HOUSE BILL NO. 372                                                           
                                                                               
       "An Act relating to the four dam pool transfer fund."                   
                                                                               
  RANDY  WELKER,  LEGISLATIVE  AUDITOR,   LEGISLATIVE  AFFAIRS                 
  AGENCY observed that HB 372 was requested by the Legislative                 
  Budget  and  Audit   Committee.    He  explained   that  the                 
  Legislature failed to make an appropriation link between the                 
  Four  Dam Pool  Transfer Fund  and the  receiving fund  from                 
  which the appropriation was made.   House Bill 372 would add                 
  language  to clarify the intent of  the Legislature that the                 
  funds be appropriated for the involved projects.  House Bill                 
  372 will remove  the subject  to appropriation language  and                 
  insert "unless otherwise provided in  an appropriation."  He                 
  stressed    that    expenditures    cannot   occur    absent                 
  appropriation.                                                               
                                                                               
  Representative  Hanley   referred  to  a  letter   from  the                 
  Department  of  Law  to  Senator  Taylor, dated  1/3/94,  in                 
  regards to  the transfer of  funds to  the Southeast  Energy                 
  Fund (copy on file).   He maintained that the  Department of                 
  Law  was incorrect  in concluding  that the  funds  could be                 
  transferred.  He expressed support for HB 372.                               
                                                                               
  JOE AMBROSE, STAFF,  SENATOR ROBIN  TAYLOR stressed that  HB                 
  372 would create a mechanism for inner account transfers.                    
                                                                               
  Representative Brown provided members with AMENDMENT 1 (copy                 
  on  file).   Amendment  1 would  delete  all material  after                 
  "fund", on page 1, line 6; and insert "to the general fund."                 
  She  explained  that  the amendment  would  add  $12 million                 
  dollars back to  the General  Fund.  She  stressed that  the                 
  appropriations have not yet been made.   She argued that the                 
  projects  contained  are  not  priorities  of the  State  of                 
  Alaska.    She recommended  that  the Committee  be fiscally                 
  responsible.                                                                 
                                                                               
  Representative   Brown   MOVED   to   ADOPT   AMENDMENT   1.                 
  Representatives Parnell  and Martin  spoke in  opposition to                 
  the  amendment.    Representative  Martin  OBJECTED  to  the                 
  amendment.  A roll call vote was taken on the motion.                        
                                                                               
  IN FAVOR: Brown                                                              
  OPPOSED:  Grussendorf,  Hoffman,  Navarre,  Foster,  Hanley,                 
                 Martin, Parnell, Therriault, Larson                           
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (1-9).                                                     
                                                                               
  Representative  Brown  asked  if   the  appropriation  is  a                 
  continuing appropriation.    Mr.  Welker  replied  that  the                 
  legislation simply directs the revenue  flow to a subaccount                 
  within the General Fund.  Legislative appropriation is still                 
  required for the expenditure.                                                
                                                                               
  Representative  Martin  MOVED  to  report   HB  372  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  Representative Brown OBJECTED.  A                 
  roll call vote was taken on the motion.                                      
                                                                               
  IN FAVOR: Grussendorf,  Hoffman,  Navarre,  Foster,  Hanley,                 
                 Martin, Parnell, Therriault, Larson                           
  OPPOSED:  Brown                                                              
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  HB  372  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Community and Regional Affairs.