the prevention account also
serve for the response fund and would also lower the
surcharge payment from five cents to three cents. She
stressed that the work draft was unacceptable.
RUSSEL HEATH, EXECUTIVE DIRECTOR, ALASKA ENVIRONMENTAL
LOBBY, JUNEAU, encouraged the Committee to adopt the House
Resources version of the bill. He pointed out that the
Resources committee substitute places the entire $37 million
dollars into the response account. The Alaska Environmental
21
Lobby (AEL) would recommend that balance to be split 60/40
percent between prevention and response accounts. He noted
concern in adding the underground storage tanks to the
prevention account. He thought that action would encourage
money to be taken from the prevention account program and
would drain money from other necessary prevention accounts.
REPRESENTATIVE DAVID FINKELSTEIN reiterated that the tax
levied should be used for the concerns which created that
tax. He spoke against splitting the fund. Currently enough
money does not exist to address the needs of the original
program, whereas, the proposed legislation would add more
obligations from that fund. Representative Finkelstein
encouraged implementing an increased gas tax in order to
make the programs balance.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Martin, Parnell, Therriault,
Foster, Larson.
OPPOSED: Hoffman, Navarre, Brown, Grussendorf,
MacLean.
The MOTION PASSED (6-5).
Representative Therriault MOVED to adopt Amendment #1 which
would eliminate the 72 hour notice and approval requirement.
There being NO OBJECTION, it was adopted.
Representative Therriault MOVED to adopt Amendment #2 which
would delete "threatened release". Representative Martin
OBJECTED.
Mr. Poe noted that the Department would support Amendment
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Parnell, Therriault,
Brown, Foster, Grussendorf, Hanley,
Larson, MacLean.
OPPOSED: Martin.
The MOTION PASSED (10-1).
CS SB 215 (FIN) am (efd fld) was HELD in Committee for
further consideration.
ADJOURNMENT
The meeting adjourned at 5:10 P.M.
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