03/14/2007 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES

             SB  37-APPROP: BIOSCIENCE FACILITY UAF                                                                         
                                                                                                                              
CHAIR BETTYE DAVIS announced SB 37 to be up for consideration.                                                                  
                                                                                                                                
SENATOR  WILKEN,  sponsor  of  SB 37,  explained  that  the  bill                                                               
appropriates  $105   million  from   the  general  fund   to  the                                                               
University  of Alaska  (UA)  to design,  construct,  and equip  a                                                               
bioscience  facility (BIOS)  on  the UA  Fairbanks (UAF)  campus.                                                               
This is the  only new construction project for the  UA this year,                                                               
and  the  110,000  square  foot   building  will  house  research                                                               
laboratories, classroom, space,  and teaching labs, consolidating                                                               
current facilities. Each year the  UA generates over $130 million                                                               
in outside funds to support  research activities; construction of                                                               
BIOS will provide much-needed space for research expansion.                                                                     
                                                                                                                                
1:37:49 PM                                                                                                                    
                                                                                                                                
MARK HAMILTON, president  of the UA system, said that  it takes a                                                               
long time  to move a  concept to reality,  and the BIOS  idea was                                                               
first introduced  in 2002  through a general  order bond.  The UA                                                               
board of regents has termed  BIOS the most important construction                                                               
project currently underway.                                                                                                     
                                                                                                                                
1:39:55 PM                                                                                                                    
                                                                                                                                
BUCK  SHARPTON, Vice-chancellor  of  Research for  the UAF,  said                                                               
that  the building  is so  essential because  research activities                                                               
have  grown   by  75   percent  since  2000;   the  UAF   has  an                                                               
international   reputation  in   certain   fields  built   around                                                               
research,  and  BIOS  will  allow   the  UA  to  consolidate  its                                                               
activities.  He then  listed  services that  the  UA provides  to                                                               
Alaska, including  an Alaska Native Health  Center, and explained                                                               
how the school's laboratories are  currently out of date and must                                                               
be modernized. The new building  will also allow for expansion of                                                               
engineering and agricultural programs.                                                                                          
                                                                                                                                
1:43:52 PM                                                                                                                    
                                                                                                                                
SENATOR THOMAS asked for clarification  on the construction costs                                                               
of the BIOS facility.                                                                                                           
                                                                                                                                
MR. HAMILTON said that there's  a difference between construction                                                               
and final costs.                                                                                                                
                                                                                                                                
MR.  SHARPTON  said that  there  are  several components  to  the                                                               
construction,   including  extensions   and  outfitting   of  the                                                               
laboratories.                                                                                                                   
                                                                                                                                
SENATOR COWDERY asked if the project can be bonded.                                                                             
                                                                                                                                
MR.  SHARPTON  said  that  it's   possible,  but  it  would  mean                                                               
continuing delays  and resulting rises in  construction costs. He                                                               
commented that the  construction of the gas pipeline  will mean a                                                               
limited future ability  for building elsewhere in  the state, and                                                               
that  using a  bonding capacity  in the  years ahead  could cause                                                               
significant  issues. At  the very  least, some  phases should  be                                                               
done with non-bonded funding.                                                                                                   
                                                                                                                                
SENATOR COWDERY asked if design work  has been done, and what the                                                               
shelf life is for the plans.                                                                                                    
                                                                                                                                
MR.  SHARPTON  replied that  some  planning  has been  done,  and                                                               
should be usable for several years at least.                                                                                    
                                                                                                                                
SENATOR COWDERY asked how much has been spent on BIOS to date.                                                                  
                                                                                                                                
MR. HAMILTON  replied that the  UA has spent $22  million already                                                               
on  planning and  preparation. The  construction hasn't  yet been                                                               
funded.                                                                                                                         
                                                                                                                                
MR. SHARPTON  added that $1  million in non-state funds  has been                                                               
put into planning.                                                                                                              
                                                                                                                                
SENATOR  ELTON  asked  why  the  facility  would  be  located  in                                                               
Fairbanks and  not Anchorage, where many  applicable programs are                                                               
based.                                                                                                                          
                                                                                                                                
MR.  HAMILTON   replied  that  equal  excellence   is  needed  in                                                               
supporting  sciences as  well as  in major  fields, so  that even                                                               
programs very  involved in medicine  can't necessarily  support a                                                               
research facility.                                                                                                              
                                                                                                                                
MR.  SHARPTON said  that  health services  are  based heavily  on                                                               
research,  and  that  Anchorage  and  Juneau  campuses  are  more                                                               
attuned to application rather than research, like in Fairbanks.                                                                 
                                                                                                                                
1:53:26 PM                                                                                                                    
                                                                                                                                
SENATOR THOMAS asked which building will be replaced by BIOS.                                                                   
                                                                                                                                
MR.  SHARPTON replied  that the  Arctic Health  building will  be                                                               
replaced.                                                                                                                       
                                                                                                                                
1:54:49 PM                                                                                                                    
                                                                                                                                
SENATOR THOMAS  made a motion to  move SB 37 from  committee with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no objection, the motion carried.