Legislature(1993 - 1994)

05/03/1994 08:35 AM FIN

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

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