Legislature(1997 - 1998)
04/17/1998 03:36 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 325
An Act making appropriations for the operating and loan
program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date.
HOUSE BILL NO. 326
An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date.
MENTAL HEALTH
Co-Chair Hanley MOVED to ADOPT amendment Mental Health #1
into the capital portion of HB 326 (copy on file). He
compared the amendment to the governor's request. He
observed that the appropriation of $175 thousand dollars to
the Alaska Psychiatric Institute is $50 thousand dollars
less than the governor's submission. He observed that the
appropriation of $200 thousand dollars for Americans with
Disabilities Act upgrades and a Client Data Intergration
Project were funded in HB 461, the supplemental bill.
Co-Chair Hanley explained that the past years funding was
through mental health trust funds and capital budgets. Some
of the current funding would come from the Alaska Housing
Finance Corporation (AHFC) dividend of $103 million dollars
to the state. Some of the appropriations are grants.
There being NO OBJECTION, Mental Health #1 was adopted.
DEPARTMENT OF CORRECTIONS
Representative J. Davies MOVED to ADOPT Amendment DOC-1
(copy on file). He explained that the amendment would
appropriate $182.1 thousand dollars to the Commissioner's
Office. This would include a $97 thousand dollar RSA to
the Department of Law. The amendment would allow the
restoration of a special assistant in Anchorage and an
assistant attorney general in Juneau. He maintained that
the positions are needed to fulfill statutory obligations.
Representative Mulder argued against the amendment. He
noted that the department rolled forward $2.5 million
dollars into the current year. He observed that the
subcommittee allowed a $190 thousand dollars increment in
the Commissioner's Office.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf
OPPOSED: Davis, Kelly, Kohring, Martin, Mulder, Therriault,
Hanley
Representatives Moses and Foster were absent from the vote.
The MOTION FAILED (2-7).
Representative J. Davies MOVED to ADOPT Amendment DOC-2
(copy on file). He explained that the amendment would add
$500 thousand dollars for Community Jails. The amendment
would provide funding for 15 existing jails and add $100
thousand dollars for two new jails.
Representative Mulder spoke against the amendment. He
agreed that community jails are important to the state's
criminal system. He pointed out that contracts are coming
up for renewal. There is a great disparity of the price per
day paid to jails. The subcommittee intends that the
department work to standardize the price per day. He
stressed that an alternative funding source is needed.
In response to a question by Representative Grussendorf,
Representative Mulder clarified that there is approximately
$4.4 million dollars in the community jail component. The
Governor requested $5 million dollars. He explained that
the subcommittee approved funding for the current contract
level.
MARGARET PUGH, COMMISSIONER, DEPARTMENT OF CORRECTIONS
testified in support of the amendment. She explained that
community jails have been on a fixed three-year contract.
The Governor's request included a 10 percent increase. The
Governor's request would also provide assistance to other
rural communities that have lock-ups but receive no state
funding. She observed that prisoners are being held longer
in community jails until they are transferred to state run
facilities. Contracts are fixed and do not vary according
to prisoner load.
DWAYNE PEEPLES, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF CORRECTIONS explained that the state will
attempt to negotiate a one-year contract at the end of the
current three-year fixed contract. Co-Chair Hanley
suggested that contract negotiations would begin at whatever
funding level is provided.
Representative J. Davies questioned if it would be
appropriate to request a supplemental. Co-Chair Hanley
stressed that the department would have to decided if it
were appropriate to request a supplemental.
Representative Mulder interjected that the cost per bed is
high.
Commissioner Pugh observed that community jails were
included in the state's comprehensive correctional plan to
Judge Hunt. This was the first week that the Department of
Corrections did not incur fines for prisoner overcrowding.
She expressed concern that reductions would affect the
state's plan.
A roll call vote was taken on the motion.
IN FAVOR: Grussendorf, J. Davies
OPPOSED: Davis, Foster, Kohring, Martin, Mulder,
Therriault, Hanley
Representatives Moses and Kelly were absent from the vote.
The MOTION FAILED (2-7).
Representative J. Davies MOVED to ADOPT Amendment DOC-3
(copy on file). He explained that the amendment would add
$307.5 thousand dollars for Inmate Health Care Services.
Representative Mulder spoke against the amendment. He
concluded that the department could obtain efficiencies.
Mr. Peeples explained that the department would try to
project future medical expenses and look at how they can be
covered through contract. He observed that the department
received a $1.6 million dollar supplemental. He observed
that the department might need a supplemental in the future
year.
Representative Mulder observed that the department had a
number of unanticipated inmate medical expenses in the past
year. He stressed that there is not an adversarial
relationship.
In response to a question by Representative Grussendorf,
Commissioner Pugh noted that the state's inmate population
is beginning to age. Representative Martin questioned other
ways that inmate medical costs could be reduced.
Commissioner Pugh observed that the medical parole
legislation was narrowly crafted. Discussion continued
regarding inmate medical costs.
A roll call vote was taken on the motion to adopt Amendment
DOC-3.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kohring, Martin, Mulder,
Therriault, Hanley
Representative Kelly was absent from the vote.
The MOTION FAILED (3-7).
Representative J. Davies MOVED to ADOPT Amendment DOC-4
(copy on file). The amendment would add $162.1 thousand
dollars to the Department of Corrections, Administrative and
Support, Community Correction's Director's Office (copy on
file). The amendment would fund Smart Start Probation
Officers.
Representative Mulder spoke against the amendment. He
maintained that the department has a problem within
community corrections. A survey taken by parole and
probation offices showed that 76 percent did not feel they
had received sufficient direction from the director. The
subcommittee suggested that the Division be combined with
Institutions. The department decided to retain a separate
division. Two of the four additional probation officers
were approved under the Governor's Smart Start Program.
Commissioner Pugh discussed the Offender's Supervision
Program. She explained that the program would allow another
level of incarceration in halfway houses to free 125 of the
existing community residential Center (CRC) beds.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kohring, Martin, Mulder,
Therriault, Hanley
Representative Kelly was absent from the vote.
The MOTION FAILED (3-7).
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Representative Kohring MOVED to ADOPT Amendments DCED-1
through DCED-5 (copy on file). He explained that the
amendments would transfer 5 positions in commerce and
economic development to other areas outside of the
department.
? Amendment DCED-1 would transfer a fish industry
trade specialist to the Alaska Seafood Marketing
Institute (ASMI).
? Amendment DCED-2 would transfer an industry trade
specialist to the Alaska Industrial Development
and Export Authority (AIDEA).
? Amendment DCED-3 would transfer a cultural trade
specialist to the Department of Community and
Regional Affairs.
? Amendment DCED-4 would transfer a mineral trade
specialist to the Department of Natural Resources.
? Amendment DCED-5 would transfer a forestry trade
specialist to the Department of Natural Resources.
Representative Kohring spoke in support of the transfers.
(Tape Change, HFC 98 - 112, Side 2)
Representative Kohring noted that Representative Cowdery
also worked on the proposal.
Representative Davies emphasized that the trade is the
primary focus of the positions. The secondary focus is
their area of specialty. He noted that they are in the
Department of Commerce and Economic Development to focus on
trade.
Representative Grussendorf emphasized that marketing is not
the only mission. He observed that the department works as
a conduit for people coming to the state to do business.
Representative Davis questioned if the Department of Natural
Resources has a marketing mission. Representative
Grussendorf emphasized that the Department of Natural
Resources supplies the raw data used in marketing.
Representative Kohring maintained that there would be
strength in numbers even if the functions differed.
Co-Chair Hanley explained that adoption of Amendments DCED
1-5 would fund the positions. Members could then vote
separately to retain the positions in the Department of
Commerce and Economic Development. There being NO
OBJECTION, Amendments DCED 1-5 were adopted.
Representative J. Davies spoke in support of retaining the
positions in the Department of Commerce and Economic
Development.
Representative Grussendorf questioned if ASMI would be in
the same category as other departments.
MARCO PIGNALBERI, STAFF, REPRESENTATIVE COWDERY spoke in
support of the transfers. He stressed that the intent is
that marketing positions be combined with personnel that
have the operational experience for the resource.
Representative Grussendorf stressed that the positions help
perspective buyers find a way to use the resource.
Representative Kohring maintained that productivity is not
at the desired level. The intent is to generate measurable
economic development.
Representative Grussendorf noted that the positions would be
transferred into departments that have had budget
reductions. He questioned if the positions would be
diffused by the reduction.
Co-Chair Hanley noted that the questioned as to whether the
positions would be retained in the Department of Commerce
and Economic Development would be divided.
Representative Grussendorf emphasized that ASMI is a quasi-
state entity.
Representative Davies MOVED to retain Amendment CED-1 in the
Division of Trade and Development, Department of Commerce
and Economic Development.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Mulder, Davies, Davis, Grussendorf, Foster
OPPOSED: Kohring, Martin, Kelly, Therriault, Hanley
The MOTION PASSED (6-5).
Representative J. Davies MOVED to retain Amendment DCED-2 in
the Department of Commerce and Economic Development.
Representative Grussendorf spoke in support of the
amendment. Representative Davies pointed out that AIDEA
analyzes economic feasibility. Marketing specialists are
advocates.
Representative Kohring stressed that measurable results have
not been seen under the current configuration.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Mulder, Davies, Davis, Grussendorf, Foster
OPPOSED: Kohring, Martin, Kelly, Therriault, Hanley
The MOTION PASSED (6-5).
Representative Kohring MOVED to retain Amendments DCED-4 and
DCED-5 in the Department of Commerce and Economic
Development. There being NO OBJECTION, it was so ordered.
Representative MOVED to ADOPT Amendment DCED-6A (copy on
file). Amendment 6A would transfer 6 full-time positions
for the Office of International Trade from the Department of
Commerce and Economic Development to the Office of the
Governor. It would also add $97.3 thousand general fund
dollars to the Alaska Tourism Marketing Council and
$transfer $50 thousand dollars from general funds to
statutory designated receipts. There being NO OBJECTION, it
was so ordered.
Representative Foster MOVED to return the positions from the
Office of the Governor to the Department of Commerce and
Economic Development. Representative Kohring spoke against
the amendment.
(Tape Change, HFC 98 -113, Side 1)
Mr. Pignalberi pointed out that the positions are partially
exempt.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf, Foster, Moses, Therriault
OPPOSED: Mulder, Davis, Kelly, Kohring, Martin, Hanley
The MOTION FAILED (5-6).
Representative Kohring MOVED to ADOPT Amendment DCED-7 (copy
on file). The amendment would add $50 million dollars to
the Department of Education for educational facilities
support from the Alaska Science and Technology Endowment
Fund; and add $50 for school debt service from the Alaska
Science and Technology Endowment Fund. He maintained that
the Alaska Science and Technology Endowments are not a
proper service of state government and should be provided by
private lending institutions.
Representative Martin spoke against the amendment. He
stressed the accomplishments of the Alaska Science and
Technology Endowment Fund.
Representative J. Davies noted that his wife is a recipient
of a grant under the Alaska Science and Technology Endowment
Fund (ASTF). He spoke against the amendment.
Representative Grussendorf emphasized that ASTF is an
important part of commerce and economic development.
A roll call vote was taken on the motion.
IN FAVOR: Davis, Kohring
OPPOSED: Davies, Foster, Grussendorf, Kelly, Martin, Moses,
Mulder, Hanley, Therriault
The MOTION FAILED (2-9).
Representative Davies WITHDREW Amendments DCED-8 and DCED-9
(copy on file).
Representative Davies MOVED to ADOPT Amendment DCED-10 (copy
on file). He explained that the amendment would change $120
thousand dollars in interagency receipts to general fund
dollars in the Commissioner's Office.
JEFF BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE AND
ECONOMIC DEVELOPMENT explained that the subcommittee
transferred funding from general fund to interagency
receipts in the Commissioner's Office.
Representative Kohring spoke in support of retaining the
interagency receipt funding source.
Representative Davies questioned if the funding is contained
in another area of the budget.
Mr. Bush observed that there was no additional authorization
in any of the other agency budgets to pay for the additional
charge. He maintained that the transfer represents an
unallocated reduction that would be spread throughout the
agencies. The charge would be for general administrative
services.
Representative Davies pointed out that interagency receipts
are not generally charged for general administrative
services.
A roll call vote was taken on the motion.
IN FAVOR: Grussendorf, Moses, Davies
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Therriault,
Hanley
Representative Mulder absent from the vote.
The MOTION FAILED (3-7).
Representative Davies MOVED to ADOPT Amendment DCED-11 (copy
on file). He explained that the amendment would restore a
$250 thousand dollar increment that was requested by the
Governor to help fisheries disaster relief in the Bristol
Bay/Kuskokwim area.
Representative Kohring spoke against the amendment.
Representative Grussendorf spoke in support of the
amendment.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Therriault, Hanley
Representatives Mulder and Martin were absent from the vote.
The MOTION FAILED (3-6).
Representative Davies MOVED to ADOPT Amendment DCED-12 (copy
on file). Amendment DCED-12 would add $200 thousand dollars
to the Division of Trade and Development. The money would
be used for development in Western Alaska.
Representative Kohring spoke against the amendment. He
pointed out that the Department of Community and Regional
Affairs is already performing some functions similar to what
the amendment would fund.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Therriault,
Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (3-7).
Representative Davies MOVED to ADOPT Amendment DCED-13 (copy
on file). Amendment DCED-13 would restore four positions.
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
COMMERCE AND ECONOMIC DEVELOPMENT explained that there were
two cuts. A reclassified assistant commissioner and three
administrative staff positions were eliminated. The
Divisions of Tourism and Trade and Development share the
three administrative staff positions. He emphasized that
the Administrative Division shares duties. The reclassified
assistant commissioner serves as a special project
coordinator in Anchorage. He stressed the importance of the
four positions.
Representative J. Davies noted the administrative positions
pay the bills and keep the books.
Representative Kohring observed that the staff were
eliminated as part of the plan to transfer trade specialist
positions. He acknowledged the need to retain some of the
staff but questioned if all were necessary. He suggested
that the three administrative staff positions be reinstated,
but that the special assistant position be eliminated.
Representative Kohring MOVED to amend Amendment DCED-13 to
appropriate $120.7 thousand dollars for 3 administrative
staff positions. There being NO OBJECTION, it was so
ordered. There being NO OBJECTION, Amendment DCED-13 was
adopted as amended.
Representative J. Davies WITHDREW Amendments DCED-14 and
DCED-15 (copy on file). He MOVED to ADOPT Amendment DCED-
16 (copy on file). Amendment DCED-16 would add $118.2
thousand dollars to the Division of Tourism for a tourism
director.
Representative Kohring spoke against the amendment. He
stressed that the subcommittee did not think that a director
was warranted. He suggested that one of the staff positions
act in a supervising capacity.
Representative J. Davies stressed that directors are
necessary to provide focus and direction.
Representative Kohring referred to a study that indicated
that the average director has 153 persons under their
supervision. This is approximately 10 times the number of
persons supervised by the current director of the Division
of Tourism.
Representative J. Davies emphasized that most of the
directors would have section chiefs under their supervision.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Hanley
Co-Chair Therriault was absent from the vote.
The MOTION FAILED (3-7).
Amendment DCED-17 was not offered.
Representative J. Davies MOVED to ADOPT Amendment DCED-18
(copy on file). The amendment would accept an increment for
an increased rate for Division of Information Services to
the Alaska Energy Authority. Representative Kohring stated
that he did not object to the amendment. There would be no
impact on general funds. There being NO OBJECTION, it was
so ordered.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
(Tape Change HFC 98- 113, Side 2).
Representative Kohring spoke to amendment DEC #3a. [Copy on
File]. He stated that the Subcommittee initially agreed it
was appropriate to delete funds from the Department, as they
believed that environmental groups were using the money.
Consequently, he submitted the amended version of the
proposed amendment. The Intent Language grew from these
concerns and would stipulate how the allocation should be
spent by listing priorities to disperse the pass-through
grants for water related research and water related
activities:
? Research projects assisting in remediation of
impaired water bodies;
? Government research projects to collect scientific
baseline data for use in agency decision making;
? Nongovernment scientific water data projects or
activities in collaboration with and approved by a
lead resource agency; or
? Water related permitting activities including
community involvement and public procedures.
Representative Grussendorf inquired what the dispersed
second sheet, listed as the Amendment to #3a related to.
[Copy on File].
MIKE KRIEBER, STAFF, REPRENTATIVE VIC KOHRING, explained
that was the amendment proposed to amend DEC #3a.
Representative Kelly clarified that the intent of the
amendment to DEC #3a was the same, although, the purpose was
different. Representative Kohring noted that the difference
was the dollar amount as authorized through the "319"
program.
Representative Grussendorf inquired if the $200 thousand
dollars in federal funding would be removed. Mr. Kriebar
replied that the recommendation was to delete $200 thousand
dollars to the FY99 grant funds.
Representative Kohring MOVED to adopt the Amendment to
Amendment DEC #3a. Representative J. Davies OBJECTED. He
stated that he did not understand the logic to the reduction
in federal receipts. Representative Kohring replied that
some of the federal money had been granted to questionable
organizations. Representative J. Davies pointed out that at
Subcommittee level, there was no indication of the way in
which the scientific collected data was being utilized to
slow development.
Representative Kelly stressed that the groups funded have
not been involved only in collecting scientific data.
Representative J. Davies challenged that statement. He
stressed that there has been no concrete example of any mis-
collection or improper use of that data. He suggested that
there be an audit performed verifying that information.
Co-Chair Therriault questioned the mechanism used to
determine if the grants were competitively bid. Mr. Krieber
noted that there is a request process and then the grants
and applications are made.
MICHAEL CONWAY, DIRECTOR, DIVISION OF AIR AND WATER QUALITY,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, commented that the
process for awarding the grants is a competitive process
that starts in the month of July with an RFP. He stated
that the Division organizes workshops in Kenai, Anchorage,
Fairbanks and Juneau, subsequent to the RFP participation.
This year, the Division has received proposals in the amount
of $1.3 million dollars.
Representative Mulder suggested that this was a waste of
money. He recommended that the funds be channeled into
research or advertising. Mr. Conway replied that education
is one of the aspects of the proposal. A work plan must be
submitted. These are federal funds and federal regulations.
Mr. Conway agreed that there could be means of improving the
projects. Perhaps a strategic plan, incorporating the
entire area would be more successful. He noted that if this
appropriation were continued to be funded in the budget, it
would improve how monies are disbursed.
Representative Kelly stressed that the State must be careful
as to how they are dividing State or federal dollars for
such programs. When this money is disbursed, it is
important that it be determined scientific. He pointed out
that many of the groups getting the funding are not
scientifically oriented. He believed that they are in the
business of furthering an agenda which reduces the State's
ability to develop resources.
Representative G. Davis commented that the Intent Language
could benefit the entire State. Mr. Krieber suggested that
with respect to redemption activities, Line #3 could be more
clearly worded to insert the word "restoration" prior to
"activities". Representative G. Davis added language to
Line #1, following "water bodies" adding "with emphasis".
He MOVED that language. There being NO OBJECTION, the
language was amended and adopted.
Representative Grussendorf MOVED that the amendment to DEC
Representative Kohring MOVED the Intent Language of the
amendment. There being NO OBJECTION, the intent was
adopted.
Representative Kohring MOVED the reduction of the federal
funds. Representative J. Davies OBJECTED.
A roll call vote was taken on the motion to delete the
federal funds.
IN FAVOR: Kohring, Martin, Mulder, Hanley
OPPOSED: Moses, J. Davies, G. Davis, Grussendorf,
Foster, Kelly, Therriault
The MOTION FAILED (4-7).
Co-Chair Hanley asked if there was objection to DEC #3a as
amended. There being NO OBJECTION, the amendment was
adopted.
Representative Kohring MOVED to adopt amendment DEC #4.
[Copy on File]. There being NO OBJECTION, it was adopted.
Representative J. Davies WITHDREW amendment DEC #5. [Copy
on File].
Representative J. Davies changed DEC #6 to read $11.4
thousand dollars, oil and hazardous funds. Representative
J. Davies MOVED to adopt amendment DEC #6. [Copy on File].
Representative Kohring OBJECTED to the amendment.
Representative J. Davies pointed out that the funds allow
the Department to deliver on site services for human
resource issue resolution, computer network installation,
maintenance and support, administrative training to ensure
staff compliance, development of cost recovery systems for
recovery of fees, federal receipts and response funds and
participation in Oil and Hazardous Substance preparedness
drills.
Representative Kohring replied that the funding was not
important, as there are fewer staff to be managed. The
staff has been reduced to 52 for FY99, with fewer traveling.
A roll call vote was taken on the motion.
IN FAVOR: Moses, J. Davies, Grussendorf, Foster
OPPOSED: Martin, Mulder, G. Davis, Kelly, Kohring,
Therriault, Hanley
The MOTION FAILED (4-7).
Representative J. Davies MOVED to adopt amendment DEC #7
without the general funds. [Copy on File]. Representative
Kohring OBJECTED.
Representative J. Davies explained that communication with
the general public is a critical element of the public
health and emergency response services in the Department.
Failure to communicate accurately and timely could result in
the loss of human life or property. The publication
specialist housed in the Division of Administrative Services
is responsible for external communications.
Representative Kohring countered that the Department already
has a public relations staff and that they do not need two
in that position.
(Tape Change HFC 98- 114, Side 1).
Mr. Krieber stated that the Drinking Water component staff
does the bulk of the public water system and public
notification work. Co-Chair Therriault asked clarification
why contaminated foods had been included in that section.
BARBARA FRANK, DIRECTOR, DIVISON OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, replied that this
position is funded by three funding sources because it deals
with a wide variety of issues which the Department needs to
communicate with to the public. This is not a public
relations position.
Representative G. Davis asked if the position would deal
with the "red tide" announcements. Ms. Frank acknowledged
that was one of the functions of the position.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Mulder, J. Davies, G. Davis,
Grussendorf, Foster, Kelly, Therriault
OPPOSED: Kohring, Martin
Representative Hanley was not present for the vote.
The MOTION PASSED (8-2).
Representative J. Davies changed the amount in DEC #8 to
$153.8 from the Alaska Drinking Water Fund. He MOVED to
adopt the amended DEC #8. [Copy on File]. Representative
Kohring OBJECTED.
Representative J. Davies explained that there was a
reduction on a one-time contractual increment request to
provide educational assistance such as brochures and videos
for homeowners on the proper maintenance of on-lot septic
systems. He stressed that proper maintenance of on-lot
septic systems is critical in preventing drinking water
contamination. Approximately 50% of homes outside Anchorage
rely on septic systems for proper sewage disposal.
Representative Kohring pointed out that in amendment DEC
purpose. Representative J. Davies disagreed that amount of
funding could adequately address the need. He advised that
there are several areas within the State which need this
assistance.
A roll call vote was taken on the motion.
IN FAVOR: Mulder, J. Davies, G. Davis, Grussendorf,
Foster, Kelly, Moses
OPPOSED: Kohring, Martin, Hanley, Therriault
The MOTION PASSED (7-4).
Representative J. Davies amended the funds in DEC #9,
deleting the $7.5 general fund and MOVED to adopt the
amended DEC #9. [Copy on File]. Representative Kohring
OBJECTED.
Representative J. Davies explained that the program receipt
transfer would provide the ability to increase annual
inspections of high-risk facilities. The transfer will
bring the inspection to an average of once every 18 months.
With the additional funds, the inspection frequency would be
once in 12 months.
Representative Kohring stated that the budget subcommittee
denied an increment proposed by the Administration, noting
that there is already adequate means to operate the program
and provide for the necessary inspection of the seafood and
sanitation. He noted that the Department has not requested
a position authorization and that there would be no
guarantee that the funds would be spent on that position.
Representative J. Davies interjected that these would
program receipts pay for inspections.
MICHELLE BROWN, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, responded that due to budget cuts last year,
the Department had some positions that went from full-time
to part-time. The requested money would restore those
positions. She stated that DEC currently inspects 1/3 to
1/2 of what the Food and Drug Administration (FDA)
recommends. Representative Kohring replied that the fees
could be passed on to the consumer by increasing the prices.
He noted that there are currently 30 positions in that
program.
Representative Grussendorf asked how many processors are
inspected. Commissioner Brown replied approximately 875.
A roll call vote was taken on the motion.
IN FAVOR: J. Davies, Grussendorf, Moses
OPPOSED: G. Davis, Foster, Kelly, Kohring, Martin,
Mulder, Hanley, Therriault
The MOTION FAILED (3-8).
Representative J. Davies WITHDREW amendments DEC #10 and DEC
Representative J. Davies requested to offer amendments DEC
Committee. [Copies on File].
He stated that DEC #20 was a decrement of general funds and
DEC #12 and DEC #13 are proposed ways to utilize the funds.
He asked to modify DEC #12 to $75 thousand general fund
dollars and DEC #13 to $125 thousand general fund dollars.
Representative Kohring OBJECTED. He stated that the staff
is adequately meeting the needs proposed in DEC #13. Mr.
Krieber explained that DEC #3a had added $25 thousand
dollars to the contractual item in solid waste to address
the computer data base needs.
Representative Kohring rejected the request to add $75
thousand dollars to the Drinking Water Fund. Representative
Kohring spoke to DEC #20. He supported the cut to facility
construction and operation in the amount of $200 thousand
dollars. He MOVED to amend DEC #20 and would direct the
$200 thousand dollar deletion to the Department of Public
Safety, Alaska State Troopers. The amendment to the
amendment would eliminate the adds recommended in DEC #12
and DEC #13 and instead would be used for the Department of
Public Safety.
Mr. Krieber explained that in DEC #3a, $237 thousand dollars
had been replaced for public water systems. Class C systems
are not subject to contaminate monitoring. He pointed out
that throughout the DEC budget, there are a lot of
contractual legal items and that the Department has
extensive legal costs.
Representative J. Davies asked that the Department respond
to the allegation that there was an inordinate amount of
legal fees being incurred. He pointed out that DEC has in
the past responded to legal maneuvers taken by citizens to
protect them. He recommended that if this is a serious
issue, there should be an audit undertaken followed by a
recommendation.
Ms. Frank explained that the $75 thousand dollars was a
split between the two programs. Some are fees for the
Installer Program, although, it does not cover the cost for
the entire program.
Commissioner Brown added that Class C systems do test for
contaminates. The attorney fees are not in the Drinking
Water Program, instead, they are from the Spill Prevention
and Response Program. She noted that the Department does
have to defend their employees sometimes. The Department of
Law also provides for the cost recovery work under the Oil
and Hazardous Response Fund.
Representative J. Davies spoke to DEC #13. Commissioner
Brown commented that last year with the cuts proposed,
Environmental Protection Agency (EPA) threatened to take
back the program. With the money left from the prior year,
DEC spent the year battling with EPA to retain primacy. She
stressed that with this proposed cut, last year's work would
be threatened. She added that Alaska has the second lowest
staff per landfill ratio of the western United States.
Representative J. Davies pointed out that with the addition
to DEC #3a, the Committee put $25 thousand dollars back into
the concern. He stated that the $125 thousand dollar
request in DEC #13, plus the amount added in DEC #3a, would
be the minimum to sustain a credible program. Co-Chair
Therriault agreed that the solid waste program is important
to his district, although, questioned the amount.
Representative Kohring WITHDREW the amendment which he had
proposed. Representative J. Davies WITHDREW his amendment
and replaced it with DEC #20, which would add to the
Department of Public Safety, Trooper detachment, funding in
the amount of $110 thousand dollars plus DEC #13 at $90
thousand dollars. Representative Martin OBJECTED. He
stated that he did not support raiding money from one
department to give to another.
A roll call vote was taken on the motion.
IN FAVOR: G. Davis, Foster, Grussendorf, Kelly,
Kohring, Moses, Mulder, J. Davies,
Therriault, Hanley
OPPOSED: Martin
The MOTION PASSED (10-1).
Representative J. Davies WITHDREW amendment DEC #12.
Representative J. Davies MOVED to adopt amendment DEC #14.
[Copy on File]. Representative Kohring OBJECTED.
Representative J. Davies stated that the amendment would
restore travel to directly help small businesses and
communities improve compliance and reduce operating costs
without enforcement consequences and/or penalties.
Representative Kohring responded that the Division has
adequate money to provide for the travel needs of eighteen
staffed employees. Representative J. Davies stated that
with fewer people, more travel money would be needed and
that the net cost is less but the service would be the same
with this increment.
A roll call vote was taken on the motion.
IN FAVOR: Grussendorf, Moses, J. Davies
OPPOSED: Foster, Kelly, Kohring, Martin, Mulder, G.
Davis, Hanley, Therriault
The MOTION FAILED (3-8).
Representative J. Davies WITHDREW amendments DEC #15, DEC
Representative J. Davies changed amendment DEC #18 to $567.9
thousand dollars, and MOVED to adopt DEC #18. [Copy on
File]. Representative Kohring OBJECTED.
Representative J. Davies explained that the increment would
restore the Response Fund for the Department's oversight of
cleanup for the Ketchikan Pulp Corporation (KPC) and Alaska
Pulp Corporation (APC) contaminated sites.
Co-Chair Therriault asked the Department if these funds were
expended, could costs be recovered. Commissioner Brown
stated they would. She added that both the sites had been
listed on EPA's super fund list; both communities requested
that the Department assume leadership in cleanup so that
they would not be placed with EPA. She added that both
sites are progressing well. The fee and billing schedule
was worked out with each community.
Representative Martin asked how many years has the State
spent on the closedown and clean up. He asked the projected
time until completion.
KIRK FREDERICKSSON, DIRECTOR, DIVISION OF SPILL PREVENTION
AND RESPONSE, DEPARTMENT OF ENVIRONMENTAL CONSERVATION,
replied that DEC has been in Sitka for 2.5 years and expects
for it to be cleaned up within the next year; the Department
has been working on KPC for 1.5 years and expects clean up
next year. The Department has radically condensed the time
proposed by EPA. He added that EPA also does cost recovery.
Mr. Krieber noted that the Department has focused on these
two services for contractual and that the work on
regulations is approaching completion.
(Tape Change HFC 98- 114, Side 2).
Ms. Frank clarified the numbers requested. She noted that
there is an increment in the proposed budget which is not a
Response Fund increment, but rather a 100% federal increment
for a voluntary clean-up program. The total budget is
approximately 50/50 for contaminated sites, federal and
response fund dollars. The reduction would be coming from
one of two sites, posing the least current public health
threat. Ms. Frank noted that there is a $400 thousand
dollar federal increment in the contaminated sites program.
The federal increment in the budget is not for this kind of
work; it is for a voluntary clean up program, a separate and
new initiative.
Co-Chair Therriault clarified that the federal money could
not be used for the KPC clean up. That money is a new
program for voluntary clean up. Mr. Fredericksson noted
that the voluntary clean-up program is for low and medium
priority sites with a known contaminate without a great
threat to groundwater and in which the Department can
provide guidance to the owner of the property to work with
their contractors.
Mr. Krieber stated that in the Subcommittee, it had been
approved to use the voluntary clean-up funds to offset staff
costs. Mr. Fredericksson commented that the Department's
plan was to use the voluntary clean-up program as a minimal
oversight program. It is not directed to be a large staff
program. Co-Chair Hanley asked if the Department could use
the federal funds to off set some current costs. Mr.
Fredericksson stated that they would not be able to do that.
A roll call vote was taken on the motion.
IN FAVOR: Grussendorf, Kelly, Martin, Moses, Mulder, J.
Davies, G. Davis, Foster, Therriault, Hanley
OPPOSED: Kohring
The MOTION PASSED (10-1).
HB 325 and HB 326 were HELD in Committee for further
consideration.
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