Legislature(1993 - 1994)
05/03/1994 08:35 AM FIN
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HB 455 An Act making and amending operating and capital appropriations and ratifying certain state expenditures; and providing for an effective date. HB 455 was HELD in Committee for further consideration. HOUSE BILL 455 "An Act making and amending operating and capital appropriations and ratifying certain state expenditures; and providing for an effective date." Section 11 There being NO OBJECTION, Section #11 was adopted. Section 10 There being NO OBJECTION, Section #10 was adopted. Section 44 There being NO OBJECTION, Section #42 was adopted. Section #45-#48 There being NO OBJECTIONS, Sections #45-#48 were adopted. Amendment #4 Co-Chair MacLean expounded that the original amendment would not provide for the transfer of funds to the general fund. The new language provided in Amendment #4 would clarify that the original amendment was meant to be a net zero transaction. 3 Section #1 currently does not allow for the transfer of funds from the Education Facilities Maintenance and Construction Fund to the general fund. The amendment would address that situation. She added that the original amendment was flawed in that it made two appropriations from the same fund. Co-Chair MacLean MOVED to adopt the new Amendment #4 which would make a single appropriation from the funding source. Representative Brown interjected that there would be fourteen appropriations. Representative Hanley clarified that the new amendment would eliminate Section #1. Co-Chair MacLean stressed that the amendment would create a net zero transaction. There being NO OBJECTIONS, the new Amendment Amendment #10 Co-Chair MacLean WITHDREW Amendment #10. There being NO OBJECTION, it was withdrawn. Amendment #11 JIM AYERS, EXECUTIVE DIRECTOR, EXXON VALDEZ OIL SPILL TRUSTEE COUNCIL, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, explained that Section #2, Chapter 41, SLA 93, the Alyeska settlement funds appropriated $14.5 million dollars for docks and facilities in Tatitlik and Chenega. That appropriation was made with the understanding and need for the acquisition of oil spill response capability as well as providing those communities with docks. Subsequent to that, there was money from the restitution of Exxon funds that were appropriated for a variety of projects. Both of the funds would be subject to court order and would require that those funds not be considered as general fund dollars. They must be appropriated for the purposes outlined in the settlement. He added that Section 7, Chapter 79 would appropriate the interest earned on the $50 million dollars up to July 1st, 1994. The amendment proposes to appropriate the interest earned in a restitution fund which must be used for the purposes defined in the court decree for the establishment of maintenance and improvement fund for those two docks. Mr. Ayers added that the federal government would have no authority in the amendment except by court order. He emphasized that it was not within the jurisdiction of the federal government to inform the state how to spend their share of the restitutional funds, except as a matter of justice. Representative Martin felt the amendment would 4 require further scrutiny. Representative Foster MOVED to adopt Amendment #11. Representative Brown asked how long it would take to accumulate the necessary funds and if that appropriation would be continuing. Mr. Ayers understood that $40 million dollars remained in the balance of that account and that the amount would be a capital and continuing appropriation to DOTPF. Representative Brown MOVED to include Amendment 11 into Section #60, which would place it in the capital projects section of the legislation. Mr. Ayers agreed. Co-Chair MacLean OBJECTED. A roll call vote was taken on the MOTION to include it in Section 60. IN FAVOR: Brown, Foster, Hanley, Hoffman, Martin. OPPOSED: Parnell, Therriault, Grussendorf, MacLean, Larson. Representative Navarre was not present for the vote. The MOTION FAILED (5-5). Representative Martin OBJECTED to Amendment #11. A roll call vote was taken on the MOTION. IN FAVOR: Therriault, Brown, Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. OPPOSED: Martin. Representative Navarre was not present for the vote. The MOTION PASSED (9-1). Amendment #12 MEAD TREADWELL, DEPUTY COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC), summarized Amendment #12, a request for $250 thousand dollars which would cover a commitment made last year placing regional governments in the arctic and monitoring the network against radionuclides. Representative Hanley asked that a complete budget of that program be provided to the Committee. Mr. Treadwell briefed the Committee explaining that the project would work with the Alaska Air Space Development Corporation and the 5 University of Alaska in order to provide the capabilities in cooperation with federal projects currently underway. (Tape Change, HFC 94-153, Side 2). Representative Hoffman MOVED to adopt Amendment #12. Representative Parnell MOVED TO AMEND Amendment #12 by reducing the amount appropriated from $250 thousand dollars to $100 thousand dollars. Representative Brown OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Foster, Grussendorf, Hanley, Hoffman, Martin, Parnell, Therriault, Larson, MacLean. OPPOSED: Brown. Representative Navarre was not present for the vote. The MOTION PASSED (9-1). A roll call vote was taken on the MOTION to adopt Amendment IN FAVOR: Hanley, Hoffman, Parnell, Brown, MacLean. OPPOSED: Foster, Hanley, Martin, Therriault, Larson. Representative Navarre was not present for the vote. The MOTION FAILED (5-5). Amendment #13 Representative Grussendorf MOVED to adopt Amendment #13 which would provide the sum of $100 thousand dollars to the City of Wrangell as a grant for the Zimovia Highway water and sewer laterals. There being NO OBJECTIONS, it was adopted. Amendment #8 Representative Grussendorf MOVED to adopt Amendment #8 which would address concerns with the Alaska Pulp Corporation mill and forgiveness of the interest due on that loan to the State. Representative Martin OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Brown, Foster, Larson, MacLean. 6 OPPOSED: Hanley, Martin, Parnell, Therriault. Representative Navarre was not present for the vote. The MOTION PASSED (6-4). Section #11 & Amendment #14 Representative Hanley discussed Section #11's relationship to the Department of Health and Social Services as a request for expenditures of federal funding received for services provided to Medicaid recipients. Representative Hanley explained that he had worked with Senator Rieger, the Senate HESS Chair, and that they both had concerns with that request. Representative Hanley MOVED to incorporate Amendment #14 to Section #11. There being NO OBJECTION, it was adopted. Section #42 & Amendment #15 Representative Therriault pointed out a technical change needed in Amendment #15 which would insert "Regional" after "Fairbanks" and would then request funds for two water and sewer projects in Fairbanks. BOB POE, DIRECTOR, DIVISION OF ADMINISTRATION SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, stated that the situation in question was an eleven year old appropriation. At the time of the request, it was unclear if the projects were discretionary or a "Governor's requested". He added that a letter had been received by the Environmental Protection Agency (EPA) informing DEC to immediately take steps to upgrade the lab for drinking water tests. If this measure was not completed immediately, the DEC lab would become decertified for water testing. There are only twelve laboratories in Alaska, nine of which certify public drinking water systems. All of the nine depend on DEC's certification authority. Representative Therriault MOVED to adopt Amendment #15. Representative Brown OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Martin, Parnell, Therriault, Foster, Larson. OPPOSED: Hanley, Brown, Grussendorf, MacLean. Representatives Hoffman and Navarre were not present for the vote. 7 The MOTION PASSED (5-4). SUPPLEMENTAL BUDGET Co-Chair MacLean MOVED to incorporate the reappropriation recommendations into the supplemental budget. There being NO OBJECTION, it was adopted. NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, referenced Page 2, Section 9 (d) of the work draft dated 5/02/94 indicating an allocation resulting from a legal settlement with the Department of Environmental Conservation and addressing the waste water disposal proposal. There being NO OBJECTIONS to the changes recommended by Ms. Slagle, they were adopted. Section #56 & #57 Representative Martin noted that Section #56 would provide funds for an emergency structural roof repair to Aurora Elementary School, Anchorage for fiscal year ending June 30, 1994. Co-Chair MacLean MOVED to adopt work draft #8-GH2040\J, Cramer\Utermohle, dated 5/02/94 as the version before the Committee. There being NO OBJECTION, it was adopted. Representative Martin MOVED to incorporate Section #56 into CS HB 455 (FIN). Representative Brown mentioned that the federal government should be liable for the repairs proposed in Sections #56 & #57. There being NO OBJECTIONS to adopting Sections #56 & #57, they were adopted. Intertie - CVEA Representative Brown provided the Committee with an Amendment addressing concerns with the proposed intertie versus the Allison Lake power options. CHRIS ROSE, CO-CHAIR, ALASKA CITIZENS FOR RESPONSIBLE ENERGY DEVELOPMENT (ACRED), SUTTON, explained that ACRED is a citizens group formed to address the particular issue of the proposed intertie in the Glennallen & Sutton areas. He explained that last year, the Legislature appropriated $35 million dollars for the project contingent upon a feasibility study. Mr. Rose provided background information on the final feasibility study for the Sutton-Glennallen intertie. The study found that Allison Lake would be a better alternative 8 to the intertie for meeting Copper Valley Electrical Association's (CVEA) needs. Given that information, ACRED urged Committee members to reconsider funding for the intertie. REPRESENTATIVE HARLEY OLBERG warned that ACRED is concerned with the ascetic appearance of the project. He added that the Allison Lake project would cost $32 million dollars and would produce 10% percent of the power passing through the intertie. The project at Allison Lake would face problems with water turbidity. He voiced his support for the original project. Representative Brown asked if Representative Olberg had read the feasibility study provided for the intertie. Representative Olberg stated he had not and did not have 100% faith in such a study. (Tape Change, HFC 94-154, Side 1). Representative Brown MOVED to adopt the amendment. Representative Martin OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Larson. OPPOSED: Hoffman, Martin, Parnell, Therriault, Foster, Hanley, MacLean. Representative Navarre was not present for the vote. The MOTION FAILED (3-7). Amendment #16 Representative Brown MOVED to adopt Amendment #16 which would repeal the $15 million dollar appropriation made for the construction of the Whittier Road. Representative Foster OBJECTED. Representative Brown's motion was HELD pending for the next Committee meeting. Section #47 Ms. Slagle requested a technical language change to Section to pay grievance awards but instead to cover the costs for investigations. Co-Chair Larson MOVED to amend Section #47. There being NO OBJECTION, the language was changed to reflect this use for the appropriation. 9 HB 455 was HELD in Committee for further consideration.