03/23/2000 04:11 PM Senate FIN

                          MINUTES                                                                                             
           HOUSE AND SENATE CONFERENCE COMMITTEE                                                                              
                        FOR SB 250                                                                                            
                      March 23, 2000                                                                                          
                          4:11 PM                                                                                             
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
CC-00 #1, Side A                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Sean Parnell convened the meeting at approximately                                                                     
4:11 PM                                                                                                                         
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Chair Sean Parnell                                                                                                              
Vice-Chair Eldon Mulder                                                                                                         
Senator John Torgerson                                                                                                          
Representative Gene Therriault                                                                                                  
Senator Al Adams                                                                                                                
Representative John Davies                                                                                                      
                                                                                                                                
Also Attending: DAVID TEAL, Director, Division of                                                                             
Legislative Finance                                                                                                             
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 250-SUPPLEMENTAL APPROPRIATIONS                                                                                              
                                                                                                                                
The Committee adopted a conference committee report.                                                                            
                                                                                                                                
     HOUSE COMMITTEE SUBSTITUTE FOR COMMITTEE SUBSTITUTE                                                                        
     FOR SENATE BILL NO. 250(FIN)                                                                                               
                                                                                                                                
     "An  Act making  supplemental appropriations;  amending                                                                    
     appropriations; making  an appropriation  to capitalize                                                                    
     a fund;  making a  reappropriation under art.  IX, sec.                                                                    
     17(c), Constitution  of the State  of Alaska,  from the                                                                    
     constitutional budget  reserve fund; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
                                                                                                                                
Chair Parnell reviewed motions the proposed conference                                                                          
committee motions. [See attached motions sheet.]                                                                                
                                                                                                                                
Vice-Chair  Mulder  moved  to  adopt  all  of  the  proposed                                                                    
conference committee motions as  described by Chair Parnell.                                                                    
Senator Adams objected.                                                                                                         
                                                                                                                                
Senator Adams  spoke to  his objection  saying he  hoped the                                                                    
amount  approved by  the House  of Representatives  would be                                                                    
adopted   on  Item   #9,  thus   funding   the  Power   Cost                                                                    
Equalization  (PCE) program  through the  end of  the fiscal                                                                    
year.                                                                                                                           
                                                                                                                                
Representative Davies  added that  a commitment was  made to                                                                    
fund this  program through  the end of  the year.  He didn't                                                                    
understand that,  if this  was the  intent, why  the program                                                                    
only funded through May 15, 2000.                                                                                               
                                                                                                                                
Vice-Chair Mulder stated  that if PCE were  not endowed with                                                                    
NPRA funds, the  issue would not have to  be addressed three                                                                    
times on one fiscal year.                                                                                                       
                                                                                                                                
Senator Adams  responded and suggested using  money from the                                                                    
annual  Alaska Industrial  Development and  Export Authority                                                                    
(AIDEA) dividend funds.                                                                                                         
                                                                                                                                
Co-Chair  Parnell pointed  out  that everyone  at the  table                                                                    
hoped for  a long-term solution  to the issue. He  said that                                                                    
by simply  funding the entire  program now,  the discussions                                                                    
about the future funding would  go away and a solution would                                                                    
not be found.                                                                                                                   
                                                                                                                                
Representative  Davies  disagreed  that  fully  funding  the                                                                    
program  through  FY  00   would  end  discussions,  because                                                                    
funding for FY 01 was still being considered.                                                                                   
                                                                                                                                
Co-Chair  Parnell countered  that  the intent  was that  PCE                                                                    
would be  fully funded with  NPRA funds, which would  be the                                                                    
long-term solution.  His goal was  to eliminate the  need to                                                                    
look  for  funding each  year  and  to have  an  efficiently                                                                    
operated energy program.                                                                                                        
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN  FAVOR:  Representative  Therriault,  Senator  Torgerson,                                                                    
Vice-Chair Mulder and Co-Chair Parnell                                                                                          
                                                                                                                                
OPPOSED: Representative Davies and Senator Adams                                                                                
                                                                                                                                
The motion PASSED (4-2)                                                                                                         
                                                                                                                                
The conference committee report was ADOPTED.                                                                                    
ADJOURNED                                                                                                                   
                                                                                                                                
Chair Parnell adjourned the meeting at 4:18 PM.