Legislature(2005 - 2006)SENATE FINANCE 532

05/03/2005 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 187 AMERADA HESS INCOME; CAPITAL INCOME FUND TELECONFERENCED
Moved CSHB 187(FIN)(efd fld)Out Committee
+= SB 46 APPROP: CAPITAL BUDGET TELECONFERENCED
Heard & Held
+= SB 102 COASTAL MANAGEMENT PROGRAMS TELECONFERENCED
Moved CSSB 102(FIN) Out of Committee
*+ SB 192 SCHOOL CONSTRUCTION BOND REIMBURSEMENT TELECONFERENCED
Heard & Held
+ SB 22 MEDICAID COVERAGE FOR BIRTHING CENTERS TELECONFERENCED
Moved CSSB 22(FIN) Out of Committee
+ SB 78 SENIOR CARE PROGRAM TELECONFERENCED
Scheduled But Not Heard
+ SB 125 LICENSING MEDICAL OR CARE FACILITIES TELECONFERENCED
Moved CSSB 125(JUD) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 178 SPECIAL REQUEST LICENSE PLATES
Moved CSHB 178(STA) am Out of Committee
                                                                                                                                
     SENATE BILL NO. 46                                                                                                         
     "An Act making capital appropriations and appropriations to                                                                
      capitalize funds; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
This  bill  had  previously   been  heard  in  the  Senate   Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
9:16:44 AM                                                                                                                    
                                                                                                                                
Co-Chair Green noted that  a revised work draft, Version 24-GS1074\Y                                                            
was before the  Committee for consideration. Version  "Y" contains a                                                            
few changes as a result  of the Committee discussion on the previous                                                            
work draft,  Version 24-GS1074\G.  Ms. Blaisdell,  Co-Chair  Green's                                                            
capital budget  aide, would  explain the  changes to the  Committee.                                                            
Amendments  to Version  "Y" would  be addressed  when the  Committee                                                            
reconvened  at  approximately  4:00  P.M. this  afternoon.  To  that                                                            
point, she asked  that Committee Members provide amendments  by 3:00                                                            
P.M.                                                                                                                            
                                                                                                                                
GINGER BLAISDELL, Staff  to Senator Green, verified that the Version                                                            
"Y" work draft had been distributed.                                                                                            
                                                                                                                                
Co-Chair Wilken  moved to adopt committee substitute  Version "Y" as                                                            
the working document.                                                                                                           
                                                                                                                                
Co-Chair Green objected for explanation.                                                                                        
                                                                                                                                
Ms. Blaisdell explained  the changes contained in Version "Y". Pages                                                            
one through 74  include the individual agency requests  for projects                                                            
that  would be  typically  included in  a Capital  Budget.  Governor                                                            
Frank  Murkowski   originally  submitted   the  majority   of  those                                                            
requests.  She pointed  out that a  large component  of the  bill is                                                            
dedicated to named recipients  grants and grants to communities. The                                                            
majority  of  those  are requests  of  Legislators.  Some  of  those                                                            
requests  might be separately  included  under specific Departments                                                             
such as the Department of Transportation and Public Facilities.                                                                 
                                                                                                                                
Ms.  Blaisdell  characterized  pages 75  through  90 as  being  "the                                                            
contingent section" of  the bill that would finance SB 155 education                                                            
projects.  That  section would  be  unfunded  were SB  155  adopted;                                                            
however,  were SB  155  to fail,  its education  projects  would  be                                                            
funded from the general fund.                                                                                                   
                                                                                                                                
Ms. Blaisdell stated that  approximately $60,000,000 of Amerada Hess                                                            
interest earnings  would be appropriated to the projects  identified                                                            
in  Sec.  6  on  page  91.  There  is  also  an additional   section                                                            
pertaining  to the Capital Income  Account. However, she  noted that                                                            
that Account  must  be established  prior to  enacting the  language                                                            
included in Sec. 6.                                                                                                             
                                                                                                                                
Co-Chair  Green noted  that  the Capital  Income  Account, which  is                                                            
addressed  in  SB  187, would  be  heard  during  today's  Committee                                                            
meeting.                                                                                                                        
                                                                                                                                
Ms. Blaisdell  continued that  Sec. 7 on page  91 would provide  the                                                            
authorization  for  Legislative  Budget &  Audit and  other  general                                                            
provisions  that are  typically  included in  Capital Appropriation                                                             
Budgets.                                                                                                                        
                                                                                                                                
9:20:21 AM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  stated that language in Sec. 13 pages  93 through 106                                                            
would address  the supplemental appropriations that  were originally                                                            
presented in SB 97.                                                                                                             
                                                                                                                                
9:20:54 AM                                                                                                                    
                                                                                                                                
Ms. Blaisdell identified  that language in Sec. 13 differs from that                                                            
of the  previous version  of the bill. Sections  13(f) and  13(g) on                                                            
page  93  would  provide  two  appropriations  to  the  Division  of                                                            
Retirement  and Benefits,  Department  of Administration,  for  work                                                            
relating to SB 141.                                                                                                             
                                                                                                                                
9:21:27 AM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  informed the Committee that due to  a drafting error,                                                            
a correction must be made  in Sec. 20, page 96, lines 17 and 18. The                                                            
language reading  "the sum of $34,563,300  is appropriated  from the                                                            
general fund to  the Alaska Debt Retirement Fund"  should be deleted                                                            
from the bill.                                                                                                                  
                                                                                                                                
Ms.  Blaisdell  noted that  language  referring  to the  Alaska  Gas                                                            
Pipeline  appropriations  is located on  page 21  of the bill.  That                                                            
language would  mirror the language  contained in the previous  work                                                            
draft.                                                                                                                          
                                                                                                                                
Ms. Blaisdell  noted that language in Sec. 35, subsection  (d), page                                                            
106, lines  12 through  14, pertaining  to the  Expenditures  by the                                                            
Department of  Commerce, Community and Economic Development  for the                                                            
ratification  of the Qualified Trade  Association contract,  differs                                                            
from the language in the previous work draft.                                                                                   
                                                                                                                                
Ms. Blaisdell  stated  that Sec. 36,  pages 106  through 119,  would                                                            
begin the reappropriation  language in the bill. Any  appropriations                                                            
that might be lapsing would be addressed in this section.                                                                       
                                                                                                                                
9:23:35 AM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  noted that Sec. 52  pages 119 through 122,  beginning                                                            
with  the   Department   of  Administration,   would  also   address                                                            
reappropriations.  This language is  identical to the language  that                                                            
was forwarded in SB 97, the supplemental bill.                                                                                  
                                                                                                                                
Ms. Blaisdell  continued that  Sections 60  and 61, page 122,  would                                                            
pertain to  the provisions of the  Capital Income Fund. A  number of                                                            
calls and emails  were received "regarding the necessity  of having"                                                            
these  sections  in the  bill. Were  the  Capital Income  Fund  bill                                                            
adopted,  this provision must  be included,  as absent it,  existing                                                            
language would  mandate that the funds  go to Permanent Fund  rather                                                            
than the Capital Income Account.                                                                                                
                                                                                                                                
9:24:51 AM                                                                                                                    
                                                                                                                                
Co-Chair  Green understood  therefore  that this  language would  be                                                            
"null and void" were SB 187 to fail.                                                                                            
                                                                                                                                
Ms.  Blaisdell concurred.  This  concluded  the explanation  of  the                                                            
committee substitute.                                                                                                           
                                                                                                                                
Senator  Hoffman  asked  for  assistance   in  locating  the  agency                                                            
requests  for  $825,000  for the  Bethel  Courthouse;  the  $233,900                                                            
Department  of Health and Social Services  request for the  security                                                            
system  for  the Bethel  Youth  Facility;  the  one  million  dollar                                                            
Department of  Commerce, Community and Economic Development  request                                                            
for the Bethel  Learning Center; and the one million  dollar federal                                                            
receipt  request for  the Department  of Natural  Resources  coastal                                                            
wetlands grant. He asked  whether these or any other agency requests                                                            
might have been excluded in this version of the bill.                                                                           
                                                                                                                                
9:26:53 AM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  responded that the  Governor had originally  proposed                                                            
the use  of Amerada  Hess  bonds as  the funding  mechanism for  the                                                            
Bethel Courthouse project.  Due to the fact that the Legislature has                                                            
not passed  a bond bill,  efforts were made  to identify other  fund                                                            
sources to  support as many of the  Amerada Hess funded projects  as                                                            
possible.  No funds to  support the Bethel  Courthouse project  were                                                            
identified. She  stated that further review of the  funding relating                                                            
to  the  Department  of  Health  and  Social  Services  request  for                                                            
enhanced security  for the Bethel Youth facility would  be required.                                                            
                                                                                                                                
Senator Hoffman  pointed out that  the security needs of  the Bethel                                                            
Youth  Facility were  identified  by the  Department  of Health  and                                                            
Social Services as being its number one priority.                                                                               
                                                                                                                                
9:27:38 AM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  stated that  further review  of that funding  request                                                            
would be undertaken.                                                                                                            
                                                                                                                                
Ms. Blaisdell communicated  that no funds were identified to replace                                                            
the Amerada Hess funding to support the Bethel Learning Center.                                                                 
                                                                                                                                
Senator Hoffman  clarified that the original funding  for the Bethel                                                            
Learning Center was general funds                                                                                               
                                                                                                                                
Ms. Blaisdell  responded therefore,  that the  decision was  made to                                                            
not fund that  facility. Choices had to be made in  light of limited                                                            
general funds.                                                                                                                  
                                                                                                                                
9:27:58 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman asked  regarding the  decision to  exclude the  one                                                            
million  dollars  federal receipts  request  for the  Department  of                                                            
Natural Resources coastal wetlands grant.                                                                                       
                                                                                                                                
Ms. Blaisdell responded  that, while no State general funds would be                                                            
required, three similar  federally funded projects were removed from                                                            
the capital  budget.  The decision  to remove those  projects  was a                                                            
policy call, as  further understanding pertaining  to the use of the                                                            
land and the impact  that accepting those federal  funds might incur                                                            
on the Alaska Department  of Natural Resources and its management of                                                            
that land would be desired.                                                                                                     
                                                                                                                                
Senator Hoffman  requested that, at  some future point in  time, the                                                            
Department  of Natural Resources  could testify  in regards  to that                                                            
concern.  He ascertained  that absent this  endeavor, more  problems                                                            
could occur in these areas;  specifically in regards to land that is                                                            
held  privately.  Acquiring  land,  with  the  assistance  of  these                                                            
federal grants, could assist  in averting problems being experienced                                                            
with privately  held lands,  for example, with  the Chignik  Dip Net                                                            
Fishery.                                                                                                                        
                                                                                                                                
9:30:07 AM                                                                                                                    
                                                                                                                                
Co-Chair Green asked Senator  Hoffman whether he was a member of the                                                            
Committee's Natural Resources subcommittee.                                                                                     
                                                                                                                                
Senator Hoffman replied in the negative.                                                                                        
                                                                                                                                
9:30:19 AM                                                                                                                    
                                                                                                                                
Co-Chair Green recalled  that that subcommittee had raised questions                                                            
regarding  "the line  of command"  and other  procedures  associated                                                            
with this funding. Further information would be sought.                                                                         
                                                                                                                                
Senator Hoffman noted that,  based upon the forthcoming information,                                                            
an associated  amendment might be  developed. He requested  that the                                                            
Department of  Natural Resources be present to respond  to questions                                                            
in this regard.                                                                                                                 
                                                                                                                                
Co-Chair  Green reminded  the  Committee  that amendments  would  be                                                            
considered during the afternoon hearing on this bill.                                                                           
                                                                                                                                
9:31:22 AM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  requested  that amendments  be  submitted in  written                                                            
form rather than through telephonic or email communication.                                                                     
                                                                                                                                
Co-Chair Green  asked Ms. Blaisdell  whether the written  amendments                                                            
should be provided prior to the 4:00 PM hearing.                                                                                
                                                                                                                                
Ms.  Blaisdell   responded   that  that  would   be  welcome,   time                                                            
permitting.                                                                                                                     
                                                                                                                                
Senator  Hoffman  remarked   that  he  was  targeting  noon  as  his                                                            
amendment submittal deadline.                                                                                                   
                                                                                                                                
[NOTE: the  Version "Y"  committee substitute  was formally  adopted                                                            
after the following At Ease.]                                                                                                   
                                                                                                                                
Co-Chair Green ordered the bill HELD in Committee.                                                                              
                                                                                                                                
AT EASE 9:32:40 AM / 9:36:06 AM                                                                                             
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 46                                                                                                         
     "An Act making capital appropriations and appropriations to                                                                
      capitalize funds; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
The bill was again before the Committee.                                                                                        
                                                                                                                                
Co-Chair  Green removed  her  objection  to adopting  the  committee                                                            
substitute.                                                                                                                     
                                                                                                                                
There being no  further objection, Committee Substitute  Version "Y"                                                            
was adopted as the working document.                                                                                            
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                
[NOTE: Additional  action on  this bill was  conducted later  in the                                                            
meeting. See Time Stamp 5:00:22 PM.]                                                                                            
                                                                                                                                
9:36:22 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 46                                                                                                         
     "An Act making capital appropriations and appropriations to                                                                
      capitalize funds; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
The bill  was heard  earlier in the  meeting and  was held to  allow                                                            
Committee  members   to  prepare  amendments  to  the   Version  "Y"                                                            
committee substitute.                                                                                                           
                                                                                                                                
Amendment #1:  This amendment inserts  a new Alaska Native  Heritage                                                            
Center component  to the Grants to  Named Recipients (AS  37.05.316)                                                            
Budget Request  Unit (BRU) of the Department of Commerce,  Community                                                            
and Economic Development  on page 3, lines 30 and 31. This amendment                                                            
also appropriates $500,000 general funds to the component.                                                                      
                                                                                                                                
Senator Dyson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator Dyson  expounded on  the Alaska Native  Heritage Center  and                                                            
its displays depicting  "all the major cultural aboriginal groups in                                                            
Alaska."  The  Center is  utilized  for education  purposes  of  the                                                            
history and  heritage of Alaska's  first people. This funding  would                                                            
be utilized to upgrade  existing exhibits and construct new exhibits                                                            
to display artifacts  currently held in storage. He  understood this                                                            
funding had  been included  in the Governor's  FY 06 capital  budget                                                            
request.                                                                                                                        
                                                                                                                                
Co-Chair Green maintained her objection.                                                                                        
                                                                                                                                
5:02:13 PM                                                                                                                    
                                                                                                                                
Senator Olson  furthered that the  Center has received funding  from                                                            
private sources and that  the funding requested in this amendment is                                                            
necessary to complete the project.                                                                                              
                                                                                                                                
Co-Chair  Wilken commented  that the  Center is  a benefit.  However                                                            
when initially  funded, the intent  was expressed that the  facility                                                            
would be self-supporting.                                                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman, Senator Dyson, Senator Hoffman                                                                       
                                                                                                                                
OPPOSED: Co-Chair Green Co-Chair Wilken, Senator Stedman                                                                        
                                                                                                                                
ABSENT: Senator Bunde                                                                                                           
                                                                                                                                
The motion FAILED (3-3-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Amendment   #2:  This  amendment   inserts  a  new  Local   Boundary                                                            
Commission,  Chugiak   Eagle  River  Detachment  Study   (HD  [house                                                            
district]  17-18) component  to the Grants  to Named Recipients  (AS                                                            
37.05.316)  BRU  of  the  Department  of  Commerce,   Community  and                                                            
Economic  Development on  page 3,  lines 30 and  31. This  amendment                                                            
also appropriates $50,000 general funds to the component.                                                                       
                                                                                                                                
Senator Dyson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator Dyson explained  that the community of Eagle River wished to                                                            
organize but  need a study conducted  to determine whether  it would                                                            
be economically viable.  An analysis was conducted the previous year                                                            
but the funding  was insufficient to provide a complete  assessment.                                                            
                                                                                                                                
5:05:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Green asked the legislators requesting this.                                                                           
                                                                                                                                
Senator Dyson  listed himself, Representative Bill  Stoltze, Senator                                                            
Con Bunde and Representative Mike Hawker.                                                                                       
                                                                                                                                
Co-Chair  Green  asked the  amount  of funding  remaining  from  the                                                            
earlier effort.                                                                                                                 
                                                                                                                                
Senator Dyson answered $25,000.                                                                                                 
                                                                                                                                
Co-Chair Green commented against the additional allocation.                                                                     
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Dyson, Senator Hoffman, and Senator Olson                                                                     
                                                                                                                                
OPPOSED: Senator Stedman, Co-Chair Wilken, and Co-Chair Green                                                                   
                                                                                                                                
ABSENT: Senator Bunde                                                                                                           
                                                                                                                                
The motion FAILED (3-3-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
5:06:54 PM                                                                                                                    
                                                                                                                                
Amendment #3: This amendment  inserts a new Arctic Winter Games Team                                                            
Alaska component  to the Grants to  Named Recipients (AS  37.05.316)                                                            
BRU  of  the   Department  of  Commerce,   Community  and   Economic                                                            
Development  on  page  3,  lines 30  and  31.  This  amendment  also                                                            
appropriates $250,000 general funds to the component.                                                                           
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator Olson  described the international competition  comprised of                                                            
contestants from urban and rural communities.                                                                                   
                                                                                                                                
AT EASE: 5:07:56 PM / 5:08:35 PM                                                                                            
                                                                                                                                
Co-Chair Green  noted the two groups seeking funding  for the Games.                                                            
She  asked  whether   this  amendment  would  provide   funding  for                                                            
preparations to  hold the event in Kenai or for expenses  associated                                                            
with the team representing the State.                                                                                           
                                                                                                                                
Senator  Olson answered  that this  money would  support the  Alaska                                                            
team itself.                                                                                                                    
                                                                                                                                
Co-Chair  Green commented that  a request for  this purpose  had not                                                            
been submitted earlier.                                                                                                         
                                                                                                                                
Co-Chair  Wilken agreed  that  no representative  of  the Games  had                                                            
approached the  legislature prior to this. He would  not support the                                                            
amendment, as more effort should have been made.                                                                                
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman, Senator Olson, and Senator Dyson                                                                     
                                                                                                                                
OPPOSED: Co-Chair Wilken, Senator Stedman, and Co-Chair Green                                                                   
                                                                                                                                
ABSENT: Senator Bunde                                                                                                           
                                                                                                                                
The motion FAILED (3-3-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Amendment  4A:  This  amendment  inserts   a  new African   American                                                            
Historical  Society Juneteenth Celebration  component to  the Grants                                                            
to  Named  Recipients  (AS  37.05.316)  BRU  of  the  Department  of                                                            
Commerce,  Community and Economic  Development  on page 3,  lines 30                                                            
and 31. This  amendment also appropriates  $30,000 general  funds to                                                            
the component.  Accompanying explanatory language  reads as follows.                                                            
                                                                                                                                
     This would  help fund the capital costs for the  celebration of                                                            
     Juneteenth.  The grant  would  provide funding  for the  tents,                                                            
     shelters,  display  units,  exhibits,  equipment  and  supplies                                                            
     necessary to continue  their educational objectives during this                                                            
     public outreach celebration.                                                                                               
                                                                                                                                
This amendment  also reduces the appropriation to  the Department of                                                            
Commerce,   Community   and   Economic   Development,    Grants   to                                                            
Municipalities  (AS 37.05.315) BRU,  Muldoon Road, Tudor  Road Sound                                                            
Barrier  Fence (HD 17-32)  component on  page 24,  lines 3 -  6 from                                                            
$600,000  general  funds to  $590,200  general  funds. Accompanying                                                             
explanatory language reads as follows.                                                                                          
                                                                                                                                
     This project will construct a sound barrier fence between a                                                                
     major arterial street and local neighborhoods. (Project design                                                             
      has been funded and construction could occur in 2005.)                                                                    
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator  Hoffman  explained  that the  African  American  Historical                                                            
Society hosts  the Juneteenth Celebration  on the third Saturday  in                                                            
June to commemorate  the abolition of slavery in the  United States.                                                            
This event has been celebrated in Anchorage for 30 years.                                                                       
                                                                                                                                
5:12:20 PM                                                                                                                    
                                                                                                                                
Senator Hoffman  continued  that the Society  exists to promote  and                                                            
preserve  the historical  recognition  and  culture  of the  African                                                            
Americans living in Alaska.                                                                                                     
                                                                                                                                
Co-Chair Green maintained her objection.                                                                                        
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Stedman, Senator  Dyson, Co-Chair Wilken,  and Co-                                                            
Chair Green.                                                                                                                    
                                                                                                                                
ABSENT: Senator Bunde                                                                                                           
                                                                                                                                
The motion FAILED (2-4-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
5:14:24 PM                                                                                                                    
                                                                                                                                
Amendment 4B:  This amendment inserts a new Russian  Jack Elementary                                                            
School Computer  & Library Book Purchase component  to the Grants to                                                            
Named Recipients  (AS 37.05.316) BRU of the Department  of Commerce,                                                            
Community and Economic  Development on page 3, lines 30 and 31. This                                                            
amendment also appropriates  $20,000 general funds to the component.                                                            
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     This funding  would be used to purchase Apple  eMacs to replace                                                            
     older machines,  which cannot run today's powerful  educational                                                            
     software. This would  also be utilized for the purchase of more                                                            
     books and materials to upgrade their library collection.                                                                   
                                                                                                                                
Senator Hoffman  moved for adoption  and overviewed the explanation                                                             
statement.                                                                                                                      
                                                                                                                                
There being no objection, the amendment was ADOPTED.                                                                            
                                                                                                                                
AT EASE: 5:14:48 PM / 5:15:07 PM                                                                                            
                                                                                                                                
5:15:43 PM                                                                                                                    
                                                                                                                                
Amendment #5:  This amendment increases the general  fund allocation                                                            
to the Department  of Commerce, Community and Economic  Development,                                                            
Grants  to  Named Recipients  (AS  37.05.316)  BRU,  Alaska  Siberia                                                            
Research  Center,   Inc.  -  Alaska   Siberia  WWII  Memorial   Park                                                            
Construction  (HD  7-11) component  on  page 4,  lines 8  - 11  from                                                            
$40,000  to $65,000.  Accompanying  explanatory  language  reads  as                                                            
follows.                                                                                                                        
                                                                                                                                
     In the 5/2/05 work draft Version "F" there was $65,000                                                                     
     appropriated to the project which funds the Lend Lease                                                                     
     Memorial Park project.                                                                                                     
     In the 5/3/05 work draft Version "Y" this funding was reduced                                                              
     to $40,000 due to a technical drafting error by the                                                                        
     legislative finance division. This amendment simply corrects                                                               
     this drafting omission.                                                                                                    
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green objected for an explanation.                                                                                     
                                                                                                                                
Co-Chair Wilken  explained the drafting  error this amendment  would                                                            
correct.                                                                                                                        
                                                                                                                                
Without further objection, the amendment was ADOPTED.                                                                           
                                                                                                                                
5:17:01 PM                                                                                                                    
                                                                                                                                
Amendment #6:  This amendment increases the general  fund allocation                                                            
to the Department  of Commerce, Community and Economic  Development,                                                            
Grants to Named  Recipients (AS 37.05.316) BRU, Mary  Magdalene Home                                                            
Alaska, Inc.  - Transitional Housing  Program Facilities  (HD 17-32)                                                            
on page 6 lines 30 - 33 from $250,000 to $263,500.                                                                              
                                                                                                                                
Senator Dyson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Green objected for an explanation.                                                                                     
                                                                                                                                
Senator Dyson  reminded that when the decision was  made to not fund                                                            
a separate  project, $13,000  remained unallocated.  This  amendment                                                            
would appropriate  that amount to  the Mary Magdalene Home  project.                                                            
                                                                                                                                
Co-Chair Green asked if  this addition would bring the total funding                                                            
to the "discretionary amount" requested.                                                                                        
                                                                                                                                
Senator Dyson  replied that it would  not, as the $250,000  proposed                                                            
appropriation is $50,000 less than requested.                                                                                   
                                                                                                                                
There being no further objection, the amendment was ADOPTED.                                                                    
                                                                                                                                
5:18:21 PM                                                                                                                    
                                                                                                                                
Amendment #7:  This amendment increases the general  fund allocation                                                            
to the Department  of Commerce, Community and Economic  Development,                                                            
Grants  to  Named  Recipients  (AS  37.05.316)   BRU,  Midnight  Sun                                                            
Council, Boy  Scouts of America -  Boy Scout Food Service  component                                                            
on  page  7 lines  3  - 6  from  $40,000  to $60,000.  Accompanying                                                             
explanatory language reads as follows.                                                                                          
                                                                                                                                
     In the 5/2/05 work draft Version "F" there was $80,000                                                                     
     appropriated to the project.                                                                                               
     In the 5/3/05  work draft Version "Y" this funding  was reduced                                                            
     to  $40,000   due  to  a  technical   drafting  error   by  the                                                            
     legislative  finance division.  This amendment simply  corrects                                                            
     this drafting omission.                                                                                                    
                                                                                                                                
Co-Chair  Wilken moved  for adoption  and outlined  the explanatory                                                             
statement.                                                                                                                      
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
5:18:57 PM                                                                                                                    
                                                                                                                                
Amendment  #8:  This   amendment  inserts  a  new  Municipality   of                                                            
Anchorage  -  Anchorage  School  District/Eagle  River  High  School                                                            
Traffic Control  & Turn  Lanes (Veterans  Memorial Highway)  (HD 16-                                                            
18,32) component to the  Grants to Municipalities (AS 37.05.315) BRU                                                            
of the Department  of Commerce, Community  and Economic Development                                                             
on  page 8,  lines  11  and 12.  This  amendment  also appropriates                                                             
$950,000 general funds to the component.                                                                                        
                                                                                                                                
Senator Dyson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator Dyson  informed that the allocation for this  project should                                                            
be to the Department of  Transportation and Public Facilities rather                                                            
than the Municipality of  Anchorage. This project would be necessary                                                            
once the  high school  is constructed,  as the  current road  system                                                            
would be "very dangerous".                                                                                                      
                                                                                                                                
Co-Chair Green asked the location of the proposed project.                                                                      
                                                                                                                                
Senator Dyson  described the location  of the school located  in the                                                            
election district represented by Senator Bunde.                                                                                 
                                                                                                                                
Co-Chair Green  asked if this project  could be included  in another                                                            
project planned for the Veterans' Memorial Highway.                                                                             
                                                                                                                                
Senator Dyson replied it  could not, as the other project is located                                                            
north of this location.                                                                                                         
                                                                                                                                
5:21:45 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  asked the reason this  funding request had  not been                                                            
submitted earlier.                                                                                                              
                                                                                                                                
Senator  Dyson   attributed  the  delay  to  the  number   of  other                                                            
Department of  Transportation and Public Facilities  project funding                                                            
requests.                                                                                                                       
                                                                                                                                
Co-Chair  Green  removed  her  objection  to  the  adoption  of  the                                                            
amendment  with the  understanding that  the exact  location of  the                                                            
proposed project is specified in the legislation.                                                                               
                                                                                                                                
Co-Chair  Green offered  a friendly  amendment to  the amendment  to                                                            
appropriate  the funding  to the  Department  of Transportation  and                                                            
Public Facilities and make necessary conforming changes.                                                                        
                                                                                                                                
There  being  no objection   from the  sponsor,  the  amendment  was                                                            
AMENDED.                                                                                                                        
                                                                                                                                
Without further objection Amendment #8, as amended, was ADOPTED.                                                                
                                                                                                                                
AT EASE 5:23:55 PM / 5:24:33 PM                                                                                             
                                                                                                                                
Amendment  #9: This  amendment  inserts a  new Bristol  Bay  Borough                                                            
Community   Matching   Project    component   to   the   Grants   to                                                            
Municipalities  (AS 37.05.315)  BRU of the  Department of  Commerce,                                                            
Community and Economic  Development on page 8, lines 11 and 12. This                                                            
amendment   also  appropriates   $150,000   general  funds   to  the                                                            
component.                                                                                                                      
                                                                                                                                
This amendment also increases  the general fund appropriation to the                                                            
Department of  Commerce, Community and Economic Development,  Grants                                                            
to  Municipalities  (AS 37.05.315)  BRU,  City  of Unalaska  -  Boat                                                            
Harbor (HD  37) component on page  13 lines 3 and 4 from  $2 million                                                            
to $4 million.                                                                                                                  
                                                                                                                                
This amendment also adds  a new Togiak/Twin Hills Bridge Feasibility                                                            
Study  component  to the  Department  of Transportation  and  Public                                                            
Facilities   and  appropriates   $150,000   general  funds   to  the                                                            
component.                                                                                                                      
                                                                                                                                
This amendment also increases  the allocation to the Cold Bay Access                                                            
Improvements  (HD  37)  component  of  the  Surface  Transportation                                                             
Improvements   BRU,   Department   of  Transportation   and   Public                                                            
Facilities,  on page 58,  lines 30  and 31 from  $2 million  to $2.5                                                            
million.                                                                                                                        
                                                                                                                                
This amendment  also increases  the general  fund allocation  to the                                                            
Department of  Education and Early Development, School  Construction                                                            
Grant  Fund  (AS  14.11.005)  BRU,  Dillingham  Middle/High   School                                                            
construction  and  renovation  - Dillingham   City Schools  (HD  38)                                                            
component on page 83 lines  14 - 17 from $7 million to $9.5 million.                                                            
                                                                                                                                
Co-Chair Green moved for adoption.                                                                                              
                                                                                                                                
Co-Chair Green  then offered a friendly  amendment to the  amendment                                                            
to  change   "Bristol  Bay  Borough   Community  Matching   Project"                                                            
component to read  "Bristol Bay Borough Community  Mapping Project."                                                            
                                                                                                                                
This amendment  to the  amendment also  deletes additional  $500,000                                                            
general  fund  allocation  to  the  Cold  Bay  Access  Improvements                                                             
component.                                                                                                                      
                                                                                                                                
This  amendment to  the amendment  also  adds a  new Aleutians  East                                                            
Borough  - Cold  Bay Airport  Terminal  component to  the Grants  to                                                            
Municipalities   (AS  37.05.315)   BRU,  Department   of   Commerce,                                                            
Community  and  Economic   Development  and  appropriates   $500,000                                                            
general funds to the component.                                                                                                 
                                                                                                                                
AT EASE 5:25:29 PM / 5:26:20 PM                                                                                             
                                                                                                                                
Co-Chair Green  continued to outline  the friendly amendment  to the                                                            
amendment.                                                                                                                      
                                                                                                                                
Without objection the amendment was AMENDED.                                                                                    
                                                                                                                                
Senator  Stedman  objected  to the  amended  amendment  for  further                                                            
information on the City of Unalaska - Boat Harbor component.                                                                    
                                                                                                                                
Co-Chair Green  informed that upon review, this amount  was included                                                            
in an earlier committee substitute.                                                                                             
                                                                                                                                
Co-Chair Wilken  asked whether the  project expansion of  the Little                                                            
South America Boat Harbor.                                                                                                      
                                                                                                                                
Senator Hoffman understood it was.                                                                                              
                                                                                                                                
Co-Chair  Green  noted  the  Members  have  discussed  this  project                                                            
previously.                                                                                                                     
                                                                                                                                
There being no objection, Amendment #9 as amended was ADOPTED.                                                                  
                                                                                                                                
5:28:10 PM                                                                                                                    
                                                                                                                                
Amendment  #10: This amendment  adds a LKSD  - The Peoples  Learning                                                            
Center  component  to the  Department  of  Commerce,  Community  and                                                            
Economic Development  [BRU not specified] and appropriates  $100,000                                                            
general funds  to the component. Accompanying  explanatory  language                                                            
reads, "Restores  the Governor's original  capital budget  request."                                                            
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Senator Hoffman reminded  the Committee of the residential technical                                                            
education facility  located in Bethel.  The amount of secured  funds                                                            
for  this  project  total  $15  million.  Approximately  $4  million                                                            
additional  funding is needed, although  funding sources  of most of                                                            
the amount have been identified.  This project is a collaboration of                                                            
the City  of Bethel,  the Yukon-Kuskokwim  Health  Corporation,  the                                                            
Association   of   Village   Council   Presidents,    the   Chalista                                                            
Corporation, the  Alaska National Guard, the Lower  Kuskokwim School                                                            
District, the  University of Alaska  Kuskokwim Campus, the  Regional                                                            
Housing Authority, and the Coastal Village Regional Fund.                                                                       
                                                                                                                                
5:29:45 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  informed the Committee  that this item was  included                                                            
in the Governor's proposed budget.                                                                                              
                                                                                                                                
There was no objection and Amendment #10 was ADOPTED.                                                                           
                                                                                                                                
5:30:19 PM                                                                                                                    
                                                                                                                                
Amendment #11:  This amendment deletes the City of  Hope - Community                                                            
Safety  and  Development  (HD  17-32) component   of the  Grants  to                                                            
Municipalities   (AS  37.05.315)   BRU,  Department   of   Commerce,                                                            
Community  and  Economic   Development  and  $25,000   general  fund                                                            
appropriation on page 10, lines 18 - 20.                                                                                        
                                                                                                                                
This amendment also inserts  a new Hope, Inc. - Community Safety and                                                            
Development (HD  17-32) component to the Grants to  Named Recipients                                                            
(AS 37.05.316)  BRU  in the Department  of Commerce,  Community  and                                                            
Economic Development  and appropriates $25,000 general  funds to the                                                            
component.                                                                                                                      
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The  original   request  was  made  to  "Hope,  Inc.".   During                                                            
     drafting,  the name was changed to "City of Hope"  and moved to                                                            
     "Grants  to Municipalities.  After discussion  with the  grants                                                            
     administrator  at  the  Division  of  Community  Advocacy,  the                                                            
     original  name "Hope,  Inc.) was determined  to be the  correct                                                            
     one.                                                                                                                       
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green overviews the explanatory statement.                                                                             
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
5:31:01 PM                                                                                                                    
                                                                                                                                
Amendment  #12: This  amendment  changes the  title of  the City  of                                                            
Homer - Homer  Public Library Materials  component of the  Grants to                                                            
Municipalities  BRU, Department of Commerce, Community  and Economic                                                            
Development  on page 10, lines  13 - 15 to  "City of Homer  - Public                                                            
Library Construction".  The $100,000 general fund appropriation does                                                            
not change.                                                                                                                     
                                                                                                                                
Co-Chair  Green  moved  for  adoption  and  explained  the  language                                                            
correction.                                                                                                                     
                                                                                                                                
There being no objection, Amendment #12 was ADOPTED.                                                                            
                                                                                                                                
AT EASE 5:31:41 PM / 5:31:41 PM                                                                                             
                                                                                                                                
Amendment #13: This amendment  deletes the Denali Borough - Anderson                                                            
School/Septic  Leach Field Replacement  (HD 7-11) component  and the                                                            
Denali Borough  - Cantwell School/Sprinkler System  Fire Upgrade and                                                            
New Well (HD  7-11) component of the  Grants to Municipalities  BRU,                                                            
Department of  Commerce, Community and Economic Development  on page                                                            
10, lines 17 - 23.                                                                                                              
                                                                                                                                
This amendment also increases  the general fund appropriation to the                                                            
Alaska Siberia Research  Center, Inc. - Alaska Siberia WWII Memorial                                                            
Park  Construction  (HD  7-11)  component  of the  Grants  to  Named                                                            
Recipients  BRU,  Department  of Commerce,  Community  and  Economic                                                            
Development on page 4, lines 8 - 11 from $40,000 to $105,200.                                                                   
                                                                                                                                
This amendment also increases  the general fund appropriation to the                                                            
Morris  Thompson   Cultural  and  Visitors  Center  -  Construction                                                             
component  of the  Grants  to Named  Recipients BRU,  Department  of                                                            
Commerce, Community  and Economic Development on page  7, lines 11 -                                                            
13 from $200,000 to $300,000.                                                                                                   
                                                                                                                                
This amendment also inserts  a new Ester - Volunteer Fire Department                                                            
component  to the  Grants  to Named  Recipients BRU,  Department  of                                                            
Commerce,  Community  and  Economic  Development   and appropriates                                                             
$125,000 general funds to the component.                                                                                        
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     Partial  funding  for the  Anderson School/Septic  Leach  Field                                                            
     Replacement  and  the  Cantwell  School/Sprinkler  System  Fire                                                            
     Upgrade  and New Well projects  totals $260,200 are  deleted in                                                            
     this amendment.                                                                                                            
     Full funding for these two projects are contained on page 77,                                                              
     lines 24 - 31 of the work draft.                                                                                           
     This amendment reallocates the $260,200 to the following three                                                             
     projects:                                                                                                                  
          Alaska Siberia Research Center           $ 35,200                                                                     
          Morris Thompson Cultural Center           100,000                                                                     
          Ester Volunteer Fire Department           125,000                                                                     
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Co-Chair  Wilken overviewed  the amendment,  which  he sponsored  on                                                            
behalf of  Senator Ralph  Seekins. This amendment  would have  a net                                                            
zero impact.                                                                                                                    
                                                                                                                                
AT EASE 5:32:34 PM / 5:32:57 PM                                                                                             
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
5:33:21 PM                                                                                                                    
                                                                                                                                
Amendment  #14:  This  amendment  changes  the title  of  the  Kenai                                                            
Peninsula  Borough -  Mobile Hydration  Unit (HD  33-35), Grants  to                                                            
Municipalities  BRU, Department of Commerce, Community  and Economic                                                            
Development  on page  14, lines  28 -  30 to read  "Kenai  Peninsula                                                            
Borough/Bear Creek Fire  Service Area - Mobil Hydration Unit (HD 33-                                                            
35)". The $71,500 general fund appropriation remains unchanged.                                                                 
                                                                                                                                
Co-Chair  Wilken  moved  for  adoption  on behalf  of  Senator  Gary                                                            
Stevens.                                                                                                                        
                                                                                                                                
There was no objection and Amendment #14 was ADOPTED.                                                                           
                                                                                                                                
5:33:36 PM                                                                                                                    
                                                                                                                                
Amendment #15: This amendment  deletes the Kenai Peninsula Borough -                                                            
Refurbish Kachemak Fire  Truck (HD 33-35) component of the Grants to                                                            
Municipalities  BRU, Department of Commerce, Community  and Economic                                                            
Development  and $100,000  general  fund appropriation  on page  15,                                                            
lines 9 - 11.                                                                                                                   
                                                                                                                                
Co-Chair  Wilken moved for  adoption of the  amendment on behalf  of                                                            
Senator G. Stevens.                                                                                                             
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
5:34:02 PM                                                                                                                    
                                                                                                                                
Amendment  #16:  This  amendment  changes  the title  of  the  Kenai                                                            
Peninsula Borough - Road  Access to Utilities to Senior Housing Site                                                            
(HD  33-35)   component  of  the   Grants  to  Municipalities   BRU,                                                            
Department of  Commerce, Community and Economic Development  on page                                                            
15, lines 12  - 16 to read "Kenai  Peninsula Borough/Cooper  Landing                                                            
Senior Citizens  Corp., Inc.  - Road Access  to Utilities to  Senior                                                            
Housing  Site (HD 33-35)".  The $71,000  general fund appropriation                                                             
remains unchanged.                                                                                                              
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
5:34:17 PM                                                                                                                    
                                                                                                                                
Amendment  #17:  This  amendment  changes  the title  of  the  Kenai                                                            
Peninsula   Borough   -  Water   Tender   (HD  33-35),   Grants   to                                                            
Municipalities  BRU, Department of Commerce, Community  and Economic                                                            
Development  on page 15,  lines 19 and 20  to read "Kenai  Peninsula                                                            
Borough/Kachemak Emergency  Service Area - Water Tender (HD 33-35)".                                                            
The $75,000 general fund appropriation remains unchanged.                                                                       
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
There being no objective Amendment #17 was ADOPTED.                                                                             
                                                                                                                                
5:34:29 PM                                                                                                                    
                                                                                                                                
Amendment #18: This amendment  changes the title of the Municipality                                                            
of Anchorage - Anchorage  School District/Gladys Elementary Supplies                                                            
(HD  17-32)   component  of  the   Grants  to  Municipalities   BRU,                                                            
Department of  Commerce, Community and Economic Development  on page                                                            
18, lines  19-22 to  read …"Gladys  Wood Elementary  Supplies".  The                                                            
$10,000 general fund appropriation remains unchanged.                                                                           
                                                                                                                                
This amendment also changes  the Municipality of Anchorage - Kincaid                                                            
Park Summer  and Winter  Recreational Improvements,  Fields,  Paving                                                            
and Equipment  (HD 17-32) component of the Grants  to Municipalities                                                            
BRU, Department  of Commerce, Community and Economic  Development on                                                            
page 23,  lines 18 - 23  to be a new component  titled Kincaid  Park                                                            
Project  Group  -  Kincaid  Park  Summer  and  Winter  Recreational                                                             
Improvements, Fields, Paving  and Equipment (HD 17-32). The $480,000                                                            
general fund appropriation remains allocated to the project.                                                                    
                                                                                                                                
This amendment  also changes the Municipality  of Anchorage  - South                                                            
Anchorage  Sports Complex  Ball Fields (HD  17-32) component  of the                                                            
Grants to Municipalities  BRU, Department of Commerce, Community and                                                            
Economic  Development  on  page  24,  lines 19  -  22  to be  a  new                                                            
component  titled  American  Legion  Baseball  Association  -  South                                                            
Anchorage  Sports  Complex  Ball Fields  (HD  17-32).  The  $450,000                                                            
general fund appropriation remains allocated to the project.                                                                    
                                                                                                                                
Co-Chair  Green  moved  for adoption  and  explained  the  technical                                                            
corrections.                                                                                                                    
                                                                                                                                
There being no objection Amendment #18 was ADOPTED.                                                                             
                                                                                                                                
5:35:12 PM                                                                                                                    
                                                                                                                                
Amendment #19: This amendment  inserts a new bill section to read as                                                            
follows.                                                                                                                        
                                                                                                                                
     Sec.  XX. DEPARTMENT OF  FISH AND GAME.  The sum of $50,000  is                                                            
     appropriated  from the general  fund to the Department  of Fish                                                            
     and  Game,  Boars of  Fisheries  and Game,  for  Board of  Game                                                            
     activities  related to review of Tier II subsistence  proposals                                                            
     for the fiscal year ending June 30, 2005.                                                                                  
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green objected for an explanation.                                                                                     
                                                                                                                                
Co-Chair  Wilken read  the language  of the  amendment and  informed                                                            
that Board of Game member,  Ron Summerville, brought this request to                                                            
his attention.                                                                                                                  
                                                                                                                                
Senator  Dyson objected  for further discussion.  Committee  Members                                                            
were told  that appropriations  in this budget  would be limited  to                                                            
construction  projects  and that funding  for studies  would not  be                                                            
considered. While he considered  this proposed study to be valid and                                                            
appropriate,  he asked the  criterion in  determining which  studies                                                            
would receive funding.                                                                                                          
                                                                                                                                
Senator  Hoffman  requested  an explanation   of what  the  proposed                                                            
review is expected to accomplish.                                                                                               
                                                                                                                                
5:36:47 PM                                                                                                                    
                                                                                                                                
MATT ROBUS, Director, Division  of Wildlife Conservation, Department                                                            
of  Fish  and  Game,  testified  this  item  is  actually  a  FY  05                                                            
supplemental  budget request.  The  Board of  Game, with  assistance                                                            
from the Department,  is developing a system to improve  the Tier II                                                            
permit process for subsistence  hunting. The Board determined that a                                                            
series of public hearings  held in various areas of the State should                                                            
be held  to inform  people of the  proposed changes  and to  receive                                                            
input before final  action is taken at the March 2006  Board of Game                                                            
Meeting.  This amendment would  fund the  expenses of holding  these                                                            
hearings.                                                                                                                       
                                                                                                                                
Senator Stedman  asked if this item should be included  as a capital                                                            
project.                                                                                                                        
                                                                                                                                
5:38:27 PM                                                                                                                    
                                                                                                                                
GINGER  BLASDELL,  Staff  to  Co-Chair  Green,  testified  that  the                                                            
amendment would be included  in the portion of this legislation that                                                            
provides FY 06 supplemental  appropriations. Similar amendment would                                                            
be offered.                                                                                                                     
                                                                                                                                
Co-Chair Green  stated the method of including supplemental  capital                                                            
appropriations  in the  following fiscal  year capital  budget  is a                                                            
historical practice.                                                                                                            
                                                                                                                                
5:39:27 PM                                                                                                                    
                                                                                                                                
Senator Hoffman  asked whether  the hearings  could be completed  by                                                            
June 30, 2005, the end of the fiscal year.                                                                                      
                                                                                                                                
5:39:37 PM                                                                                                                    
                                                                                                                                
Mr. Robus informed  that the hearings had already  been held and the                                                            
expenses  incurred. Final action  was not taken  at the March  Board                                                            
Meeting,  as all  considerations were  not resolved.  An  additional                                                            
Board of  Game meeting is  scheduled for June  2005 to continue  the                                                            
process.                                                                                                                        
                                                                                                                                
Co-Chair  Green noted  that  this funding  request  would have  been                                                            
submitted as a FY 05 operating  budget supplemental item if the need                                                            
had been identified earlier.                                                                                                    
                                                                                                                                
Senator Olson  asked if hearings would  be held at locations  within                                                            
the election district he represents.                                                                                            
                                                                                                                                
Mr. Robus  replied that the  proposed changes  would be specific  to                                                            
the moose  and caribou subsistence  hunts in  the Nelchina  Basin of                                                            
Southcentral  Alaska. Therefore,  the hearings  have been  primarily                                                            
held in that  region. Most of the  State-issued subsistence  hunting                                                            
permits   are  granted  for   these  hunts   and  the  majority   of                                                            
controversies  are centered  in this  area. If  successful, the  new                                                            
system could serve  as a pilot project for Tier II  hunting in other                                                            
areas.                                                                                                                          
                                                                                                                                
Senator Stedman objected to the adoption of this amendment.                                                                     
                                                                                                                                
Senator Olson  asked if additional  travel would be planned  for the                                                            
following year.                                                                                                                 
                                                                                                                                
Mr. Robus was unsure. The intent is that regulations would be                                                                   
adopted at the June meeting.                                                                                                    
                                                                                                                                
Senator Stedman removed his objection.                                                                                          
                                                                                                                                
Senator Dyson removed his objection.                                                                                            
                                                                                                                                
Without further objection, Amendment #19 was ADOPTED.                                                                           
                                                                                                                                
5:42:15 PM                                                                                                                    
                                                                                                                                
Amendment  #20:  This  amendment  inserts  a  new  National  Coastal                                                            
Wetland  Conservation   Grant  - Snyder   Parcel  component  to  the                                                            
Department  of Fish and Game  on page 35  and appropriates  $310,000                                                            
Other  Funds to  the component.  Accompanying  explanatory  language                                                            
reads as follows.                                                                                                               
                                                                                                                                
     The Snyder  parcel is 135 acres of undeveloped  wetland habitat                                                            
     on the Gustavus forelands.  The parcel is used by waterfowl and                                                            
     shorebirds and provides  important habitat for sandhill cranes.                                                            
     It  adjoins  the  Dude  Creek  Critical   Habitat  Area  (CHA),                                                            
     designated  for the protection  of sandhill crane habitat,  and                                                            
     is  of  interest  to the  Department  of  Fish  and Game  as  a                                                            
     potential  addition  to the CHA.  Funding  for the acquisition                                                             
     will  come from  a third National  Coastal  Wetland grant,  and                                                            
     private donations.  Title to the property will  ultimately rest                                                            
     with the  state. The federal  grant will have a $104,000  match                                                            
     (25%) provided by The Nature Conservancy (TNC).                                                                            
                                                                                                                                
     Acquisition of this  parcel is the third and final phase of the                                                            
     most  biologically  sensitive and  least developable  lands  in                                                            
     Gustavus;  it will purchase approximately 135  acres. This is a                                                            
     private parcel;  the owner, John Snyder, contacted  TNC with an                                                            
     offer  to  sell.  The  lands  will  be  managed  to  complement                                                            
     adjacent  habitats  including  the Dude  Creek  CHA. A  further                                                            
     management  objective is to allow  continues public  use of the                                                            
     lands for hunting,  fishing, and recreation to the extent those                                                            
     uses are  consistent with the  goal of protecting wetlands  and                                                            
     wildlife habitat.                                                                                                          
                                                                                                                                
Senator Hoffman moved for adoption. He outlined the explanatory                                                                 
statement, pointing out that general funds would not be used.                                                                   
                                                                                                                                
There being no objection Amendment #20 was ADOPTED.                                                                             
                                                                                                                                
5:43:23 PM                                                                                                                    
                                                                                                                                
Amendment  #21: This  amendment  adds a  new Bethel  Youth  Facility                                                            
Security  Improvements  component to  the Department  of Health  and                                                            
Social Services  on page 26 and appropriates $233,900  general funds                                                            
to the component.                                                                                                               
                                                                                                                                
Senator Hoffman  moved for adoption  of Amendment #21 and  explained                                                            
the need for these improvements.                                                                                                
                                                                                                                                
Co-Chair Green remarked  that the proposed security improvements are                                                            
a worthy project.                                                                                                               
                                                                                                                                
There being no objection Amendment #21 was ADOPTED.                                                                             
                                                                                                                                
5:44:20 PM                                                                                                                    
                                                                                                                                
Amendment  #22:  This amendment  increases  the  allocation  to  the                                                            
Bethel Readiness  Center New Construction  - Phase 2 (HD  38) to the                                                            
Department  of  Military   and  Veterans  Affairs  on  page  38  and                                                            
appropriates  $8,062,500  federal  funds  and $2.5  million  general                                                            
funds to the component.  Accompanying explanatory  language reads as                                                            
follows.                                                                                                                        
                                                                                                                                
     The  Governor  had funded  the  $2.5  million match  with  ASLC                                                            
     [Alaska  Student Loan  Corporation] funds  that were denied  in                                                            
     this version  of the capital budget. $1 million  in other funds                                                            
     were  kept but is not  enough to match  the $8,062,500  federal                                                            
     funds.  This  amendment  adds  the additional  $1  million  the                                                            
     Governor requested.                                                                                                        
                                                                                                                                
Senator  Hoffman moved  for adoption  and stressed  that the  Bethel                                                            
Readiness Center is a very important project to the region.                                                                     
                                                                                                                                
Co-Chair Green  clarified that $8 million in federal  funds would be                                                            
received for this project.                                                                                                      
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
5:45:31 PM                                                                                                                    
                                                                                                                                
Amendment  #23: This  amendment  adds a  new Forest  Legacy  Federal                                                            
Grant Program  component to the Department of Natural  Resources and                                                            
appropriates  $630,000   federal  funds.  Accompanying  explanatory                                                             
language reads as follows.                                                                                                      
                                                                                                                                
     These  federal receipts  have  been approved  under the  Forest                                                            
     Legacy  Federal Grant Program  for a conservation easement  for                                                            
     Aleknagik  Natives Limited for over 20,000 acres  of their land                                                            
     within  Wood-Tikchik State Park,  which includes both  banks of                                                            
     the  Agulowak   River,  a  major  salmon  spawning   area,  and                                                            
     approximately  32 miles of shoreline along Lakes  Aleknagik and                                                            
     Nerka.  The Native  allotments  are in prime  locations in  the                                                            
     southern half of the  park. Wood-Tikchik State Park is near the                                                            
     town of Dillingham in Southwest Alaska.                                                                                    
                                                                                                                                
     The Governor's original  budget request included $2,930,963 for                                                            
     three  projects, which  was not included  in the work  draft CS                                                            
     (FIN)  for SB  46. The federal  government  has just  completed                                                            
     their review  of the project request and has  approved $630,000                                                            
     in funding  to begin  phase one for one  of the projects,  with                                                            
     the initial phase  to begin in FY 06, resulting in this amended                                                            
     request.  The other projects  were not approved in this  budget                                                            
     year.                                                                                                                      
                                                                                                                                
Senator Hoffman  moved for adoption  and overviewed the explanatory                                                             
statement.                                                                                                                      
                                                                                                                                
There being no objection Amendment #23 was ADOPTED                                                                              
                                                                                                                                
5:46:33 PM                                                                                                                    
                                                                                                                                
AMENDMENT #24:  This amendment adds  a new Coastal Wetlands  Grant -                                                            
Nushagak  Bay Watershed,  phase  2 component  to  the Department  of                                                            
Natural Resources  and appropriates  $1 million federal receipts  to                                                            
the component.                                                                                                                  
                                                                                                                                
Senator Hoffman moved for  adoption and noted this item was included                                                            
in the Governor's FY 06 budget request.                                                                                         
                                                                                                                                
There being no objection Amendment #24 was ADOPTED.                                                                             
                                                                                                                                
5:47:16 PM                                                                                                                    
                                                                                                                                
Amendment  #25: This amendment  adds a new  Petersburg North  Harbor                                                            
Deferred  Maintenance   and  Transfer   (HD  5)  component   to  the                                                            
Department  of Transportation  and  Public Facilities,  with  intent                                                            
language,  and  appropriates  $2.5  million  general  funds  to  the                                                            
component. The intent language reads as follows.                                                                                
                                                                                                                                
     It  is  the  intent  of  the  Legislature   that  the  City  of                                                            
     Petersburg  enters  into an agreement  with  the Department  of                                                            
     Transportation   and   Public   Facilities   to   accept   full                                                            
     responsibility  for  ownership  and  maintenance  of the  North                                                            
     Harbor at the time of transfer.                                                                                            
                                                                                                                                
Senator Stedman moved for  adoption, noting this item relates to the                                                            
process of transferring  ownership of boat harbors from the State to                                                            
local municipalities.  Funding for  this transfer had been  included                                                            
in the Governor's  proposed FY 06 budget utilizing  a different fund                                                            
source.                                                                                                                         
                                                                                                                                
AT EASE 5:48:20 PM / 5:49:08 PM                                                                                             
                                                                                                                                
Co-Chair  Green  remarked  that  the intent  language  is  clear  in                                                            
stipulating that  the City of Petersburg would assume  ownership and                                                            
responsibility for maintenance and repairs.                                                                                     
                                                                                                                                
There being no objection Amendment #25 was ADOPTED.                                                                             
                                                                                                                                
5:49:34 PM                                                                                                                    
                                                                                                                                
Amendment   #26:  This   amendment  corrects   the  House   District                                                            
designation  of  the Craig  Roads  component  in  the Congressional                                                             
Earmarks BRU, Department  of Transportation and Public Facilities on                                                            
page  65,  line  19 to  reflect  the  project's  location  in  House                                                            
District 5. The $1 million allocation remains unchanged.                                                                        
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green explained the technical change.                                                                                  
                                                                                                                                
There being no objection Amendment #26 was ADOPTED.                                                                             
                                                                                                                                
5:50:00 PM                                                                                                                    
                                                                                                                                
Amendment  #27:  This amendment  inserts  a  new  Bethel  Courthouse                                                            
Improvements component  to the Alaska Court System  and appropriates                                                            
$825,000 general  funds to the component.  Accompanying explanatory                                                             
language reads as follows.                                                                                                      
                                                                                                                                
     This  capital request  is  one piece  of two-part  fix for  the                                                            
     Bethel court facility.  The second piece is a $92,000 operating                                                            
     budget  increment  to  cover increased  costs  associated  with                                                            
     additional  space. This has been funded in both  the Senate and                                                            
     House operating budgets.                                                                                                   
                                                                                                                                
     The court  system currently rents 10,000 s.f.  from the City of                                                            
     Bethel.  The operating  component will  provide increased  rent                                                            
     for  an additional 2,600  s.f. to be  constructed by the  City.                                                            
     This  capital component  will allow  the court  system to  make                                                            
     tenant improvements to the existing space.                                                                                 
                                                                                                                                
     Bethel  is a high-volume superior  court location. Even  though                                                            
     the population  of the area is less than 20%  of the population                                                            
     of  Fairbanks,  it had about  80%  as many  felony cases.  Even                                                            
     though  it is much smaller  than either  Palmer or Kenai,  last                                                            
     year  it had almost  as many  civil jury  trials as Palmer  and                                                            
     Kenai put together.                                                                                                        
                                                                                                                                
     This court  has two superior court judges and  two magistrates,                                                            
     and  a judge from Fairbanks  is frequently  there to help  with                                                            
     the  caseload.  In addition,  the  House and  Senate  operating                                                            
     budgets have approved  an upgrade of one magistrate position to                                                            
     a district judgeship.  However, the Bethel Courthouse currently                                                            
     has only  one superior courtroom, one district  courtroom (with                                                            
     room  for only a six  member jury), and  a small hearing  room.                                                            
     Moreover,  the remainder  of the space  is inadequate.  Changes                                                            
     proposed include adding  two superior courtrooms, expanding and                                                            
     soundproofing  the  cramped jury  deliberation  room, fixing  a                                                            
     number  of  security issues  (for  example,  in-custody  felony                                                            
     defendants   must  currently  be  transported  through   public                                                            
     areas),   creating  magistrate  and  law  clerk   offices,  and                                                            
     expanding the clerk's office.                                                                                              
                                                                                                                                
     The  FY 06 request  is for  bid document  preparation,  project                                                            
     management and construction.                                                                                               
                                                                                                                                
Senator Hoffman  moved for adoption  and overviewed the explanatory                                                             
statement.                                                                                                                      
                                                                                                                                
Co-Chair Green shared that  she has received several telephone calls                                                            
regarding this project.                                                                                                         
                                                                                                                                
There being no objection Amendment #27 was ADOPTED.                                                                             
                                                                                                                                
5:50:55 PM                                                                                                                    
                                                                                                                                
Amendment   #28:   This   amendment   reduces   the   general   fund                                                            
appropriation  to the Kenai  Peninsula College  Student Housing  (HD                                                            
33-35) component  of the  University of Alaska  on page 89,  lines 4                                                            
and 5 from $7.5 million to $6 million.                                                                                          
                                                                                                                                
This amendment  also reduces the general  fund appropriation  to the                                                            
Kodiak  College Vocational  Technology  Addition  Phase  I -  Kodiak                                                            
Island  Borough (HD 36)  of the  University of  Alaska, on page  89,                                                            
lines 6 - 9 from $10 million to $8.5 million.                                                                                   
                                                                                                                                
This  amendment also  inserts  a new  Kachemak Bay  Campus  Addition                                                            
component to the  University of Alaska and appropriates  $3 million.                                                            
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green  explained the amendment  noting it would  have a net                                                            
zero fiscal impact to the FY 06 budget.                                                                                         
                                                                                                                                
Senator  Stedman  clarified  the  affected  campuses  of  the  Kenai                                                            
Peninsula College, the Kodiak College, and Kachemak Bay.                                                                        
                                                                                                                                
There being no objection Amendment #28 was ADOPTED.                                                                             
                                                                                                                                
5:51:52 PM                                                                                                                    
                                                                                                                                
Amendment   #29:  This   amendment  deletes   the  Fairbanks   Area,                                                            
University Avenue/Geist  Road/Johansen intersection  project and the                                                            
$3.5  million  Alaska  capital  income  fund  appropriation  to  the                                                            
project  from Section  6. DEPARTMENT  OF TRANSPORTATION  AND  PUBLIC                                                            
FACILITIES., on page 91, lines 7 and 8.                                                                                         
                                                                                                                                
This  amendment   also  inserts  a  new  Fairbanks,  Wilbur   Street                                                            
Extension project  in to Section 6 and appropriates  $1.1 million to                                                            
the project.                                                                                                                    
                                                                                                                                
This  amendment also  inserts  a new  Fairbanks,  2nd Avenue,  Moore                                                            
Street Realignment  and New Airport  Way Intersection project  in to                                                            
Section 6 and appropriates $2,550,000 to the project.                                                                           
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     These  two projects  are on the FMATS  [Fairbanks Metropolitan                                                             
     Area  Transportation   Study]  priority   list  and  will  work                                                            
     together  with the currently  funded upgrade of 2nd  Avenue and                                                            
     Wilbur  Street  to  fund  all planned  access/egress   projects                                                            
     related  to  the  Carlson  Center/Growden  Park/Fish   Hatchery                                                            
     complex area.                                                                                                              
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Co-Chair  Wilken   detailed  the   road  changes  and  improvements                                                             
proposed.                                                                                                                       
                                                                                                                                
AT EASE 5:52:35 PM / 5:53:08 PM                                                                                             
                                                                                                                                
Co-Chair  Wilken  offered   a motion   to  amend  the  amendment  to                                                            
appropriate  $1 million to the Wilbur  Street Extension project  and                                                            
$2.5 million to the 2nd Avenue project.                                                                                         
                                                                                                                                
Without objection Amendment #29 was AMENDED and ADOPTED.                                                                        
                                                                                                                                
5:53:43 PM                                                                                                                    
                                                                                                                                
Amendment #30:  This amendment deletes  the language of Section  10.                                                            
NATIONAL PETROLEUM  RESERVE - ALASKA  IMPACT GRANT PROGRAM;  INTENT.                                                            
(b), on page 92,  lines 16 - 20 and inserts new language  to read as                                                            
follows.                                                                                                                        
                                                                                                                                
          (b) The sum of $24,706,539, received by the National                                                                  
     Petroleum Reserve  - Alaska special revenue fund (AS 37.05.530)                                                            
     under  42 U.S.C. 6508  by August 31,  2005, is appropriated  to                                                            
     the Department of  Commerce, Community and Economic Development                                                            
     from  capital  project  grants  under  the  National  Petroleum                                                            
     Reserve  -  Alaska  impact  grant   program  to  the  following                                                            
     municipalities for  the purposes stated in the amounts set out:                                                            
          MUNICIPALITY               PROJECT                   AMOUNT                                                           
          (1)  North Slope Borough   Social and cultural      $275,880                                                          
                                       study - phase 2                                                                          
          (2) North Slope Borough Wainwright youth             229,500                                                          
                                       program                                                                                  
          (3) Nuiqsut                Local government          468,000                                                          
                        operations/cultural                                                                                     
                                       coordinator                                                                              
          (4) North Slope Borough Wainwright softball           35,000                                                          
                                       field                                                                                    
          (5) Barrow                 City impound and          174,389                                                          
                                       disposal site project                                                                    
          (6) North Slope Borough Atqasuk energy               100,042                                                          
                                       assessment                                                                               
          (7) North Slope Borough Wainwright local             311,500                                                          
                                       government operations                                                                    
          (8) Barrow                 City Hall building         69,413                                                          
                                       addition feasibility                                                                     
                                       study                                                                                    
          (9) Nuiqsut                Youth center operations 150,000                                                            
                                       and maintenance                                                                          
          (10) Atqasuk               Atqasuk local             336,468                                                          
                                       government operations                                                                    
          (11) Barrow                Roller rink renovation     63,556                                                          
                         feasibility study                                                                                      
          (12) North Slope Borough Utility master plan/        106,221                                                          
                                       emergency plan                                                                           
          (13)  North Slope Borough  Misdemeanor probation     346,071                                                          
                                       officer                                                                                  
          (14) North Slope Borough Fire equipment and          250,000                                                          
                                       training                                                                                 
          (15) Barrow                Barrow local            1,385,843                                                          
                                       government operations                                                                    
          (16) Nuiqsut               Design/install            200,000                                                          
                                       retractable boat ramp                                                                    
          (17)  North Slope Borough  Continuing studies to  2,461,368                                                           
                                       investigate                                                                              
                                       wildlife/subsistence                                                                     
          (18)  North Slope Borough  Oil spill response team   737,867                                                          
          (19)  North Slope Borough  Police officers for    1,486,689                                                           
                                       NPR-A villages                                                                           
          (20)  North Slope Borough  Health, survival, and     654,426                                                          
                                       sustainability of key                                                                    
                                       subsistence resources                                                                    
          (21)  North Slope Borough  Workforce development  3,729,451                                                           
                                       program                                                                                  
          (22)  North Slope Borough  Mayor's job program    2,527,961                                                           
          (23)  North Slope Borough  Police importation     1,101,512                                                           
                                       combat program                                                                           
          (24) North Slope Borough North Slope science         425,578                                                          
                                       initiative                                                                               
          (25) North Slope Borough Village capacity            968,182                                                          
                                       building                                                                                 
          (26) North Slope Borough NPR-A technical          1,468,508                                                           
                                       review team                                                                              
          (27) North Slope Borough Allied health            3,400,000                                                           
                                       training center                                                                          
          (28)  North Slope Borough  Wainwright city office     38,114                                                          
                                       renovation                                                                               
          (29) Atqasuk               Youth center addition     680,000                                                          
                        to community center                                                                                     
          (30) North Slope Borough Wainwright lagoon           525,000                                                          
                                       boat launch                                                                              
                                                                                                                                
          (c) If the amount available for appropriation from the                                                                
     National  Petroleum Reserve -  Alaska special reserve  fund (AS                                                            
     37.05.530) under (b)  of this section is less than $24,706,539,                                                            
     then each  of the appropriations made by (b)(1)  - (30) of this                                                            
     section  is  reduced   in  proportion  to  the  amount  of  the                                                            
     shortfall.                                                                                                                 
                                                                                                                                
This amendment  also stipulates  a lapse date  of June 30,  2006 for                                                            
the appropriations  made in Section  10(b)(1)-(13); a lapse  date of                                                            
June 30, 2007 for the appropriations  made in subsections (14)-(16);                                                            
a  lapse date  of  June 30,  2008  for the  appropriations  made  in                                                            
subsections  (17)-(26); and  a lapse date of  June 30, 2009  for the                                                            
appropriation  made in subsection  (27). The appropriations  made in                                                            
subsections (28)-(30) lapse under AS 37.25.020.                                                                                 
                                                                                                                                
Co-Chair  Wilken  moved  for  adoption  and  outlined  the  projects                                                            
intended to receive federal  National Petroleum Reserve-Alaska (NPR-                                                            
A)  grant  funds.  The listing  of  projects  would  prioritize  the                                                            
projects.                                                                                                                       
                                                                                                                                
Senator  Olson  clarified  that  the  lapse  date for  most  of  the                                                            
appropriations is the end of FY 06.                                                                                             
                                                                                                                                
Co-Chair  Wilken  replied that  the  standard five-year  lapse  date                                                            
would apply  to most of  the capital projects.  Appropriations  made                                                            
for most of the operating  expenses would lapse at the conclusion of                                                            
the fiscal year. Other items have specified lapse dates.                                                                        
                                                                                                                                
Senator Olson questioned  whether adequate time would be allowed for                                                            
implementation.                                                                                                                 
                                                                                                                                
5:57:40 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilken  noted that the appropriations would  not expire for                                                            
14 months.                                                                                                                      
                                                                                                                                
Senator Olson surmised  the lapse date of June 30, 2006 would be too                                                            
early to expend funds for capital projects.                                                                                     
                                                                                                                                
5:58:11 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  explained that  the  designated monies  should  be                                                            
expended in  the fiscal year. Monies  that would be carried  forward                                                            
would  automatically  do so  until the  specified  lapse date.  This                                                            
would provide  oversight for projects  that currently have  none. If                                                            
at the conclusion  of FY 06, the lapse  date were insufficient,  the                                                            
affected community  would be required  to explain the situation  and                                                            
request an extension.                                                                                                           
                                                                                                                                
5:59:39 PM                                                                                                                    
                                                                                                                                
Senator Dyson  appreciated Co-Chair  Wilken's attempt. He  asked the                                                            
percentage  of  the  total  appropriation  allocated  for  operating                                                            
expenses.                                                                                                                       
                                                                                                                                
Co-Chair  Wilken  answered   that  42  percent  of  the  funding  is                                                            
designated  to  capital  projects   and  58 percent   for  operating                                                            
expenditures.                                                                                                                   
                                                                                                                                
Co-Chair Wilken then pointed  out that of the $24 million total NPR-                                                            
A  grant, $22  million  would be  appropriated  to the  North  Slope                                                            
Borough. He also noted the 21 percent administrative charge.                                                                    
                                                                                                                                
Co-Chair  Green understood  the  provisions  of this  amendment  are                                                            
intended to provide a review of the NPR-A grant program.                                                                        
                                                                                                                                
Co-Chair Wilken  affirmed. Appropriations made in  this manner would                                                            
allow for  oversight  of the expenditures.  The  intent is that  the                                                            
grant  funds are  expended  on  those communities  impacted  by  oil                                                            
development.                                                                                                                    
                                                                                                                                
Senator  Stedman  asked  if  the inclusion  of  funds  intended  for                                                            
operating  expenses  are included  in  this  capital budget  due  to                                                            
delays.                                                                                                                         
                                                                                                                                
Co-Chair  Wilken concurred.  Previous appropriation  of NPR-A  grant                                                            
funds has been included  as a single line item with no specification                                                            
of  actual projects  and  programs.  The  language proposed  in  the                                                            
amendment allocates  the funding for  the four communities  impacted                                                            
by activities  in the NPR-A. Subsection  (a) of Section 10  provides                                                            
intent language  that future NPR-A impact mitigation  program grants                                                            
be designated for this purpose.                                                                                                 
                                                                                                                                
6:03:20 PM                                                                                                                    
                                                                                                                                
Without objection Amendment #30 was ADOPTED.                                                                                    
                                                                                                                                
6:04:00 PM                                                                                                                    
                                                                                                                                
Amendment  #31:  This amendment  changes  the name  of  the City  of                                                            
Wasilla sewer  plant expansion project in subsection  (e) of Section                                                            
43.  HOUSE  DISTRICTS  13-16.,  on  page 113,  line  6  to  "septage                                                            
facility".                                                                                                                      
                                                                                                                                
Co-Chair  Green  moved  for adoption  and  explained  the  technical                                                            
change.                                                                                                                         
                                                                                                                                
There being no objection, Amendment #31 was ADOPTED.                                                                            
                                                                                                                                
6:04:23 PM                                                                                                                    
                                                                                                                                
Amendment  #32: This amendment  deletes subsections  (b) and  (d) of                                                            
Section  53.   DEPARTMENT  OF  COMMERCE,   COMMUNITY  AND   ECONOMIC                                                            
DEVELOPMENT.,  on page 120, lines 1 - 4 and 9 - 12.  The language of                                                            
the two subsections is identical and reads as follows.                                                                          
                                                                                                                                
     The sum  of $900,000 is appropriated  from the general  fund to                                                            
     the Department of  Commerce, Community and Economic Development                                                            
     for  payment  as a  grant  under  AS 37.05.316  to  the  Alaska                                                            
     Housing  Finance  Corporation  for  construction  of  the  cold                                                            
     climate housing research center.                                                                                           
                                                                                                                                
This amendment  also  inserts a  new Cold Climate  Housing  Research                                                            
Center  - Cold Climate  Building  & Infrastructure  Research &  Test                                                            
Facility component to the  Grants to Named Recipients (AS 37.05.316)                                                            
BRU, Department of Commerce, Community and Economic Development, on                                                             
page 3 and appropriates $900,000 general funds to the component.                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     In  the 5/3/05  work  draft version  "Y" there  were  duplicate                                                            
     requests   (sections  (b)   and  (d))   of  $900,000   for  the                                                            
     construction of the Cold Climate Research Center.                                                                          
                                                                                                                                
     This amendment  deletes one of the $900,000 appropriations  and                                                            
     moves  the  funding  to  the Grants  to  Named  Recipients  (AS                                                            
     37.05.316)  portion  of  the work  draft  that begins  on  page                                                            
     three.                                                                                                                     
                                                                                                                                
     This  is consistent  with previous appropriations  made  to the                                                            
     project.                                                                                                                   
                                                                                                                                
Co-Chair Wilken moved for adoption and explained the changes.                                                                   
                                                                                                                                
There being no objection, Amendment #32 was ADOPTED.                                                                            
                                                                                                                                
6:05:11 PM                                                                                                                    
                                                                                                                                
Amendment #33:  this amendment inserts  a new Sport Fish  Hatcheries                                                            
component to the Department  of Fish and Game on page 35 line 11 and                                                            
appropriates $62,140,000  to the component. Accompanying explanatory                                                            
language reads as follows.                                                                                                      
                                                                                                                                
     The state Department  of Revenue would issue revenue bonds with                                                            
     a  gross amount  of  $69,000,000  but the  actual construction                                                             
     costs  of the statewide  hatcheries would  be $62,140,000.  The                                                            
     gross bond  amount would have adjustments made  for underwriter                                                            
     spread,  true interest  costs,  debt service  reserve fund  and                                                            
     earnings.                                                                                                                  
                                                                                                                                
     The  $62.14 million in  hatchery bond  funds would be  spent as                                                            
     follows:                                                                                                                   
                                                                                                                                
     Interior  Alaska - Fish  presently stocked  in interior  Alaska                                                            
     are produced in Anchorage  and transported via the road system.                                                            
     Currently,  about  20% of  the fish  produced  in the  existing                                                            
     hatchery  program go  to Fairbanks and  the surrounding  areas.                                                            
     The  imminent  loss of  heat  at the  existing  Anchorage  area                                                            
     hatcheries   will  drastically  affect  the  interior-stocking                                                             
     program.  Without warm water (which doubles the  growth rate of                                                            
     fish), the  hatcheries will not be able to produce  fish in the                                                            
     sizes currently stocked  in interior waters. A recent study has                                                            
     indicated  that building  a new  hatchery in  Fairbanks is  the                                                            
     best way  to remediate the problem. The proposed  hatchery will                                                            
     at least  double the  existing fish  production goals  for this                                                            
     area,  meeting projected demand  over the next 25 years.  It is                                                            
     estimated  that the hatchery will cost $25 million,  15 million                                                            
     of  which will  be funded  under the  CIP. The  balance of  the                                                            
     monies  will  come  from  federal   funds  already  secured  or                                                            
     anticipated.                                                                                                               
                                                                                                                                
     Southcentral   Alaska  - The  imminent  loss  of  heat  at  the                                                            
     existing Anchorage  area hatcheries will drastically affect the                                                            
     southcentral  Alaska  stocking  program.  Loss of  heat at  the                                                            
     existing  hatcheries will not only decrease the  number of fish                                                            
     planted throughout  southcentral Alaska, but  will decrease the                                                            
     number  of  sites that  will  be stocked.  A recent  study  has                                                            
     indicated  that building  a new  hatchery in  Anchorage is  the                                                            
     best way  to remediate the problem. We propose  to address this                                                            
     issue  by constructing a new  hatchery facility at the  site of                                                            
     the existing  Fort Richardson  hatchery in Anchorage.  Hatchery                                                            
     operations  at the  existing  Elmendorf Hatchery  in  Anchorage                                                            
     will  be shut  down. The new  hatchery  facility will  increase                                                            
     production  by 50%,  sufficient to meet  projected demand  over                                                            
     the next  25 years. We anticipate this hatchery  will cost just                                                            
     over $45  million, the cost of  which will be entirely  covered                                                            
     under the proposed bond.                                                                                                   
                                                                                                                                
     Southeast Alaska -  The Division of Sport Fish does not operate                                                            
     any  hatchery  facilities  in southeast  Alaska,  but  supports                                                            
     targeted    private   sector   hatchery   operations    through                                                            
     cooperative  agreements   aimed  at increasing   sport  fishing                                                            
     opportunities. Bond  funds totaling $2.14 million will fund the                                                            
     following  projects:  $1.5 million  to the City  of Skagway  to                                                            
     build  a hatchery which  they would  operate; $0.5 million  for                                                            
     deferred  maintenance   for  the  Crystal  Lake  Hatchery  near                                                            
     Petersburg;  and $140,000 for one time capital  improvements by                                                            
     the  Northern   Southeast  Regional   Aquaculture  Association                                                             
     (NSRAA) for Haines king salmon release.                                                                                    
                                                                                                                                
Co-Chair Wilken moved for adoption and objected to the motion to                                                                
allow the Department of Fish and Game to explain the amendment.                                                                 
                                                                                                                                
6:05:42 PM                                                                                                                    
                                                                                                                                
KELLY KEPLER, Director, Division of Sport Fish, Department of Fish                                                              
and Game, explained this amendment would authorize the issuance of                                                              
bonds to support construction of hatchery facilities.                                                                           
                                                                                                                                
Senator Hoffman asked the affect were the amendment not adopted.                                                                
                                                                                                                                
Mr. Kepler replied that the monies would not be expended.                                                                       
                                                                                                                                
There being no objection, Amendment #33 was ADOPTED.                                                                            
                                                                                                                                
6:07:10 PM                                                                                                                    
                                                                                                                                
Amendment #34:  This amendment changes  the YMCA of Fairbanks  - Van                                                            
(HD  7-11)  component   of  the  Grants  to  Named  Recipients   (AS                                                            
37.05.316)  BRU,  Department  of Commerce,  Community  and  Economic                                                            
Development on  page 8, lines 9 and 10 to read "ASYMCA  of Fairbanks                                                            
- Van purchase  and operation (HD  7-11)". The $50,000 general  fund                                                            
appropriation remains unchanged.                                                                                                
                                                                                                                                
Co-Chair  Wilken   moved  for  adoption  and  explained   that  this                                                            
amendment  proposes a  technical change  to reflect  program as  the                                                            
armed services YMCA.                                                                                                            
                                                                                                                                
There being no objection, Amendment #34 was ADOPTED.                                                                            
                                                                                                                                
6:07:49 PM                                                                                                                    
                                                                                                                                
Amendment #35: This amendment  inserts a new subsection into Section                                                            
52. DEPARTMENT  OF ADMINISTRATION.,  on page 119, following  line 26                                                            
to read as follows.                                                                                                             
                                                                                                                                
          (c) The sum of $4,350,000 is appropriated from the                                                                    
     general    fund   to   the   Department   of   Administration,                                                             
     commissioner's  office, for distribution  to state agencies  to                                                            
     offset  the increased chargeback  rates for statewide  services                                                            
     as identified  in the statewide  federal cost allocation  plan.                                                            
                                                                                                                                
Co-Chair Green moved for adoption.                                                                                              
                                                                                                                                
Ms. Blaisdell  explained this appropriation, plus  the appropriation                                                            
proposed in Amendment  #36, would provide funding  to offset some of                                                            
the expenses  incurred through delivery  of centralized services  to                                                            
other State  agencies that  would otherwise  be reimbursed  by those                                                            
agencies.                                                                                                                       
                                                                                                                                
Co-Chair Green  remarked that inadequate funding has  been allocated                                                            
for these reimbursements.  This amendment would allow departments to                                                            
continue to receive centralized administrative services.                                                                        
                                                                                                                                
There being no objection, Amendment #35 was ADOPTED.                                                                            
                                                                                                                                
AT EASE 6:10:44 PM / 6:16:27 PM                                                                                             
                                                                                                                                
Co-Chair   Green  reiterated   the  intent   of  Amendment   #35  in                                                            
appropriating funding to  all agencies for reimbursement of the cost                                                            
of centralized services.                                                                                                        
                                                                                                                                
Ms.  Blaisdell   stated  that  normally   general  funds   would  be                                                            
appropriated  directly  to  the agencies,  and  the  agencies  would                                                            
reimburse  the Department  of Administration  for  the costs of  the                                                            
centralized  services. Conversely,  this amendment  would allow  the                                                            
Department  of Administration to provide  the general funds  to each                                                            
agency  based on a  cost-allocation  plan. A  similar provision  was                                                            
adopted several  years prior. She would verify the  legality of this                                                            
action.                                                                                                                         
                                                                                                                                
Co-Chair Green  noted that this amendment is generally  not allowed,                                                            
although an exception would be made in this instance.                                                                           
                                                                                                                                
6:17:43 PM                                                                                                                    
                                                                                                                                
Amendment  #36: This  amendment  inserts  two new  subsections  into                                                            
Section 20. FUND  TRANSFERS., on page 96, following  line 18 to read                                                            
as follows.                                                                                                                     
                                                                                                                                
          (d) The sum of $12,000,000 is appropriated from the                                                                   
     general   fund  to   the  Alaska  public   building  fund   (AS                                                            
     37.05.570).                                                                                                                
          (e) The amount necessary to have an unobligated balance                                                               
     of  $5,000,000  in  the  state insurance   catastrophe  reserve                                                            
     account  in accordance with AS  37.05.289 is appropriated  from                                                            
     the  general fund to  the state insurance  catastrophe  reserve                                                            
     account (AS 37.05.289).                                                                                                    
                                                                                                                                
This  amendment  also deletes  "$300,000"  from  subsection  (b)  of                                                            
Section 52. DEPARTMENT  OF ADMINISTRATION., on page 119, line 25 and                                                            
inserts "$40,300,000". The amended language reads as follows.                                                                   
                                                                                                                                
          (b) The sum of $40,300,000 is appropriated from the                                                                   
     general   fund   to   the   information   services   fund   (AS                                                            
     44.21.045(a)).                                                                                                             
                                                                                                                                
Co-Chair Green moved for adoption.                                                                                              
                                                                                                                                
Ms. Blaisdell  explained the $12 million appropriated  to the Alaska                                                            
public building  fund would be distributed  to those state  agencies                                                            
that participate  in the public building  fund. The monies  would be                                                            
utilized for maintenance expenses.                                                                                              
                                                                                                                                
Ms.  Blaisdell next  reminded  that  the State  of Alaska  is  self-                                                            
insured. The appropriation  made in Sec 20(e) would  be utilized for                                                            
management costs.                                                                                                               
                                                                                                                                
Ms. Blaisdell  spoke to the  fund transfer  of $40.3 million  to the                                                            
information  services   fund.  The  information  services   fund  is                                                            
utilized  to   pay  expenses  including   payroll  associated   with                                                            
information services  activities, communications and  the enterprise                                                            
technology fund.                                                                                                                
                                                                                                                                
6:19:46 PM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  clarified that the  effective date of the  provisions                                                            
in the amendment should be July 1, 2005.                                                                                        
                                                                                                                                
Senator  Stedman asked  if the  original dollar  amount of  $300,000                                                            
appropriated in Section 52(b) page 19 was a typographical error.                                                                
                                                                                                                                
Ms. Blaisdell affirmed.                                                                                                         
                                                                                                                                
Co-Chair Green  reminded the Committee  of the discussions  relating                                                            
to this matter  beginning six to eight weeks prior,  in which it was                                                            
determined  that no  more than 30  percent of  the amount  requested                                                            
would be  appropriated for  the information  services fund.  Many of                                                            
the  participating  agencies  have  received  less  than  sufficient                                                            
funding for this purpose for several years.                                                                                     
                                                                                                                                
There being no objection, Amendment #36 was ADOPTED.                                                                            
                                                                                                                                
AT EASE 6:21:36 PM / 8:25:39 PM                                                                                             
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                

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