Legislature(1993 - 1994)
04/06/1994 08:35 AM 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
HB 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. HB 370 was HELD in Committee for further discussion. HOUSE BILL 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." Department of Public Safety 1 Co-Chair MacLean MOVED to adopt the Department of Public Safety's budget as amended by the House Finance Committee. There being NO OBJECTION, it was adopted. Department of Natural Resources Co-Chair Larson MOVED TO RESCIND previous action taken on Amendment #2. Representative Martin OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Grussendorf, Hoffman, MacLean, Larson. OPPOSED: Therriault, Brown, Hanley, Martin. Representatives Foster and Navarre were not present for the vote. The MOTION PASSED (5-4). Representative Hanley MOVED to adopt Amendment #2. Co-Chair Larson explained that if the Division of Agriculture's program is diluted, the emphasis on agriculture in Alaska will vanish. He emphasized that agriculture is a viable industry in the State. Discussion followed among Committee members regarding forest management and development and forestry and agricultural development within the State. NICO BUS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF NATURAL RESOURCES, noted that the merger of the Division of Agriculture and Forestry would be handled by assigning those functions to the Deputy Director, Division of Forestry. He added that the Division of Agriculture currently is at a critical point in development and should be given further consideration, as it is a viable $30 million dollar industry. Mr. Bus spoke in opposition to Amendment #2. A roll call vote was taken on the MOTION. IN FAVOR: Therriault, Brown, Hanley, Martin. OPPOSED: Foster, Grussendorf, Hoffman, Parnell, Larson, MacLean. Representative Navarre was not present for the vote. The MOTION FAILED (4-6). Co-Chair Larson advised that Amendment #3 would restore the program receipt authority which had been reduced by the Department of Natural Resources (DNR) Subcommittee. He 2 added that within the Governor's budget, $270.8 in general funds was transferred from the Division of Agriculture to other DNR divisions. In return, the Division of Agriculture was given $240.8 program receipt authority to compensate for that transferred money. JOHN CRAMER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, DIVISION OF AGRICULTURE, DEPARTMENT OF NATURAL RESOURCES, advised that the Division asks that they be allowed to request further funding from Legislative Budget and Audit Committee if needed revenues can not be generated. He added that currently a demand exists for the land and the Division wants the opportunity to pursue that interest. Representative Brown questioned the authority that sale of state assets be called program receipts explaining that program receipts occur when activities exist that generate fee receipts. Mr. Bus replied that the principle would be placed into the general fund and the interest would be used for the administration of that program. Representative Brown inquired how the agricultural disposal would affect the Point Hope project. Mr. Cramer explained that those agricultural parcel lands were originally Mental Health Trust lands. Each one of the parcels is currently involved in the mental health trust litigation. He added that when the litigation is settled, the Department would actively pursue disposing of those lands. Representative Brown disagreed with that recommendation. Representative Brown MOVED TO AMEND Amendment #3 deleting the program receipt funding and replacing it with general fund receipts. Representative Martin OBJECTED. Representative Brown advised that it would be inappropriate to sell state assets and refer to them as program receipts. Discussion followed among Committee members regarding the project and the use of program receipt funding. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman. OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson. Representatives MacLean and Navarre were not present for the vote. The MOTION FAILED (3-6). Co-Chair Larson MOVED to adopt Amendment #3. A roll call was taken on the MOTION. 3 IN FAVOR: Foster, Grussendorf, Martin, Larson. OPPOSED: Hanley, Hoffman, Parnell, Therriault, Brown. Representatives MacLean and Navarre were not present for the vote. The MOTION FAILED (4-5). Representative Martin MOVED to adopt the Department of Natural Resources' budget as amended by the House Finance Committee. There being NO OBJECTION, it was adopted. (Tape Change, HFC 94-106, Side 2). Department of Environmental Conservation Representative Brown MOVED TO RESCIND action taken on Amendment #6, explaining that if the move to rescind action is adopted, the funding source should be changed to the Exxon Valdez Settlement funds. Representative Brown indicated support from the Department for the proposed change. BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC), pointed out that last year, there was $5 million dollars allocated for research grants for clean up from oil spills. With the current language, funds are not available for the administration of those awards. The Department is requesting that $51.5 thousand dollars be earmarked to assist in the management of those grants. Representative Martin OBJECTED. Mr. Poe pointed out that the money allocated is both trust money and settlement money as provided in legislation from FY94, CS HB 183 (FIN). That legislation outlined how those funds were to be used. Co-Chair Larson asked if the funds would be reappropriated. Representative Therriault stated they would. MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE, advised that the funds in question are existing funds which have already been appropriated. There is no new settlement allocation. He indicated that the preferred approach would be consideration of the request as a reappropriation. Representative Brown WITHDREW THE MOTION TO RESCIND action. There being NO OBJECTION, the motion was withdrawn. Representative Brown MOVED to adopt Amendment #9 which would allow the Storage Tank Assistance Program to continue 4 administrative and technical assistance responsibilities. She added that $4.5 million dollars would be eliminated for this fiscal year for grant requests to private businesses, which would leave $1.5 million dollars for maintenance operations. JOHN BURNETT, EXECUTIVE DIRECTOR, UNDERGROUND STORAGE TANK PROGRAM, DIVISION OF SPILL PREVENTION & RESPONSE, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, provided the Committee with a summary sheet of actions taken by the subcommittee and the House Finance Committee. [Copy on file]. The Storage Tank Assistance Fund does not issue single grants for a complete project in any given year. The grants are distributed as "phase" projects which allows distribution for the greatest need during the year. Mr. Burnett added that the amount proposed by the DEC Subcommittee would not be enough to maintain the current clean-up grants. The Department is required to maintain ground water recovery systems which restore drinking water supplies throughout the State. There are not sufficient funds to address those concerns. Representative Martin recommended that large companies provide mutual effort grant matching. Mr. Burnett explained that the problem with some facilities is that the tanks are out of the ground and consequently, there is no revenue or income to pay back the loans until the necessary recovery systems are installed. These companies participate contributing 10% of the clean-up costs. Discussion followed among Committee members and Mr. Burnett regarding the priorities and base amount needed to continue on-going operations. Representative Brown advised that a funding source other than general funds should be considered and recommended adding a one cent tax to address those needs. Representative Therriault requested further consideration of Amendment #8. Co-Chair MacLean reminded the Committee that there was a $2 million dollar allocation request in the capital budget for above ground storage tanks. She added that additionally it would cost $5 million dollars per village to clean-up the above ground storage tanks. Representative Hoffman recommended that the appropriation be divided 50/50 for above and below ground tanks. Co-Chair MacLean MOVED to adopt the Department of Environmental Conservation's budget as amended by the House Finance Committee. Amendments #8 & #9 were HELD for further 5 consideration. There being NO OBJECTION, it was adopted. HB 370 was HELD for further consideration.
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