Legislature(1993 - 1994)

04/28/1993 02:55 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
TO MEET AT CALL OF CHAIR
SB 183
SB 165
SB 150 OIL & GAS EXPLORATION LICENSES/LEASES
SB 89 APPROP: CAPITAL PROJECT MATCHING GRANTS
HB 67
HB 69
HB 293 EXTEND COUNCIL ON DOMESTIC VIOLENCE
HB 113
HB 133
HB 171
HB 225
HB 235
txt
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         April 28, 1993                                        
                            2:55 p.m.                                          
  TAPES                                                                        
                                                                               
  SFC-93, #69, Side 2 (225-end)                                                
  SFC-93, #71, Side 1 (000-490)                                                
                                                                               
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator Drue  Pearce,  Co-chair,  convened  the  meeting  at                 
  approximately 2:55 p.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chairs Pearce and Frank,  Senators Kelly,                 
  Kerttula, Rieger, and Sharp were present.  Senator Jacko did                 
  not attend.                                                                  
                                                                               
  ALSO  ATTENDING:    Representative  Parnell;  Charlie  Cole,                 
  Attorney  General,  Dept.  of  Law;  Mead Treadwell,  Deputy                 
  Commissioner,  Dept.  of  Environmental  Conservation;  C.E.                 
  Swackhammer, Deputy  Commissioner, Dept.  of Public  Safety;                 
  Jan Hansen,  Director, Division of Public  Assistance, Dept.                 
  of   Health  and  Social  Services;  Curtis  Lomas,  Program                 
  Officer,  AFDC,  Division  of  Public Assistance,  Dept.  of                 
  Health and Social Services;  Mike Mansker, Program  Manager,                 
  Industry Preparedness Program,  Division of Spill Prevention                 
  and  Response,  Dept.  of  Environmental Conservation;  Mike                 
  Greany, Director, Legislative Finance Division; Cindy Smith,                 
  Executive Director, Network on  Domestic Violence and Sexual                 
  Assault,  Dept.  of  Public  Safety;  Sherrie  Goll,  Alaska                 
  Women's  Lobby;  Doug Wooliver,  House Majority  Office; and                 
  aides  to  committee  members  and   other  members  of  the                 
  legislature.                                                                 
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB  67    -    ELIGIBILITY FOR PUBLIC ASSISTANCE                             
                                                                               
                 SCS  CSHB 67  (Finance) was  REPORTED  OUT of                 
                 committee  with nine  fiscal  notes from  the                 
                 Dept. of Health and Social Services.                          
                                                                               
  HB  69    -    SEX OFFENDER REGISTRATION                                     
                                                                               
                 CSHB  69  (Finance)   was  REPORTED  OUT   of                 
                 committee accompanied by a $86.5 fiscal  note                 
                 from the  Dept.  of Public  Safety  and  zero                 
                 notes from the Dept. of Administration, Dept.                 
                 of Law, and Dept. of Corrections.                             
                                                                               
                                                                               
  HB 293    -    EXTEND COUNCIL ON DOMESTIC VIOLENCE                           
                                                                               
                 SCSHB  293  (Finance)  was  REPORTED  OUT  of                 
                 committee with a "do pass" recommendation and                 
                 a zero fiscal  note from the Dept.  of Public                 
                 Safety.                                                       
                                                                               
  SB  89    -    APPROP: CAPITAL PROJECT MATCHING GRANTS                       
                                                                               
                 CSSB  89  (Finance)   was  REPORTED  OUT   of                 
                 committee  totaling  $20,000,000  rather than                 
                 $65,300,000.                                                  
                                                                               
  SB 150    -    OIL & GAS EXPLORATION LICENSES/LEASES                         
                                                                               
                 CSSB  150  (Finance)  was   REPORTED  OUT  of                 
                 committee with  a $51.0 fiscal note  from the                 
                 Dept.  of  Environmental Conservation,  and a                 
                 zero note from the Dept. of Revenue.                          
                                                                               
  SB 165    -    APPROP: ALYESKA SETTLEMENT/FY 93 SUPPLMNT                     
                                                                               
                 The  "J"  version  of  CSSB  165   (Finance),                 
                 totaling   $28,200,000,   was   ADOPTED   and                 
                 REPORTED OUT of committee.                                    
                                                                               
  SB 183    -    APPRO: EXXON VALDEZ,CAPITAL BUDGET FY 94                      
                                                                               
                 Amendments  1,  2, 3,  5,  6,  7 and  8  were                 
                 ADOPTED.  CSSB 183 (Finance) was REPORTED OUT                 
                 of committee with a "do pass" recommendation.                 
                                                                               
                                                                               
  CS FOR HOUSE BILL NO. 69(FIN)                                                
                                                                               
       An Act  relating  to registration  of  and  information                 
       about  sex  offenders  and  amending  Alaska  Rules  of                 
       Criminal Procedure 11(c) and 32(b).                                     
                                                                               
  Co-chair Pearce  directed that CSHB  69 (Fin) be  brought on                 
  for discussion.                                                              
                                                                               
  DOUG WOOLIVER, attorney, House Majority Office,  came before                 
  committee.  He explained that  the legislation would require                 
  persons convicted  of various  sex crimes  to register  with                 
  either  the  Alaska  State   Troopers  or  municipal  police                 
  departments.   Crimes covered  by the  law include:   sexual                 
  assault, sexual abuse  of a  minor, promoting  prostitution,                 
  incest,  and  unlawful   exploitation  of  a  minor.     The                 
  registration   requirement  would   not  only   cover  those                 
  convicted in Alaska but  those with convictions who  come to                 
  Alaska from elsewhere.  Locals have seven days  within which                 
  to register while  those from  outside Alaska have  fourteen                 
                                                                               
                                                                               
  days.  The registration requirement  would be retroactive to                 
  1984.  Individuals with two  or more sex offense convictions                 
  would be  required to comply with  registration requirements                 
  for life while those with a single offense would be required                 
  to register for fifteen years.                                               
                                                                               
  Mr. Wooliver next listed  information that would have  to be                 
  provided  to  law  enforcement authorities  at  the  time of                 
  registration.  With the exception of  fingerprints, driver's                 
  license,  and   aliases  used,  all  information   would  be                 
  available to the public.                                                     
                                                                               
  Mr. Wooliver noted that Alaska leads nationally in instances                 
  of child sexual abuse (six times the national average).  The                 
  state is  second, nationally,  in terms  of sexual  assault.                 
  Sex offenders have a  high recidivism rate.  One out of five                 
  will subsequently be re-arrested.  Sources indicate that sex                 
  offenders are not like other                                                 
  criminals.  They  are "almost impervious" to the benefits of                 
  therapy.   A number  of states  have discontinued  treatment                 
  programs since studies  in Ontario  and Minnesota  indicated                 
  that those who participated in  them actually committed more                 
  violent crimes than those who did  not receive treatment.  A                 
  1983  Iowa study  found that  the average  number of  sexual                 
  assaults  committed against  children  by each  offender was                 
  167.  The average number  of child victims was 76.   Because                 
  of the high rate of sex offenses in Alaska and the high rate                 
  of  recidivism, it is important  for employers and others to                 
  have access to  information regarding offenders in  order to                 
  protect themselves and their children.                                       
                                                                               
  Mr.  Wooliver  attested to  present  lack of  information on                 
  offenders from other states.  He stressed that an additional                 
  benefit  of  the  bill  would  be enhanced  ability  of  law                 
  enforcement to locate sex offenders  if they become suspects                 
  in additional crimes.                                                        
                                                                               
  Eighteen  states   currently  have   similar  sex   offender                 
  registration  laws.    CSHB  69   (Finance)  is  similar  to                 
  legislation  from  other  states  except  that  it  provides                 
  greater public protection by making registration information                 
  more accessible to the public.                                               
                                                                               
  C.E.  SWACKHAMMER,  Deputy  Commissioner,  Dept.  of  Public                 
  Safety, next came  before committee.  He voiced  support for                 
  the  legislation   since  registration  would   serve  as  a                 
  deterrent to  offenders and  provide an  additional resource                 
  for law enforcement personnel.   He further attested to  the                 
  substantial number of victims involved in crimes perpetrated                 
  by sex offenders.                                                            
                                                                               
  CINDY  SMITH,  Executive   Director,  Network  on   Domestic                 
  Violence and Sexual Assault, came before committee,  voicing                 
  support  for the  bill.   She noted  that over the  past two                 
                                                                               
                                                                               
  years, forcible rape  of adult women in Alaska has increased                 
  91%.  In 1992, 530 women reported rape to the police.  There                 
  were  700 confirmed reports  of child sexual  abuse the same                 
  year.                                                                        
                                                                               
  Treatment  personnel who  track offenders  following release                 
  from prison indicate  that recidivism is approximately  80%.                 
  Treatment  staff supports  the  legislation, believing  that                 
  community awareness and monitoring of sex  offender behavior                 
  has potential to reduce that recidivism.  Ms. Smith stressed                 
  that unlike  other criminals,  sex offenders  do not  become                 
  less dangerous over time.                                                    
                                                                               
  Senator Kerttula  noted that the  fiscal note appears  to be                 
  modest  and  asked  if sufficient  financial  resources were                 
  being directed toward the effort.  Mr. Swackhammer indicated                 
  that requested funding would get the program going.                          
                                                                               
  Senator Kerttula MOVED for passage of CSHB 96 (Finance) with                 
  individual recommendation.   Senator Kelly posed  a question                 
  regarding the 14-day  registration requirement for offenders                 
  from outside  Alaska.  Mr. Wooliver acknowledged substantial                 
  discussion of  a 30-day period.  The universal complaint was                 
  that the  time period was  too long.   Many  people come  to                 
  Alaska to fish  or work in the fishing  industry.  Under the                 
  longer time period, "They have enough time to fish and spend                 
  their  whole   summer   there   and   then   leave   without                 
  registering."    The shorter  time  is consistent  with most                 
  states.   Senator Kelly reiterated  concern that 14  days is                 
  too short  a time period.  He  stressed that the bill should                 
  cover  the  offender  who seeks  to  establish  residency in                 
  Alaska.  Senator  Sharp concurred  in concern regarding  the                 
  shorter period, noting that an  individual does not become a                 
  resident until he or she has been  in the state for 30 days.                 
   Mr. Wooliver read a  list of time frames from  other states                 
  ranging from 24 hours to 30 days.                                            
                                                                               
  Senator Rieger inquired regarding the penalty for failure to                 
  register.    Mr.  Wooliver  said  that  it  was  a  Class  A                 
  misdemeanor (up to a year in prison).                                        
                                                                               
  Senator Kerttula restated his MOTION  for passage.  He noted                 
  difficulties associated  with application  of law in  multi-                 
  cultural communities and  states.   No objection to  passage                 
  having  been raised, CSHB  69 (Finance) was  REPORTED OUT of                 
  committee with a $86.5 fiscal note  from the Dept. of Public                 
  Safety,  two  zero notes  from  the Dept.  of Administration                 
  (Public Advocacy and  Public Defender)  and zero notes  from                 
  the Dept. of Corrections  and the Dept. of Law.  All members                 
  present  signed  the committee  report  "no rec."   Senators                 
  Kelly and Jacko were absent and did not sign.                                
                                                                               
                                                                               
  CS FOR HOUSE BILL NO. 67(FIN)(efd fld)                                       
                                                                               
       An  Act  relating to  eligibility  for and  payments of                 
       public assistance.                                                      
                                                                               
  Co-chair  Pearce  directed that  CSHB  67 (Fin)(efd  fld) be                 
  brought on for discussion and directed  attention to a draft                 
  SCS  CSHB 67  (Finance)  (8-GH1036\W, Lauterbach,  4/28/93).                 
  Co-chairman Frank MOVED for adoption of  work draft "W."  He                 
  explained  that it  adopts the  House approach  in  terms of                 
  rolling amounts back to the 1992  level rather than the 1991                 
  level proposed  by  the Governor.    It also  removes  House                 
  Finance  language  requiring an  increase  if funding  falls                 
  below  75% of  the poverty  line  for AFDC  and 100%  of the                 
  poverty  line  for  adult  public  assistance.    The  draft                 
  provides  for increases when  the legislature supplies money                 
  specifically for  that purpose.   A July 1,  1993, effective                 
  date was also added.                                                         
                                                                               
  In  response  to an  inquiry  from Senator  Rieger, Co-chair                 
  Frank explained that  the draft contains higher  numbers but                 
  less of a reduction than the  House or the Governor for both                 
  AFDC and public assistance.                                                  
                                                                               
  JAN HANSEN,  Director, Division of  Public Assistance, Dept.                 
  of  Health  and Social  Services,  came before  committee in                 
  response  to  questions raised  by  Senator Kerttula.   Mrs.                 
  Hansen explained that adult public assistance, including the                 
  elderly, the disabled, and the  blind, consists of a federal                 
  core  payment of $447.00  and a state  supplement of $374.00                 
  for a total of  $821.00.  Under the proposed  Senate Finance                 
  bill,  the  state supplement  would  be reduced  to $362.00,                 
  reducing the total  payment to  $809.00--a net reduction  of                 
  $12.00.                                                                      
                                                                               
  SHERRIE  GOLL,   Alaska  Women's  Lobby,  next  came  before                 
  committee.  She noted  the 35 groups and 65  individuals who                 
  previously  testified  in  opposition  to  the  bill  as  it                 
  traveled  through various  committees.   She  stressed  that                 
  while  the  proposed  reduction  might  merely  represent  a                 
  restaurant meal to many  people, to a poor mother  and child                 
  it represents much more.   It represents two weeks  worth of                 
  Pampers for a baby, a bag of groceries, etc.                                 
                                                                               
  Ms. Goll specifically noted changes in COLA that distinguish                 
  the  Senate  bill from  that  proposed  by the  House.   She                 
  acknowledged that the  automatic COLA  is unique to  Alaska.                 
  It is  not,  however, unusual  for states  to adjust  public                 
  assistance payments to cover inflation.   She stressed  that                 
  while the average Alaskan spends approximately 30% of his or                 
  her  income   on  housing.     An   AFDC  household   spends                 
  approximately 70%.   Ms. Goll voiced  a preference for  mere                 
  suspension  of  the  COLA  as  proposed  by  the  Governor's                 
  legislation.   She questioned  how far  into poverty  people                 
                                                                               
                                                                               
  should be allowed to fall  before public assistance payments                 
  are adjusted upward.                                                         
                                                                               
  Co-chair Frank referenced a fiscal note analysis  indicating                 
  that changes  would not become effective until October.  Jan                 
  Hansen explained that  because of  failure of the  effective                 
  date  in  the House,  the  earliest implementation  would be                 
  October 1, 1993.  A revised fiscal note references that date                 
  as well  as associated  additional costs.   The  legislation                 
  would  become  effective  90  days  after signature  by  the                 
  Governor.    While the  90-day  limit  may end  as  early as                 
  September  5,  the  earliest  the  department  could  effect                 
  changes for the entire caseload would be at the beginning of                 
  the next month.                                                              
                                                                               
  End, SFC-93, #69, Side 2                                                     
  Begin, SFC-93, #71, Side 1                                                   
                                                                               
  Senator   Kelly   inquired  concerning   a   definition  for                 
  "dependent child."   CURTIS  LOMAS,  Program Officer,  AFDC,                 
  Division of Public  Assistance, Dept.  of Health and  Social                 
  Services,  came before  committee.  Mr.  Lomas noted  that a                 
  definition currently exists in statutes.   He explained that                 
  "under eighteen" years of age would be removed from statutes                 
  and  "dependent  child"   substituted  therefore  to   cover                 
  eighteen year olds who are still in high school.                             
                                                                               
  In response  to an  additional question  from Senator  Kelly                 
  concerning monetary standards that  may be exceeded  through                 
  regulation, Mrs.  Hansen  explained that  setting  the  need                 
  standard higher than the payment  standard does not increase                 
  the payment to  the client.  It allows a client working at a                 
  low paying job to earn moneys to supplement the AFDC payment                 
  while the individual works his or her way off AFDC.                          
                                                                               
  Mrs.  Hansen subsequently  referenced AS  47.25.410  (3) and                 
  recited the definition for "dependent child."                                
                                                                               
  Co-chairman Frank MOVED that SCS CSHB 67 (Finance) pass from                 
  committee  with  individual recommendations  and appropriate                 
  fiscal notes.  No objection having  been raised, SCS CSHB 67                 
  (Finance) was REPORTED  OUT of  committee.  Co-chairs  Frank                 
  and Pearce and Senators Kelly, Rieger,  and Sharp signed the                 
  committee report with  a "do pass" recommendation.   Senator                 
  Kerttula signed "Do not pass."  Senator Jacko was absent and                 
  did not  sign.   The following  Dept. of  Health and  Social                 
  Services fiscal notes accompanied the bill:                                  
                                                                               
       AFDC                          ($3,914.9)                                
       AFDC                          ( 1,944.4)                                
       AFDC                          ( 2,107.3)                                
       APA                           (   607.7)                                
       APA                           (   973.9)                                
       APA                                0                                    
                                                                               
                                                                               
       PFD                               414.0                                 
       Medicaid Facilities           (   106.8)                                
       Medicain Non-Facilities       (   106.9)                                
                                                                               
                                                                               
  HOUSE BILL NO. 293                                                           
                                                                               
       An Act extending the termination date of the Council on                 
       Domestic Violence and Sexual Assault.                                   
                                                                               
  Co-chair Pearce  directed  that HB  293  be brought  on  for                 
  discussion and referenced  Amendment No.  1.  She  explained                 
  that Amendment  No. 1 would  change the extension  date from                 
  June 30,  1997, to June 30,  1998.  The  Co-chair noted past                 
  political  wrangling concerning the  council and voiced need                 
  for  an  additional wind-down  year  prior to  future sunset                 
  review.   Co-chair Frank concurred and MOVED for adoption of                 
  Amendment No. 1.  No objection having been raised, Amendment                 
  No. 1 was ADOPTED.  Senator Rieger MOVED that SCS for HB 293                 
  (Finance)    pass    from    committee    with    individual                 
  recommendations.  No  objection having  been raised, SCS  HB
  293 (Finance)  was REPORTED  OUT of  committee  with a  zero                 
  fiscal note from  the Dept. of  Public Safety.  All  members                 
  present  signed  the  committee  report  with  a  "do  pass"                 
  recommendation.  Senator Jacko was absent and did not sign.                  
                                                                               
                                                                               
  SENATE BILL NO. 89                                                           
                                                                               
       An  Act  making  appropriations  for  capital   project                 
       matching grant programs; and providing for an effective                 
       date.                                                                   
                                                                               
  Co-chair  Pearce  directed that  SB  89  be  brought on  for                 
  discussion.  She  noted that the appropriation  requested by                 
  the Governor  totaled $67,000,000.   The  House has  already                 
  sent  $40,000,000  over  to  the  Senate.   Co-chair  Pearce                 
  directed attention to proposed Amendment No. 1 and explained                 
  that it  would reduce  SB 89  to $20,000,000  and allow  the                 
  Senate  capital  budget  plan  to  remain at  $300  million.                 
  Senator Kelly MOVED  for adoption  of Amendment No.  1.   No                 
  objection having been  raised, Amendment No. 1  was ADOPTED.                 
  Senator  Sharp  MOVED  that  CSSB  89  (Finance)  pass  from                 
  committee  with  individual recommendations.    No objection                 
  having been  raised, CSSB 89  (Finance) was REPORTED  OUT of                 
  committee.  Co-chairs  Frank and  Pearce and Senators  Kelly                 
  and  Sharp  signed the  committee  report with  a  "do pass"                 
  recommendation.    Senator  Kerttula signed  "Do  not pass."                 
  Senator Rieger signed  but made no recommendation.   Senator                 
  Jacko was absent and did not sign.                                           
                                                                               
  [Tape  malfunction.   This portion  of  the meeting  did not                 
                                                                               
                                                                               
  record.  Minutes reflect shorthand transcription.]                           
                                                                               
                                                                               
  SENATE BILL NO. 150                                                          
                                                                               
       An Act providing for oil  and gas exploration licenses,                 
       and oil and gas leases, in  certain areas of the state;                 
       and providing for an effective date.                                    
                                                                               
  Co-chair  Pearce directed  that  SB 150  be  brought on  for                 
  discussion.    Senator Kelly  directed  attention to  a work                 
  draft CSSB  150 (Finance)  (8-GS1012\Q, Chenoweth,  4/27/93)                 
  and MOVED  for adoption.   No objection having  been raised,                 
  the "Q" version of CSSB 150 (Finance) was ADOPTED.                           
                                                                               
  Senator  Kelly next directed attention to  page 11, line 11,                 
  and noted  need to  change "mean  low water"  to "mean  high                 
  water."   He  then MOVED for  adoption of  that change.   No                 
  objection having  been raised,  the motion  CARRIED and  the                 
  Amendment was ADOPTED.                                                       
                                                                               
  Senator Kelly  reference need  for an  additional change  at                 
  page 11 and asked that department staff speak thereto.  MIKE                 
  MANSKER,  Program  Manager,  Industry Preparedness  Program,                 
  Division  of   Spill  Prevention  and  Response,   Dept.  of                 
  Environmental  Conservation,  came  before  committee.    He                 
  directed attention to  lines 22,  25, 28, and  31 and  noted                 
  need to change "operator" to "person" since current statutes                 
  refer to  "person" rather  than "operator."   Senator  Sharp                 
  MOVED for  adoption of  the  proposed language  change.   No                 
  objection having been  raised, the  motion CARRIED, and  the                 
  Amendment was ADOPTED.                                                       
                                                                               
  Co-chair Pearce called for objections to passage of the bill                 
  from committee.   No objection having been raised,  CSSB 150                 
  (Finance) was REPORTED  OUT of committee with a $51.0 fiscal                 
  note from the  Dept. of  Natural Resources and  a zero  note                 
  from the  Dept.  of Revenue.    Co-chair Pearce  signed  the                 
  committee report with a "do  pass" recommendation.  Co-chair                 
  Frank and Senators Kelly, Rieger, and Sharp signed "no rec."                 
  Senator Kerttula  signed "Do not  pass."  Senator  Jacko was                 
  absent and did not sign.                                                     
                                                                               
                                                                               
  SENATE BILL NO. 165                                                          
                                                                               
       An  Act  making   an  appropriation   to  the   Alyeska                 
       Settlement Fund  and  making  appropriations  from  the                 
       Alyeska Settlement Fund; and providing for an effective                 
       date.                                                                   
                                                                               
  Co-chair Pearce  directed  that SB  165  be brought  on  for                 
                                                                               
                                                                               
  discussion.  Co-chair  Frank referenced work draft  CSSB 165                 
  (Finance) (8-LS0854\J,  Utermohle,  4/7/93)  and  MOVED  for                 
  adoption.  No objection having been raised,  the "J" version                 
  of CSSB  165 (Finance)  was  ADOPTED.   Co-chair Frank  next                 
  directed  attention   to  a  proposed  Amendment   which  he                 
  explained would delete existing Sec. 2 and insert a new Sec.                 
  2.  New Sec. 2 would provide $14,500,000 for construction of                 
  oil response  equipment storage  facilities at Tatitlek  and                 
  Chenega  and  $6,000,000  for construction  of  a  road from                 
  Cordova to  Shepard Point.   The  Co-chairman further  noted                 
  need to delete  Sec. 6 containing lapse  provisions for Sec.                 
  2.  He then MOVED  for adoption of the changes at Sec. 2 and                 
  Sec. 6.  No objection having been raised, the motion CARRIED                 
  and the Amendment was ADOPTED.                                               
                                                                               
  Co-chair  Frank  MOVED  that CSSB  165  (Finance)  pass from                 
  committee  with individual  recommendations.   No  objection                 
  having been raised,  CSSB 165 (Finance) was REPORTED  OUT of                 
  committee.  All members present  signed the committee report                 
  "no rec," with the exception  of Senator Kerttula who signed                 
  "Do not pass."  Senator Jacko was absent and did not sign.                   
                                                                               
  [The  recording problem  was corrected  at this point.   The                 
  remainder of the minutes reflect tape transcription.]                        
                                                                               
                                                                               
  SENATE BILL NO. 183                                                          
                                                                               
       An  Act making  special appropriations  for restoration                 
       projects relating to the Exxon Valdez oil spill and for                 
       oil  spill  response  projects;  and  providing  for an                 
       effective date.                                                         
                                                                               
  Co-chair  Pearce directed  that  SB 183  be  brought on  for                 
  discussion  and noted a  number of amendments  for the bill.                 
  Co-chair Frank MOVED  for adoption of  Amendment No. 1.   No                 
  objection having been raised, Amendment No. 1 was ADOPTED.                   
                                                                               
  Senator Kelly MOVED for adoption of Revised Amendment No. 2.                 
  He explained  that it would  ensure that no  construction at                 
  the Alaska Sea Life Center  commences until all financing is                 
  in place.  He noted that  identical language recently passed                 
  the  House.    No  objection  having  been  raised,  Revised                 
  Amendment No. 2 was ADOPTED.                                                 
                                                                               
  Co-chair Pearce directed  attention to  Amendment No. 3  and                 
  noted that  it was requested by  the Dept. of  Law.  Senator                 
  Rieger MOVED  for adoption.  Co-chair Pearce  asked that the                 
  Attorney  General  speak  to  the  request.   CHARLIE  COLE,                 
  Attorney General, Dept.  of Law, came before  committee.  He                 
  explained that "substantial, ongoing" is superfluous at page                 
  5,  line 12, and should be deleted therefrom.  The change is                 
  technical  rather  than substantive.    No objection  to the                 
                                                                               
                                                                               
  motion for adoption having been raised.  Amendment No. 3 was                 
  ADOPTED.                                                                     
                                                                               
  Co-chair Pearce directed attention to Amendment No. 4.   Co-                 
  chair Frank advised that it was no longer necessary in light                 
  of  adoption  of  Amendment  No.  1.   He  then  voiced  his                 
  assumption that under  language as changed by  Amendment No.                 
  1, the  state would not  be prohibited  or constrained  from                 
  awarding  competitive contracts to  either private or public                 
  entities.                                                                    
                                                                               
  Co-chair Pearce next  directed attention to Amendment  No. 5                 
  and  noted the  request to add  "and related  facilities" to                 
  language relating to  the Kachemak  Bay State Park  visitors                 
  center.   Attorney General  Charlie Cole  spoke to  requests                 
  from residents of the Homer area  that the above language be                 
  included.  He stressed need for  ability to apply funding to                 
  methods of  access to  and from the  park, dock  facilities,                 
  maintenance,  staffing,  etc.     Co-chair  Frank  expressed                 
  concern  that funding  might be  spent on  trails and  other                 
  facilities and no visitor center  would be built.   Attorney                 
  General Cole voiced his understanding that development would                 
  focus on the center.  Senator  Sharp referenced an April 15,                 
  1993, memorandum  from the department listing  six different                 
  items of expenditure for the funding.   Senator Rieger MOVED                 
  for adoption of Amendment  No. 5.  No objection  having been                 
  raised,  Amendment  No.  5  was  ADOPTED.   Co-chair  Pearce                 
  subsequently  raised  questions  concerning  the  $500.0  in                 
  projects set forth on the  above-referenced memorandum.  She                 
  then  asked if the  park system  intends to  undertake those                 
  projects rather than a visitor center.  The Attorney General                 
  advised  that  the  Governor  strongly  favors  the  visitor                 
  center.  Addition  of "and related facilities"  is not meant                 
  to incorporate the  views expressed  in the DNR  memorandum.                 
  Mr. Cole  reiterated that the  central focus is  the visitor                 
  center.   Co-chair  Pearce asked  who  would decide  how the                 
  $500.0  is spent.  The  Attorney General said the department                 
  would  be  asked to  sketch out  a  plan of  development for                 
  approval  by the Governor.   Senator  Sharp remarked  on the                 
  existence of property  in-holders in  the area and  stressed                 
  that the  $500.0 should not  develop amenities "next  to the                 
  in-holders' property."  Mr. Cole concurred.                                  
                                                                               
  Co-chair Pearce directed attention to Amendment No. 6  a n d                 
  noted that it was requested by Commissioner Rosier, Dept. of                 
  Fish and Game.   She then asked why it was  necessary to add                 
  "habitat"   to   restoration   projects   under   department                 
  jurisdiction.    Attorney General  Cole  explained that  the                 
  addition would clarify  the purpose.   It is designed to  be                 
  limiting in response to concerns  that "restoration" was too                 
  broad and unqualified.  Senator  Kelly MOVED for adoption of                 
  Amendment No. 6.  No objection having been raised, Amendment                 
  No. 6 was ADOPTED.                                                           
                                                                               
                                                                               
  Senator Rieger MOVED  for adoption of  Amendment No. 7.   He                 
  explained  that  he  had  received  backup  from  sport  and                 
  commercial fishermen in upper Cook Inlet indicating that not                 
  enough is known about the production capacity of the Susitna                 
  River and  its drainage.   The $150.0 study  should commence                 
  the informational effort.  No  objection having been raised,                 
  Amendment No. 7 was ADOPTED.                                                 
                                                                               
  Co-chair  Pearce  referenced  language  at  pages  4  and  5                 
  providing $5 million for  an oil spill response ferry.   She                 
  said that the House struck that language from its version of                 
  the  legislation  and  instead  funded  the ferry  from  the                 
  mitigation  account.   She  then  queried members  regarding                 
  retention in  the Senate  bill.   Senator  Kelly voiced  his                 
  belief  that  the  ferry  would  ultimately cost  more  than                 
  estimated.  He then  said he had no objection to leaving the                 
  funding in place.                                                            
                                                                               
  Senator Rieger directed  attention to page  5, line 13,  and                 
  inquired  concerning  the lapse  date  of December  1, 1994.                 
  Attorney General Cole said that the administration requested                 
  that  the  date  be  changed  to  December 1,  1999.    That                 
  amendment was adopted by the House.   Senator Rieger advised                 
  that he would  support extension of the  date but questioned                 
  whether it should  extend to 1999.  He  then MOVED to change                 
  the lapse date stated at page  5, line 13, and page 5,  line                 
  16, from December  1, 1994, to  December 1, 1997.   Co-chair                 
  Pearce  called  for objections  to  Amendment  No.  8.    No                 
  objection having been  raised, Amendment No. 8  was ADOPTED,                 
  and the lapse date was changed to December 1, 1997.                          
                                                                               
  Co-chair Pearce queried members on  disposition of the bill.                 
  Senator  Kelly  MOVED  that  CSSB  183 (Finance)  pass  from                 
  committee  with  individual recommendations.    No objection                 
  having  been raised, CSSB 183 (Finance)  was REPORTED OUT of                 
  committee.  Co-chairs  Pearce and Frank and  Senators Kelly,                 
  Rieger, and  Sharp signed  the committee  report with a  "do                 
  pass"  recommendation.   Senator Kerttula  signed "no  rec."                 
  Senator Jacko was absent and did not sign.                                   
                                                                               
  Attorney General  Cole commented on  publications indicating                 
  that he  was embarrassed by the bill.   He said that was not                 
  the case, and  he voiced  support for the  legislation.   He                 
  acknowledged  that  he  was  not  present  when  all of  the                 
  projects were formulated, but again voiced his support.                      
                                                                               
  RECESS                                                                       
                                                                               
  Co-chair  Pearce  directed  that  the meeting  be  recessed,                 
  subject to a call of the Chair.  The meeting was recessed at                 
  approximately 4:15 p.m.                                                      
                                                                               

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