Legislature(2005 - 2006)
03/22/2005 08:34 AM Senate 098
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
MINUTES
CONFERENCE COMMITTEE
SB 98 - FY 05 SUPPLEMENTAL APPROP
March 22, 2005
8:34 a.m.
CALL TO ORDER
Chair Wilken convened the meeting at approximately 8:34:20 AM.
PRESENT
Senator Gary Wilken, Chair
Representative Mike Chenault, Vice-Chair
Senator Lyda Green
Representative Kevin Meyer
Senator Lyman Hoffman
Representative Eric Croft
Also Attending: DAVID TEAL, Director, Division of Legislative
Finance
Attending via Teleconference: There were no teleconference
participants
SUMMARY INFORMATION
CS FOR SENATE BILL NO. 98(FIN) am
"An Act making supplemental appropriations, capital
appropriations, and other appropriations; amending
appropriations; making appropriations 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 CS FOR CS FOR SENATE BILL NO. 98(FIN) am H
"An Act making supplemental appropriations, capital
appropriations, and other appropriations; amending
appropriations; making appropriations 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."
The Conference Committee utilized a spreadsheet titled, "Conference
Committee Worksheet for SB 98" which outlines each section of the
House of Representatives and Senate versions of the legislation
[copy on file].
Chair Wilken noted a letter requesting the Conference Committee be
granted limited powers from the president of the Senate and the
speaker of the House of Representatives. He requested members sign
this letter for transmittal to the appropriate bodies.
Representative Chenault moved for adoption of the House of
Representatives version of all sections of the bill with the
exception of Items 2, 3 and 6.
Chair Wilken objected for discussion purposes.
Senator Hoffman requested an explanation why the specific items
were excluded.
Chair Wilken replied that Section 2 (a) of the bills relate to
rural energy fuel grants. He informed that the Conference Committee
would propose adoption of the House of Representative language with
an amendment providing that the grants could not be expended for
utilities or insurance. The Conference Committee would then retain
the House of Representatives language of Item 3, which also relates
to Section 2(a) of the bills.
Senator Hoffman asked for an explanation of Item 6.
Chair Wilken explained that the House of Representatives reduced
the appropriation to the Probation and Parole Results Delivery Unit
(BRU), Director's Office Probation Region I component by $450,000
general fund. It was determined that the Senate proposed reduction
of $65,000 was appropriate.
Senator Green clarified that the proposed action on Item 6 would
not require limited powers of the Conference Committee.
Chair Wilken affirmed.
Senator Hoffman, referencing Item 2, asked the reason to prohibit
the use of these funds for utilities and insurance expenses. He
understood the majority of the funding would be utilized for fuel
and the portion for utilities and insurance would be minimal.
Chair Wilken relayed the "predominant opinion" that the inclusion
of utility and insurance as an authorized use of these funds would
change the appropriation from a grant for fuel costs to a municipal
revenue sharing program. Payment for fuel expenses has support, but
additional authorized expenditures is not supported.
Senator Hoffman asked the reason the House of Representatives
passed language that provided authorization for utility and
insurance expenses.
Representative Chenault replied that the matter was "argued both
ways", although he supported limiting the authorization to fuel
costs. This was the intent of the appropriation.
Representative Croft countered that the Representatives concluded
that the increased fuel costs affected a variety of expenses. Funds
were diverted from other obligations to purchase the needed fuel.
He gave an analogy of a parent paying unexpected tuition increases
to allow their child to attend school, and addressing the resulting
shortfall to the family grocery budget afterwards. If funds later
became available but were restricted to tuition payment, the
problem of providing food would not be addressed. He requested
additional discussion on the matter of the Conference Committee's
request for limited free powers, suggesting another solution could
be agreed upon.
Chair Wilken understood the appropriation could be used to
reimburse payments already remitted. Therefore fuel purchases made
between July 1, 2004 and through the remainder of the fiscal year
are eligible.
Representative Croft suggested the simpler method would be to
appropriate the funding without the limitations.
Co-Chair Wilken removed his objection and the House of
Representatives version of Items 1, 4 through 5, and 7 through 20
were ADOPTED.
Representative Chenault moved to adopt the Senate version of Item
6.
Chair Wilken objected to point out that an explanation for this
action had been given earlier in the meeting. He removed his
objection.
Without further objection the Senate version of Item 6 was ADOPTED.
Representative Chenault offered a motion that the Conference
Committee request free powers to address Section 2(a) of the bill,
listed as Items 2 and 3 on the spreadsheet.
Chair Wilken objected to explain that the proposed changes to the
language of Section 2(a) is different than that included in either
the House of Representatives or Senate versions of the bill and
would thus require the authorization of free powers. He noted the
letter making this request has been signed by all members and would
be transmitted to the president of the Senate and the speaker of
the House of Representatives.
There was no objection and the motion to request free powers was
ADOPTED.
Representative Meyer clarified that Item 3 would be addressed once
the Conference Committee receives free powers.
AT EASE 8:45:29 AM/12:13:25 PM
The request for limited free powers was submitted to the president
of the Senate and the speaker of the House of Representatives and
these powers were granted during sessions of each body. These
sessions were held during the recess of this meeting.
Co-Chair Wilken explained a proposed amendment to the House of
Representatives language of Section 2(a) of the bills. This
amendment would delete "utilities or insurance" as allowable
expenditures of the grants to the small municipality energy
assistance program and limit expenditure to fuel purchases. The
amended language on page 2 lines 5 through 17 of the House of
Representatives version, 24-GS1133\S.A, would read as follows.
Sec. 2. DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT. (a) The sum of $6,450,000 is appropriated from
the general fund to the Department of Commerce, Community, and
Economic Development, division of community advocacy, for
grants from the small municipality energy assistance program,
for the fiscal year ending June 30, 2005, to the following
cities and boroughs in the amounts stated. The grant awarded
to each city or borough must be first used to repay any
indebtedness of the city or borough to the bulk fuel revolving
loan fund (AS 42.45.250). The amount of a grant remaining
after repayment of any indebtedness of the city or borough to
the bulk fuel revolving loan fund may be used by the city or
borough only for the purchase of fuel. The amount of the grant
awarded to a city or borough is based upon 2003 population,
with cities and boroughs with up to 99 residents receiving
$22,395.83, cities and boroughs with 100 - 600 residents
receiving $44,791.67, and cities and boroughs with 601 - 2,499
residents receiving approximately $67,187.
Representative Chenault offered a motion to insert "only" and
delete "utilities and insurance" from the sentence beginning "The
amount of a grant remaining…" on lines 11 through 14.
Senator Hoffman objected.
AT EASE 12:14:48 PM / 12:16:39 PM
Co-Chair Wilken clarified that the motion is to amend the House of
Representatives language of Section 2(a) and adopt this language.
Representative Croft questioned the need for limited free powers
authority for the conference committee. He stated that the language
of the amendment is identical to that of the Senate version of the
bill.
DAVID TEAL, Director, Division of Legislative Finance, provided an
explanation. [Note: witness spoke out of range of audio recording
equipment and testimony was not received.]
Representative Meyer asked if the changes made to Item 2 would
result in opposition to the House of Representative language for
Item 3.
Co-Chair Wilken expressed intent to address Item 2.
Representative Meyer informed that the provisions of Item 3 are
more important to the House of Representatives than the provisions
of Item 2.
Co-Chair Wilken did not anticipate that either item would fail to
be adopted.
A roll call was taken on the motion.
IN FAVOR: Representative Meyer, Senator Green, Representative
Chenault, Chair Wilken
OPPOSED: Representative Croft, Senator Hoffman
The motion PASSED (4-2)
The House of Representatives language for Item 2 was amended and
ADOPTED.
Representative Chenault offered a motion to adopt the House of
Representatives language for Item 3. This language of Section 2(a)
of the bills, relates to the distribution of funds for the
appropriation to communities for increased fuel costs.
Co-Chair Wilken noted the House of Representatives language
provides for the same appropriation amount as adopted by the
Senate, but with a different allocation of the funding.
Without objection the House of Representatives language for Item 3
was ADOPTED.
Co-Chair Wilken stated for the record that the grants provided in
Items 2 and 3 could be utilized for past and future fuel purchases
made during FY 05.
Co-Chair Wilken clarified action taken by the Conference Committee
in adopting the House of Representatives version of Items 18
through 22: "These lapse and effective date clauses conform to the
House versions of other sections adopted by the committee,
including funding for labor agreements and education."
Representative Chenault offered a motion to report CC SB 98, 24-
GS1133\X, from Committee.
Representative Croft clarified that the committee substitute,
Version "X" reflects only those changes made in the Conference
Committee.
Chair Wilken affirmed.
There was no objection and CC SB 98 MOVED from the Conference
Committee.
ADJOURNMENT
Chair Wilken adjourned the meeting at 12:24 PM
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