Legislature(2003 - 2004)
03/05/2003 09:02 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 05, 2003
9:02 AM
TAPES
SFC-03 # 15, Side A
SFC 03 # 15, Side B
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:02 AM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Lyda Green, Co-Chair
Senator Con Bunde, Vice-Chair
Senator Ben Stevens
Senator Lyman Hoffman
Senator Donny Olson
Senator Robin Taylor
Also Attending: REPRESENTATIVE NANCY DALHSTROM; KIMBERLY HANGER,
Staff to Representative Nancy Dahlstrom; DAVID ANTHONY MURROW,
Guest Page; COL. CRAIG CAMPBELL, Adjutant General/Commissioner,
Department of Military and Veterans Affairs; JOHN CRAMER, Director,
Division of Administrative Services, Department of Military and
Veterans Affairs; TOM LAWSON, Director, Division of Administrative
Services, Department of Community and Economic Development; EDDY
JEANS, Manager, School Finance and Facilities Section, Division of
Education Support Services, Department of Education and Early
Development; NICO BUS, Administrative Services Manager, Division of
Support Services, Department of Natural Resources; MARY SIROKY,
Legislative Liaison, Department of Environmental Conservation; TOM
WRIGHT, Staff to Representative John Harris; KIM DUKE, Executive
Director, Arctic Power
Attending via Teleconference: From an Offnet Site: AL ADAMS,
Volunteer and Co-chair of Arctic Power
SUMMARY INFORMATION
SB 20-BOARD OF MARINE PILOTS
A committee substitute was adopted, and the bill reported from
Committee.
HB 74-EXTEND BOARD OF NURSING
The Committee heard testimony from the sponsor and reported the
bill from Committee.
SB 75-SUPPLEMENTAL APPROPRIATIONS: FAST TRACK
SB 76-SUPPLEMENTAL APPROPRIATIONS
The Committee heard testimony from the Department of Military and
Veterans Affairs, the Department of Community and Economic
Development, the Department of Natural Resources, and the
Department of Education and Early Development. The bills were held
in Committee.
HB 101-APPROP: GRANT TO ARCTIC POWER FOR ANWR
The Committee heard testimony from the sponsor and Arctic Power.
The bill was held in Committee.
[NOTE: The recording quality of this tape is poor.]
SENATE BILL NO. 20
"An Act extending the termination date of the Board of Marine
Pilots; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken informed the Committee that this legislation would:
extend the sunset date for the Board of Marine Pilots; maintain the
use of marine pilots on inland and coastal waterways; regulate
licensing and training of marine pilots; and regulate fees. He
conveyed that the Division of Legislative Audit recommends that the
Board be extended to June 30, 2007.
Co-chair Wilken informed that the proposed committee substitute
requires drug testing of marine pilots, extension of the Board to
June 30, 2007, and exempts Canadian Navy and Coast Guard vessels
from the marine pilot requirement.
Co-Chair Green moved to adopt CS SB 20, 23-LS0274\I as a working
draft.
There being no objections, the Committee Substitute was ADOPTED as
a working draft.
Senator Olson asked whether language relating to vessel length,
specifically yachts, is included in the committee substitute.
Co-Chair Wilken clarified that, subsequent to the first Committee
hearing on this bill, it was determined that yacht owners should
meet with the US Coast Guard to address concerns regarding such
issues as the requirement for marine pilots to be onboard yachts
exceeding a specified length. He stated that the issue would be
addressed in separate legislation provided that yacht owners and
the US Coast Guard effectively address the issue.
Senator Olson remarked that this issue must be resolved.
Co-chair Wilken asserted that melding the Coast Guard's concerns
with the potential for economic growth resulting from increased
yacht traffic in the State is a "compelling" situation. However, he
reemphasized that yacht owners must address the issue with the
Coast Guard.
Co-Chair Green moved to report the bill from Committee with
individual recommendations and accompanying fiscal note.
There being no objection, CS for SB 20 (FIN) REPORTED from
Committee with a previous $111,500 fiscal note dated February
5,2003 from the Department of Community and Economic Development.
CS FOR HOUSE BILL NO. 74(FIN)(efd add)
"An Act extending the termination date of the Board of
Nursing; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken explained that this legislation would extend the
Board of Nursing for eight years, as recommended by the Division of
Legislative Audit.
REPRESENTATIVE NANCY DALHSTROM affirmed that this legislation would
extend the Board of Nursing until June 30, 2011. She mentioned that
the representation on the Board is defined in Alaska statutes and
that the Governor appoints Board members. She explained that such
things as conducting investigations regarding complaints against
nurses and the establishment of minimum education and work
requirements for nurses are duties of the Board. She stated that
the "impeccable" record of the Board and the cost of conducting an
audit warrant the length of the extension recommendation.
KIMBERLY HANGER, Staff to Representative Nancy Dahlstrom, informed
the Committee that the Division of Legislative Audit report dated
August 16, 2002 [copy on file] supports the extension of the Board.
She detailed the findings of the report.
Senator Olson asked whether the field of nurse practitioners has
representation on the Board.
Representative Dahlstrom responded in the negative.
Senator Bunde asked whether the Board has addressed the State's
nursing shortage situation.
Representative Dahlstrom answered that the Board is working with
other pertinent boards and organizations to address the situation.
Senator Hoffman inquired as to the status of Recommendation Number
Two as presented in the Audit Report.
Recommendation 2: The Board of Nursing should develop and
implement a self-evaluation monitoring checklist for
organizations operating approved certified nurse aide training
programs.
Ms. Hanger responded that in response to this recommendation, the
Board is currently holding meetings with the various organizations
that conduct training programs.
Co-Chair Green moved to report HB 74 from Committee with individual
recommendations and accompanying fiscal note.
There being no objection, CS HB 74 (FIN)(efd add) REPORTED from
Committee with a previous fiscal note, dated February 28, 2003, in
the amount of $712.7 from the Department of Community and Economic
Development.
AT EASE 9:13 AM / 9:15 AM
Co-Chair Green chaired the remainder of the meeting.
Senator B. Stevens introduced fifteen-year-old DAVID ANTHONY MURROW
as guest page. He informed the Committee that Master Murrow's
interests include travel, drama, and backpacking, and he continued
Master Murrow aspires to be involved in international relations,
politics and espionage. He additionally noted that Master Murrow
would be journeying to Mexico to participate in a yearlong Rotary
International Student Exchange Program.
SENATE BILL NO. 75
"An Act making supplemental and other appropriations; amending
appropriations; and providing for an effective date."
SENATE BILL NO. 76
"An Act making supplemental and other appropriations; amending
appropriations; making appropriations to capitalize funds; and
providing for an effective date."
This was the fifth hearing for these bills in the Senate Finance
Committee.
Co-chair Green announced that the Department of Military and
Veterans Affairs would continue their presentation begun, but not
concluded, at the March 3, 2003 meeting.
Department of Military and Veterans Affairs
SB 76
Section 11(a) and (b)
Department of Military and Veterans Affairs
Commissioner's Office
Structure change to move Commissioner's Office and Unallocated
Reduction components to National Guard BRU
JOHN CRAMER, Director, Division of Administrative Services,
Department of Military and Veterans Affairs stated that this
request would restructure the Department to provide the
Commissioner with "the latitude to work within the Department to
the extent" deemed necessary.
CRAIG CAMPBELL, Commissioner, Department of Military and Veterans
Affairs and Adjutant General, Alaska National Guard stated that
previous to his term as commissioner, the Commissioner's Office
operated within the National Guard Budget Review Unit (BRU);
however, he continued, the Legislature made the decision to remove
the Office of the Commissioner from the National Guard BRU and
establish a separate "and small" Commissioner's Office BRU. He
stated that re-establishing the Office of the Commissioner within
the National Guard BRU would provide the Commissioner with "more
latitude to manage the funds being entrusted" to him, specifically
to better coordinate Homeland Security measures and "better manage
the funding over the course of a year."
Senator Hoffman asked the importance of approving this request in
the supplemental request process rather than through a FY 04 budget
request.
Commissioner Campbell reiterated that approval of this request
would provide the opportunity to better manage current funding
allocations, specifically the funding necessary to sufficiently
develop and implement Homeland Security measures.
Senator Hoffman asked whether this request would transfer
additional Department funds to Homeland Security in FY 03.
Commissioner Campbell responded that approval of the request would
allow the Commissioner to utilize National Guard funds to develop
an overall operational plan to coordinate the National Guard's
existing Homeland Security responsibilities.
Co-chair Green asked whether the Department would continue this
restructuring alignment in FY 04.
Commissioner Campbell concurred that the FY 04 budget is being
developed in this manner.
SB 76
Section 11(c)
Military Youth Academy
Technical correction for Ch 130 SLA2002 (SB 345) fiscal note -
correct fund source amounts.
Co-Chair Green stated that this request regards a technical fund
source correction.
AT EASE 9:22 AM / 9:23 AM
Mr. Campbell noted that the backup material provides further
information regarding this request.
Co-Chair Green understood that this request is to correct an
inaccuracy that occurred during a conference committee meeting.
Mr. Campbell concurred and stated that the request would not
require additional funds.
Section 16(8)
Miscellaneous Claims and Stale-dated Warrants $580.88
$0.6 general funds
Mr. Cramer stated that this request entails two stale-dated items
totaling $580.88.
Department of Community and Economic Development
SB 76
Section 2(a)
Admin Services
Retroactive section to ratify the transfer of $51,000 from the
disaster relief fund back to the commercial fishing revolving
loan fund in response to recommendation 20 in the FY01
Statewide Single Audit prepared by Legislative Audit.
TOM LAWSON, Director, Division of Administrative Services,
Department of Community and Economic Development informed the
Committee that a 2001 Statewide fiscal audit [copy not provided]
conducted by the Division of Legislative Audit recommended that the
Department submit this request to authorization the return of the
unspent portion of monies to the Commercial Fish Fund from whence
it originated.
Co-Chair Green asked whether this request would be more appropriate
as a ratification.
Mr. Lawson voiced support for addressing the request as a
ratification rather than as a supplemental request.
Co-Chair Green announced that this request would be reclassified as
a ratification in the upcoming committee substitute.
SB 76
Section 2(b)
Capital
Section to change RPL 08-3-0104 for Rural Internet Access from
operating to capital
Mr. Lawson informed that this request would formalize the transfer
of a $7.5 million grant appropriation from the operating budget to
the capital budget to activate a Regulatory Commission of Alaska
(RCA) program authorized in FY 03.
Co-Chair Green clarified that this is a fund transfer.
Senator Taylor asked for further information about the RCA program.
Mr. Lawson replied that this program would provide for grants and
partnerships between internet carriers and public entities to
provide high speed Internet service to rural areas of the State.
Senator Hoffman asked the projected timeframe of the program.
Mr. Lawson responded that the program is proceeding slower than
anticipated; however, he stated, the federal grant application
process would be finalized this spring.
Co-Chair Green asked what occurs once the federal grant is
finalized.
Mr. Lawson explained that once the State/federal grant application
is finalized, the next step would be to distribute the grant
applications to eligible entities. He estimated that the
applications would be distributed in the spring; however, he
asserted that the program would not be completed by June 30, 2003.
Co-Chair Green stated therefore that the program funding would
continue into FY 04.
Mr. Lawson concurred.
SB 76
Section 2(C)
Insurance
Authority to receive and expend fees paid by licensees for
background checks. The Division of Insurance will then enter
into a contract (RSA) with Department of Public Safety who
performs the background checks.
$200.0 Receipt Supported Services
Mr. Lawson stated that this request results from a change in the
methodology of collecting fees for insurance industry applications
and background checks. He stated that the Department of Public
Safety requested this change because of the increase in background
checks being conducted as a result of the terrorist attacks on the
United States on September 11, 2001. He explained that, previously,
insurance applicants were required to submit two payments for
services: one to the Department of Public Safety for the background
check and one to the Department of Community and Economic
Development for the license; this change, he continued allows
applicants to remit a single payment for the entire fee to the
Department of Community and Economic Development. Therefore, he
concluded, the Department of Community and Economic Development
must receive authorization to transfer the $200,000 collected for
the Department of Public Safety's background checks.
Co-Chair Green announced that there would be a "correcting entry"
in the final committee substitute that would reduce the Department
of Public Safety budget by $100,000 to reflect the portion of the
fee the Department must pay to a third party for administering
background checks.
Senator Olson voiced concern that, as a result of the September 11,
2001 terrorist attacks and "other obstacles" presented to the
insurance industry, insurance companies might be deterred from
providing insurance coverage in Alaska. He asked whether the
Department has heard any such indications from the industry.
Mr. Lawson clarified that this request is not generated by an
increase in insurance fees, but rather reflects a change in the fee
process.
Co-Chair Green commented that were there any opposition to this
change, it has not been "publicly" voiced. She informed that State
regulations specify that anyone seeking to sell insurance in Alaska
must submit to a background check.
Senator Taylor asked for confirmation that every insurance agent in
the State is required to undergo a background check.
Co-Chair Green confirmed and stated that background checks have
been a requirement for many years.
Senator Taylor asserted that, while he accepts that attorneys are
required to undergo background checks, he is "incredulous" that
this requirement applies to the insurance industry.
Senator Bunde voiced that writing one check, rather than two, is
"slightly more user friendly" for the industry.
SB 76
Section 2(d)
International Trade
Authority to receive and expend registration receipts from the
Korea USA economic conference. The 2002 conference was held in
Korea; 2003 will be in Anchorage. Subsequent years'
conferences will be held in other western states.
$115.0 Statutory Designated Program Receipts
Mr. Lawson asked that this request be withdrawn from consideration
because the 2003 conference has been postponed.
SB 76
Section 2(e) and (f)
Alaska Science and Technology Foundation
Income is insufficient to fund appropriation due to stock
market declines. Fund source switch from income to endowment
and a reduction of $6,418.6 in the appropriation, leaving
authorization of $4.1m.
($6,418.6) Sci/Tech Endowment
Mr. Lawson informed the Committee that the Alaska Science and
Technology Foundation (ASTF) endowment revenues have declined due
to financial market conditions. He stated that, as a result, this
request seeks to reduce the authorization funding level and change
the funding source. He continued that this is an interim step as
the program is currently under review.
Senator Taylor verified that existing program obligations and
operating expenses amount to $4.1 million.
Mr. Lawson concurred.
Senator Taylor concluded that authorization of this request would
allow the program to operate through June 30, 2003.
Mr. Lawson agreed.
SB 76
Ratifications
Section 17(a)(1)(A)
AR 56381-02 (Delta Junction Economic Recovery)
$562.95 general funds
SB 76
Ratifications
Section 17(a)(1)(B)
AR 56385-02 (Rural Utility Mgt.)
$0.83 general funds
Mr. Lawson stated that this request involves federal grant program
expenses originating in 1987.
Department of Education and Early Development
SB 76
Section 5(a)
Schools for the Handicapped
Out of State Placement educational cost increase due to
increased number of clients and increased length of stay.
$366.8 general funds
EDDY JEANS, Manager, School Finance and Facilities Section,
Division of Education Support Services, Department of Education and
Early Development informed the Committee that this request is
generated by the additional cost of placing handicapped children in
out-of-State educational programs.
Co-Chair Green asked whether the program includes psychiatric and
disability treatment.
Mr. Jeans replied that these two categories are included in the
program.
Mr. Jeans stated that the Division of Family and Youth Services
(DFYS) administers this program that provides treatment for
children who are wards of the State. He explained that because the
State does not have the ability to teach these students, they are
provided treatment in out-of-State facilities. He continued that
the increased cost results from an increase in the number of
students in the program and an increase in the total number of days
at the facility.
Co-Chair Green asked whether these children qualify for Medicaid
coverage.
Mr. Jeans replied that, while Medicaid would provide for medical
expenses, these expenses result from educational needs.
Co-Chair Green asked whether the Department could identify the
reason for the increase in the number of youth being served in the
program.
Mr. Jeans stated that the reason is unknown.
Co-Chair Green suggested that the ability of private physicians to
enroll youth in the program through the auspice of the Denali
KidCare program might be a cause. She stated that this issue would
be addressed. She asked for verification that the increase in the
program is the result of an increase in the number of students and
their length of stay in the program.
Mr. Jeans concurred.
SB 76
Section 5(b)
Foundation
General fund reduction due to preliminary actuals for
foundation program that reconciles initial October student
count to the electronic data.
($6,728.8) general funds
Mr. Jeans stated that this surplus of funds in the School
Foundation Formula Fund account is the result of a lower than
expected final count of students in the public school system.
Co-Chair Green asked whether these funds would lapse at the end of
the fiscal year if they remained in the supplemental budget.
Mr. Jeans stated they would.
SB 76
Section 15(b) and (c)
Debt
Reduce debt retirement fund appropriation for school debt
reimbursement by amount of FY2002 cigarette tax carry forward
and increased tax collections.
($2,593.9) Debt RF
Increase School Fund appropriation for school debt
reimbursement by amount of FY2002 cigarette tax carry forward
and increased collections.
$2,593.9 School Fund
School construction reimbursement estimate has decreased from
56,378.4 to 52,536.0, a reduction of 3,842.4 needed to
capitalize the debt retirement fund. That amount plus the
2,593.9 debt retirement fund reduction above is the amount the
debt retirement fund is overcapitalized in FY03.
($10,278.7) Total Funds
($6,436.3) general funds
($3,842.4) Debt RF
Mr. Jeans stated that this request reflects a reduction in the debt
retirement fund as the result of a funding allocation overage as
well as the receipt of cigarette tax revenue allocated to the
Department in excess of projections.
Co-Chair Green clarified that these items offset each other.
Mr. Jeans clarified that the first entry reflects the overall
reduction in the debt retirement program and that the second entry
specifies the reduction in general funds needed to support the debt
retirement fund as the result of the transfer of excess cigarette
tax revenue received by the Department.
AT EASE 9:45 AM / 9:46 AM
SB 76
Section 16(3)
Admin Services
Miscellaneous Claims and Stale-dated Warrants $5,107.28
$5.1 general funds
Mr. Jeans stated that this request is the result of a late copier
billing.
Senator Hoffman asked whether the action specified in Section 15
(b) and (c) would increase the funding required in FY 04.
Mr. Jeans stated that this request would not impact FY 04 needs as
it adjusts the FY 03 authorizations based on current year
entitlements.
Senator Taylor asked the total savings amount resulting from the
reduction of debt reimbursement expenses and the lowered school
student enrollment figures.
Mr. Jeans responded that the actual reduction in the debt
reimbursement program is $3.8 million, and that a fund source
change of "up to another $5 million" further reduces the amount of
general funds required for the debt reimbursement program. He
continued that there is a savings of $6.7 million in the school
foundation funding program allocation.
Senator Taylor specified, therefore, that the general fund could
receive a credit of approximately $12 million.
Mr. Jeans agreed.
Co-chair Green restated that the FY 04 budget for the debt
reimbursement program would be independent from this request.
Mr. Jeans verified that the Department's FY 04 debt reimbursement
program budget is viewed "as separate transaction." He continued
that this request applies to the FY 03 budget appropriation and the
FY 03 Department resources.
Department of Natural Resources
SB 76
Section 12(a)
Recorder's Office
Increased costs to process heavy volume of mortgage refinance
activity and increased postage and supplies costs.
$149.1 Receipt Supported Services
NICO BUS, Administrative Services Manager, Division of Support
Services, Department of Natural Resources stated that this request
would provide for increased workload and operating costs in the
Recorder's Office due to an increase in mortgage refinancing cases.
He stated that, historically, the average number of mortgages
recorded each year is 400,000; however, he noted, the number this
year has exceeded 1,000,000. He referred to a handout titled
"Recorder's Office increase in Document Size (Image Count)" [copy
on file] that depicts the increase. He stated that the Department
hired non-permanent staff to address the backlog.
SB 76
Section 12(b)
Parks Management
Increased fees for City of Kodiak park maintenance contract
$4.0 Statutory Designated Program Receipts
Mr. Bus informed that this request would address the increased cost
of maintaining a State Park.
SB 76
Section 12(c)
Capital
National Coastal Wetlands Conservation grant pass thru to
Juneau for purchase of wetlands near Herbert River.
$553.0 federal funds
Mr. Bus stated that these funds are a pass-through federal
Department of the Interior grant to the City and Borough of Juneau
(CBJ) to purchase a parcel of land.
SFC 03 # 15, Side B 09:53 AM
Mr. Bus stated that the Department oversees the transaction, and he
noted that the CBJ Mayor urges the Committee to support this
request.
Co-Chair Green asked why the Division of Legislative Budget and
Audit (LB&A) initially disapproved this request.
Mr. Bus noted that the initial LB&A response requested the CBJ to
approve an ordinance endorsing this land transaction. He noted that
the ordinance would be finalized at an upcoming CBJ Assembly
meeting.
Mr. Bus responded to a question posed by Senator Bunde by
specifying that this one-time pass through grant transaction would
not result in any administration revenue to the Department.
SB 76
Ratifications
Section 17(b) and (c)
Fire Suppression
FY2002 Fire Suppression costs
AR37313-02 Fire General Fund and AR37311-02 Fire Federal
Receipts
$13,340,900.00 general funds
$ 3,000,000.00 federal funds
Mr. Bus stated that this ratification request provides for May and
June 2002 fire suppression expenses.
Department of Environmental Conservation
SB 75
NEW Section
Air Quality
Feb 26 Amd: Legal services for Red Dog Mines air permit
dispute
$100.0 general funds
MARY SIROKY, Legislative Liaison, Department of Environmental
Conservation explained that in 1998 the Department issued air
quality permits for an existing and a new diesel generator at the
Red Dog Mine. She informed that these permits were subsequently
objected to and blocked by the federal Environmental Agency (EPA).
She furthered that this request results from legal proceedings
whereby the Department challenged that EPA determination. She
stated that a favorable ruling is expected in the near future.
Co-Chair Green clarified, therefore, that this request is for legal
fees.
Senator B. Stevens asked whether the Department would be entitled
to legal fee reimbursement if the State prevailed.
Ms. Siroky responded that the State would not be entitled to legal
fees.
Senator Bunde asked how much money the State might receive if it
wins the lawsuit.
Ms. Siroky responded that rather than receive monetary
compensation, the State would be granted the authority to issue the
permits.
SB 76
Misc. claims
Section 16(4)
Admin Services
Miscellaneous Claims and Stale-dated Warrants $568.03
$0.6 general funds
Ms. Siroky stated that this is a miscellaneous claim request.
AT EASE: 10:03 AM / 10:03 AM
Co-Chair Green stated that this concludes the department
presentations for the supplemental bills.
Co-chair Green ordered the bills HELD in Committee.
CS FOR HOUSE BILL NO. 101(FIN) am
"An Act making special appropriations to promote the opening
of the Arctic National Wildlife Refuge for oil and gas
exploration and development; and providing for an effective
date."
This was the first hearing for this bill in the Senate Finance
Committee.
TOM WRIGHT, Staff to Representative John Harris, presented the bill
to the Committee. He explained that this legislation would
appropriate funds to Arctic Power to further their educational
efforts regarding the opening of the Arctic National Wildlife
Refuge (ANWR) on the Congressional level. He stated that the bill
would additionally provide funds to the village of Anaktuvuk to
continue their efforts in promoting ANWR; provide funds to the
Office of the Governor; and provide funds to Arctic Power to
develop monthly expenditure reports for the Legislature.
Senator Hoffman asked the purpose of the appropriation to the
Office of the Governor.
Mr. Wright responded that he was unaware of the reason for the
appropriation.
Senator Hoffman asked whether a written request from the Office of
the Governor is available.
Mr. Wright replied that a letter from the Governor was not included
in the packet.
Co-Chair Wilken suggested that a title change be considered by the
State House of Representatives to clarify that the area being
considered for exploration and development is a relatively small
portion of ANWR referred to as Area 1002. He voiced that
identification of the area in this manner might more accurately
convey that a small portion of ANWR, rather than all of ANWR would
be opened to exploration.
Mr. Wright voiced that the House of Representatives would not be
opposed to this suggestion.
Senator Hoffman asked whether the number of supporting votes in
Congress has changed.
Mr. Wright responded that ANWR is addressed in two pieces of
Congressional legislation: one is the inclusion of Area 1002 in the
Budget Reconciliation Act which is up for a reconsideration vote;
and the other is ANWR's inclusion in the Energy Bill. He specified
that a majority vote and 60 votes, respectively, are required.
Senator Hoffman asked the latest tally of the support in Congress.
Mr. Wright responded that the supporting vote tally ranges from 46
to 52 votes; however, he could not verify the actual count.
KIM DUKE, Executive Director, Arctic Power stated that the private
non-profit entity has been coordinating the effort to open ANWR for
approximately ten years. She stated that the State has allocated
funds to help Arctic Power in this endeavor, and she expressed
optimism that the circumstances have improved. She stated that
State funding has provided for such things as Congressional member
visitations to ANWR as well as allowing ANWR advocates to travel to
other states to explain the project. She stressed that this on-
going effort has benefited the State, and she voiced optimism that
the effort would be rewarded this year.
Senator Hoffman, noting that this request is $2 million less than
the original request, asked what items were omitted.
Ms. Duke voiced that this "conservative" request would allow for
the continuance of a short-term aggressive campaign; however, she
asserted, were the effort to be lengthy, additional appropriations
would be sought. She summarized that, while it is difficult to
predict the proceedings in Congress, the hope is that the campaign
would be effective.
Ms. Duke continued that in order to be effective, there are no
plans to curtail or eliminate any of the programs that Arctic Power
conducts. She stated that the campaign would continue to include
such things as the North Slope tours and the outreach program. She
stressed that the funding would be sufficient for a shortened but
aggressive campaign effort; however, she continued that were this
funding spread over a nine-month or yearlong timeframe, it would be
insufficient.
Senator Olson questioned whether this "conservative amount" of
funding, as compared to historically higher levels of funding,
might jeopardize the effectiveness of the campaign.
Ms. Duke responded that Arctic Power would pursue the campaign with
the assumption that additional funding would be forthcoming. She
reiterated that the decision was made to conduct an aggressive
campaign.
Senator Bunde asked whether Congressional visits to ANWR have
historically occurred in July.
Ms. Duke responded that tours have been conducted as early as
March. She communicated that the Office of the Governor extends
invitations to Congressional members, and that Arctic Power then
coordinates the tour.
Senator Bunde voiced support of the program.
Senator Hoffman inquired as to the type of documentation that would
be supplied to the Legislature.
Ms. Dukes explained that Arctic Power would continue to submit the
monthly reports to the Legislature, the Governor and to Alaska's
Congressional delegation as required in the grant. She mentioned
that, as required, expense reports are submitted for reimbursement
and audits of the program are conducted. She stated these records
are public.
Senator Hoffman voiced that this documentation is important as
there is a "misconception" that documentation has not been
provided.
AL ADAMS, Volunteer and Co-Chair of Arctic Power and former State
Senator, testified via teleconference from an offnet site in
Washington, DC. He stated that the campaign to open ANWR is a
coordinated effort in conjunction with such entities as the Office
of the Governor, associated industry and labor unions, and Alaska's
Congressional delegation. He opined that while this lower level of
funding might hamper the process, the Arctic Power campaign would
aggressively pursue the additional votes required to open Area
1002.
The bill was HELD in Committee.
ADJOURNMENT
Co-Chair Lyda Green adjourned the meeting at 10:17 AM.
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