Legislature(1997 - 1998)

04/17/1998 03:36 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
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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