Legislature(1993 - 1994)

03/29/1994 08:30 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL NO. 370                                                           
                                                                               
       "An  Act making  appropriations for  the operating  and                 
       loan  program  expenses  of  state  government  and  to                 
       capitalize funds; and providing for an effective date."                 
                                                                               
  PAUL FUHS, ACTING  COMMISSIONER, DEPARTMENT OF COMMERCE  AND                 
  ECONOMIC DEVELOPMENT discussed program  receipts.  He  noted                 
  that  three-fourths of the  department's budget is comprised                 
  of  program   receipt  authority.     He   noted  that   the                 
                                                                               
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  Subcommittee's  proposed  budget  represents  a  10  percent                 
  general fund reduction  for the  Department of Commerce  and                 
  Economic Development.  He estimated  the reduction at $800.0                 
  thousand dollars beyond the proposed House Majority cap.  He                 
  observed that there has been a $5.5 million dollar reduction                 
  over FY 93.                                                                  
                                                                               
  Representative Navarre MOVED  to ADOPT AMENDMENT 1  (copy on                 
  file).    Amendment 1  would  reinstate $130.0  general fund                 
  dollars  for  the  Alaska  Film  Office.   Co-Chair  MacLean                 
  OBJECTED.    She maintained  that  the Division's  staff can                 
  provided technical assistance to film companies.                             
                                                                               
  Representative Navarre maintained that every dollar invested                 
  in this component  achieves a 93 to  1 return.  A  roll call                 
  vote was taken on the MOTION to adopt AMENDMENT 1.                           
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative Navarre MOVED  to ADOPT AMENDMENT 2  (copy on                 
  file).    Amendment 2  would add  $1.5 million  general fund                 
  dollars for the Alaska Tourism Marketing Council.                            
                                                                               
  Co-Chair MacLean asserted that  the Subcommittee's reduction                 
  of  $3.0  million  dollars is  high.    She  MOVED to  AMEND                 
  Amendment  2  to  delete  "$1.5"  and insert  "1.0"  million                 
  dollars.  She noted that provisions contained in the ominous                 
  bill are aimed  at raising program receipts  through program                 
  fees in the Department of Commerce and Economic Development.                 
  Discussion  pursued  regarding   potential  fee   increases.                 
  Representative Martin OBJECTED to the motion to amend.                       
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,  Navarre,  Parnell,                 
                 Therriault, Foster, Hanley, MacLean, Larson                   
  OPPOSED:  Martin                                                             
                                                                               
  The MOTION PASSED (5-6).                                                     
                                                                               
  Representative Parnell MOVED to AMEND  Amendment 2 to change                 
  the funding source  from the  General Fund to  International                 
  Trade Offices.  Co-Chair MacLean spoke against the amendment                 
  to the amendment.  Commissioner Fuhs expressed opposition to                 
  the  amendment  to   the  amendment.    He   emphasized  the                 
  importance of the International Trade Offices.  He discussed                 
  funding  for international offices  through the  Division of                 
  Tourism.                                                                     
                                                                               
                                8                                              
                                                                               
                                                                               
  Representative Brown provided members with AMENDMENT 3 (copy                 
  on  file).   She  discussed  amendment  3 as  it  relates to                 
  amendment 2.  She observed that  amendment 3 would close the                 
  international trade offices in Japan, Korea and Taiwan.                      
                                                                               
  Representative   Martin   stressed    the   importance    of                 
  international trade.  Representative Grussendorf objected to                 
  the  amendment to amendment 2, to change the funding source.                 
  Co-Chair   MacLean   detailed  projects   promoted   by  the                 
  international trade offices.                                                 
                                                                               
  Representative Brown referred to newspaper accounts that the                 
  Tokyo  Office  has  stopped  providing assistance  to  small                 
  businesses  and  is   concentrating  almost  exclusively  on                 
  natural gas  marketing.   Commissioner  Fuhs disagreed  with                 
  Representative Brown's  assessment  of  the  Tokyo  office's                 
  promotion of Alaskan  products and businesses.   He detailed                 
  smaller projects supported by the international offices.  He                 
  maintained that 95 percent of the work done by international                 
  offices is on behalf of smaller projects.                                    
                                                                               
  A roll call vote was taken on the MOTION to add $1.0 million                 
  dollars to the  Alaska Tourism Marketing Council  and delete                 
  $696.0 thousand  dollars from the  Offices of  International                 
  Trade.                                                                       
                                                                               
  IN FAVOR: Therriault, Brown, Hoffman, Navarre, Parnell                       
  OPPOSED:  Grussendorf, Foster, Hanley, Martin, Larson                        
                 MacLean                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  A roll call vote was taken on  the MOTION to adopt AMENDMENT                 
  2 as amended to $1.0 million dollars.                                        
                                                                               
  IN FAVOR: Brown, Hoffman, Grussendorf, Navarre, MacLean                      
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 Larson                                                        
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative Brown  MOVED to  ADOPT AMENDMENT  3 (copy  on                 
  file).   Representative  Martin  OBJECTED.    Representative                 
  Brown  emphasized that  funding of  the International  Trade                 
  component is  a lower  priority than  the state's  mandatory                 
  obligations.                                                                 
                                                                               
  Co-Chair MacLean spoke  against amendment  3.   Commissioner                 
  Fuhs  noted  that  the  International  Trade  component  was                 
  reduced 25 percent by the House Finance Subcommittee.                        
                                                                               
                                                                               
                                9                                              
                                                                               
                                                                               
  Representative Parnell MOVED  to AMEND Amendment 3 to add an                 
  increment of $696.0  thousand dollars to the  Alaska Tourism                 
  Council.  Co-Chair MacLean  OBJECTED.  A roll call  vote was                 
  taken on the MOTION.                                                         
                                                                               
  IN FAVOR: Therriault, Brown, Hoffman, Navarre, Parnell                       
  OPPOSED:  Grussendorf, Foster, Hanley, Martin, Larson                        
                 MacLean                                                       
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative Brown observed that  amendment 3 would retain                 
  funding for the Anchorage International Trade Office.                        
                                                                               
  A roll  call vote was taken on the MOTION to adopt AMENDMENT                 
  3.                                                                           
                                                                               
  IN FAVOR: Hanley,  Hoffman,  Navarre,  Parnell,  Therriault,                 
                 Brown                                                         
  OPPOSED:  Grussendorf, Martin, Foster, MacLean, Larson                       
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Representative Navarre MOVED  to ADOPT AMENDMENT 4  (copy on                 
  file).  He  explained that amendment  4 would eliminate  the                 
  $125.0 increment  to the grants  line for rural  tourism and                 
  increase  the  Alaska Tourism  Marketing  Council by  $125.0                 
  thousand dollars.    He  observed that  this  was  the  only                 
  increment  in   the  Department  of  Commerce  and  Economic                 
  Development.  He  noted emphasized  that the Alaska  Tourism                 
  Marking Council supports tourism statewide.                                  
                                                                               
  Co-Chair  MacLean  OBJECTED.    She  noted that  the  Alaska                 
  Tourism   Marketing    Council   does    not   have    rural                 
  representation.                                                              
                                                                               
  (Tape Change, HFC 94-98, Side 1)                                             
                                                                               
  Commissioner Fuhs expressed  opposition to amendment 4.   He                 
  explained the functions of the rural tourism grant.                          
                                                                               
  Representative Navarre WITHDREW AMENDMENT 4.                                 
                                                                               
  Representative Brown  MOVED to  ADOPT AMENDMENT  5 (copy  on                 
  file).  She explained that amendment 5 would reduce personal                 
  services in AIDEA by $450.0 thousand dollars.  The amendment                 
  would eliminate two  of the four deputy  director positions.                 
  She emphasized the need to prioritize the budget.  She added                 
  that the $200.0 thousand dollar increment in the contractual                 
  line, for new feasibility studies  on energy resources would                 
  also be deleted.                                                             
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  Commissioner  Fuhs   stressed  that   the  deputy   director                 
  positions  represent  specialized  skills  in  finance   and                 
  project development.  He emphasized  that the positions help                 
  to  maintain a  high credit rating.   Discussion  pursued in                 
  regards to the feasibility studies.                                          
                                                                               
  A roll call vote was taken on the  MOTION to adopt AMENDMENT                 
  5.                                                                           
                                                                               
  IN FAVOR: Therriault, Brown                                                  
  OPPOSED:  Grussendorf,  Hoffman,  Navarre,  Foster,  Hanley,                 
                 Martin, Parnell, MacLean, Larson                              
                                                                               
  The MOTION FAILED (2-9).                                                     
                                                                               
  HB 370 was HELD in Committee for further discussion.                         

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