Legislature(1999 - 2000)

03/16/2000 09:20 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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HOUSE FINANCE COMMITTEE                                                                                                         
March 16, 2000                                                                                                                  
9:20 A.M.                                                                                                                       
                                                                                                                                
TAPE HFC 00 - 69, Side 1.                                                                                                       
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Mulder  called the House Finance Committee meeting                                                                     
to order at 9:20 A.M.                                                                                                           
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Co-Chair Mulder    Representative Foster                                                                                        
Co-Chair Therriault   Representative Grussendorf                                                                                
Representative Austerman  Representative G. Davis                                                                               
Representative Bunde   Representative Phillips                                                                                  
Representative J. Davies  Representative Williams                                                                               
                                                                                                                                
Representative Moses was not present for the meeting.                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                    
                                                                                                                                
Annalee McConnell, Director, Office of Management and                                                                           
Budget, Office of the Governor; Kenneth Bischoff, Director,                                                                     
Division of Administrative Services, Department of Public                                                                       
Safety.                                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
SB 250 An Act making and amending capital, supplemental,                                                                        
and other appropriations and reappropriations;                                                                                  
making a reappropriation under art. IX, sec. 17c,                                                                               
Constitution of the State of Alaska, from the                                                                                   
constitutional budget reserve fund; making                                                                                      
appropriations to capitalize funds; ratifying                                                                                   
certain expenditures; and providing for an                                                                                      
effective date.                                                                                                                 
                                                                                                                                
 HCS CS SB 250 (FIN) was reported out of Committee                                                                              
with individual recommendations.                                                                                                
SENATE BILL NO. 250                                                                                                             
                                                                                                                                
An Act making and amending capital, supplemental,                                                                               
and other appropriations and reappropriations;                                                                                  
making a reappropriation under art. IX, sec. 17c,                                                                               
Constitution of the State of Alaska, from the                                                                                   
constitutional budget reserve fund; making                                                                                      
appropriations to capitalize funds; ratifying                                                                                   
certain expenditures; and providing for an                                                                                      
effective date.                                                                                                                 
                                                                                                                                
Vice Chair Bunde MOVED to adopt the work draft SB 260, #1-                                                                      
GS2041\N, Utermohle, 3/15/00, as the version of the bill                                                                        
before the Committee.  There being NO OBJECTION, it was                                                                         
adopted.                                                                                                                        
                                                                                                                                
Co-Chair Mulder commented that the most notable changes from                                                                    
the Senate version to the proposed draft was full funding                                                                       
for Power Cost Equalization (PCE), pupil transportation, and                                                                    
incorporation of some of the provisions which the Senate had                                                                    
included.                                                                                                                       
                                                                                                                                
Co-Chair Mulder provided a brief overview of the spreadsheet                                                                    
and the proposed bill.  [Copy on File].                                                                                         
                                                                                                                                
Representative J. Davies pointed out that there had been                                                                        
receipt authority contained in the original version of the                                                                      
bill for the University which was not included in the                                                                           
proposed draft.  Co-Chair Mulder replied that the goal was                                                                      
to try to create a bill that would not need to go to                                                                            
Conference Committee. The intent was to include only time                                                                       
sensitive issues.  The Senate did not agree that the                                                                            
University addition was a time sensitive issue.                                                                                 
Representative J. Davies asked if it would be included in                                                                       
the regular supplemental.  Co-Chair Mulder responded that he                                                                    
did support that notion.                                                                                                        
                                                                                                                                
Vice Chair Bunde asked for further information on Item #12,                                                                     
the Department of Public Safety, the grant to the Alaska                                                                        
Mountain Safety Center for providing avalanche-warning                                                                          
services in the amount of $125.4 thousand dollars.                                                                              
                                                                                                                                
KEN BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATION SERVICES,                                                                    
DEPARTMENT OF PUBLIC SAFETY, advised that this project has                                                                      
gone through many changes based on an original project                                                                          
recommendation submitted by the Alaska State Troopers.  The                                                                     
original full year program did not go forward.  The                                                                             
Department was asked to identify the amount of funding to                                                                       
contract services for the balance of this fiscal year.                                                                          
Based on that information, the Department identified $670                                                                       
thousand dollars, of which approximately $124 thousand                                                                          
dollars was on a prorated basis, and eliminating the one                                                                        
time costs for equipment. It was a policy decision to                                                                           
request only appropriate expenditures for this fiscal year.                                                                     
Mr. Bischoff advised that eventually, there will be a                                                                           
permanent avalanche program.                                                                                                    
                                                                                                                                
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET,                                                                    
OFFICE OF THE GOVERNOR, added that when the Administration                                                                      
was first discussing the project with the Department,                                                                           
deciding what the State should have in place was considered.                                                                    
She pointed out that the Department was asked to pare down                                                                      
this year's request.  She alluded to a program which could                                                                      
be permanently in place to address these concerns.  The                                                                         
Administration is exploring use of Federal Emergency                                                                            
Management Assistance (FEMA) monies to help with mitigation.                                                                    
                                                                                                                                
Vice Chair Bunde asked what the money would be used for.                                                                        
Mr. Bischoff replied that the money would be used for road                                                                      
condition alerts and to create a mechanism to access high                                                                       
use areas.  The funds would not be used for snow removal.                                                                       
                                                                                                                                
Co-Chair Mulder asked the cost of putting Public Service                                                                        
Announcements (PSA) out on the radio to alert people of                                                                         
potential avalanches.  Mr. Bischoff replied that the PSA                                                                        
portion could be accomplished for about $15,000 dollars.                                                                        
Ms. McConnell interjected that there needs to be an                                                                             
assessment performed to identify specific risk areas and                                                                        
target them.                                                                                                                    
                                                                                                                                
Representative G. Davis asked if the Alaska Mountain Safety                                                                     
Center was a non-profit group.  Mr. Bischoff replied that it                                                                    
is a non profit organization with a specialty in handling                                                                       
these situations.  They do have existing contracts to do                                                                        
this work.  Ms. McConnell added that this group is currently                                                                    
doing the avalanche warning systems for industry and various                                                                    
municipalities.  Their role is to provide trainings and                                                                         
classes.                                                                                                                        
                                                                                                                                
Ms. McConnell acknowledged the concern of how to "get people                                                                    
to think" with regard to avalanche warnings.  She emphasized                                                                    
that the Department can not take extra responsibility in                                                                        
that area with their current resources.                                                                                         
                                                                                                                                
Co-Chair Mulder asked how long the Department has been                                                                          
dealing with this concern.  Ms. McConnell replied that the                                                                      
Governor had been discussing it since late fall.  A task                                                                        
group was organized to work with various organizations.                                                                         
During the past couple months, the Department has been                                                                          
working on it, however, it was not included in the budget as                                                                    
it came to the Administration to late.                                                                                          
                                                                                                                                
Representative G. Davis inquired where that language was                                                                        
located in the bill.  Co-Chair Mulder replied that it was                                                                       
placed in the summary sheet listed as Section #12.                                                                              
                                                                                                                                
Representative Grussendorf asked how Section 7(b)-Department                                                                    
of Law related to Section (8)-Legislative Council.  Co-Chair                                                                    
Mulder recommended that Representative Grussendorf offer an                                                                     
amendment to delete Section 7(b) and Section 8.                                                                                 
                                                                                                                                
Representative Grussendorf MOVED to DELETE Section 8 from                                                                       
the bill.  Vice Chair Bunde OBJECTED for the purpose of                                                                         
discussion.                                                                                                                     
                                                                                                                                
Co-Chair Mulder explained that the issue was for funding                                                                        
statehood defense.  There are a variety of concerns in that                                                                     
category.  Legislative Council desired that they have                                                                           
necessary funding in order to pursue legal support from the                                                                     
Department of Law.                                                                                                              
                                                                                                                                
Representative Austerman suggested that the language should                                                                     
be written more specifically to warrant his support.  He                                                                        
asked where that funding would be spent.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: J. Davies, G. Davis, Foster, Grussendorf,                                                                             
Phillips, Williams, Austerman, Therriault,                                                                                      
Mulder                                                                                                                          
OPPOSED:  Bunde                                                                                                                 
                                                                                                                                
Representative Moses was not present for the vote.                                                                              
                                                                                                                                
The MOTION PASSED (9-1).                                                                                                        
                                                                                                                                
Representative Grussendorf MOVED to REDUCE Section 7(b) by                                                                      
$100 thousand dollars.  Representative Williams OBJECTED for                                                                    
the purpose of discussion.  Representative Grussendorf                                                                          
explained that action would balance Section 7(b) and Section                                                                    
8.                                                                                                                              
                                                                                                                                
Representative Phillips recommended deleting the entire                                                                         
Section 7(b).  Representative J. Davies asked why it had                                                                        
been included in the "fast track" supplemental.  Co-Chair                                                                       
Mulder replied that there are a number of issues involving                                                                      
the State's rights litigation that are currently underway.                                                                      
In discussions with the Administration, the intent was to                                                                       
guarantee that the Department would have adequate resources                                                                     
to address whatever comes up.                                                                                                   
                                                                                                                                
Representative Phillips pointed out that when the                                                                               
Subcommittee went through the Department of Law's budget,                                                                       
there was not a request for additional funds for the State                                                                      
rights cases.                                                                                                                   
                                                                                                                                
Representative Phillips MOVED to AMEND the amendment by                                                                         
deleting the entire amount of $500 thousand dollars.                                                                            
Representative Grussendorf OBJECTED.  He commented that he                                                                      
was trying to appease the Senate side for the statehood                                                                         
defense.  Co-Chair Mulder noted that Senator Parnell had                                                                        
indicated that he felt a "little burned" on the issue and                                                                       
that he would support that delete.                                                                                              
                                                                                                                                
Representative Grussendorf WITHDREW his OBJECTION to                                                                            
deleting "$500 thousand dollars" from Section 7(b).  There                                                                      
being NO further OBJECTION, that amount in Subsection 7(b)                                                                      
was deleted from the bill.  There being NO OBJECTION to the                                                                     
amended amendment, it was adopted.                                                                                              
                                                                                                                                
Representative Phillips referenced Page 6, Line 8, pointing                                                                     
out that she did not remember that section being included in                                                                    
the House bill.  Co-Chair Mulder explained that section was                                                                     
a reappropriation.                                                                                                              
                                                                                                                                
Vice Chair Bunde voiced his concern with the mountain safety                                                                    
line.  He recommended that it be changed to reflect the $100                                                                    
thousand dollar deletion.  Co-Chair Mulder noted that he had                                                                    
an amendment which would appropriate $15 thousand dollars to                                                                    
that component for PSA's.                                                                                                       
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT #1. [Copy on File].                                                                              
Representative J. Davies OBJECTED for the purpose of                                                                            
discussion.                                                                                                                     
                                                                                                                                
Representative J. Davies asked if the amount of money                                                                           
proposed in the amendment would be adequate.  Mr. Bischoff                                                                      
replied that the presumption was open and that the funds                                                                        
will be contracted.                                                                                                             
                                                                                                                                
Representative J. Davies inquired which areas of the State                                                                      
would be affected and if the Alaska Mountain Safety Center                                                                      
was prepared to accommodate that information.  Co-Chair                                                                         
Mulder questioned with the reduced amount, should the                                                                           
language include the Alaska Mountain Safety Center or should                                                                    
that reference be deleted.  Mr. Bischoff recommended that                                                                       
portion be left open to the Department's discretion.                                                                            
                                                                                                                                
Representative Phillips noted that the amendment was drafted                                                                    
to version "K" of the bill and that the Committee was                                                                           
speaking to drafted version "N".  Co-Chair Mulder responded                                                                     
that there would be a new Section #12, which would follow                                                                       
Line 24.  Co-Chair Mulder offered an amendment to the                                                                           
amendment, Line 4, delete "#17" and insert "following Line                                                                      
24"; Lines 7-8, deleting the language "for payment as a                                                                         
grant under AS 37.05.316 to the Alaska Mountain Safety                                                                          
Center".  Representative J. Davies OBJECTED.                                                                                    
                                                                                                                                
Representative J. Davies asked if the information which the                                                                     
Department would be using, would be available without                                                                           
inclusion of that language.  Mr. Bischoff advised that all                                                                      
resources that the State Troopers currently use would be                                                                        
tapped to provide essential information.  Representative J.                                                                     
Davies understood that the original proposal would require                                                                      
additional work to mark the harzard places in the high-risk                                                                     
areas.  He commented that there should be an additional sum                                                                     
to cover the costs of data for the PSA's.  Co-Chair Mulder                                                                      
suggested that another amendment would address that concern.                                                                    
                                                                                                                                
Representative J. Davies WITHDREW his OBJECTION.  Vice Chair                                                                    
Bunde commented that this would be a "feel good" gesture,                                                                       
which he doubted would be effective.  He asserted that                                                                          
people would continue to put themselves into danger                                                                             
regardless of the PSA's.  There being NO further OBJECTION,                                                                     
the amendment to the amendment was adopted.                                                                                     
                                                                                                                                
Representative J. Davies questioned if there needed to be an                                                                    
additional amount above the PSA amount passed on for the                                                                        
Mountain Safety Center to consolidate that information.  Ms.                                                                    
McConnell replied that Commissioner Otte had indicated that                                                                     
there needs to be additional postings. She stated that the                                                                      
Department could use any additional support.                                                                                    
                                                                                                                                
Representative J. Davies MOVED to change the amount from                                                                        
$15,000 dollars to $30,000 dollars with the intent that the                                                                     
additional $15,000 dollars would be used to contract with                                                                       
the Alaska Mountain Safety Center to provide additional                                                                         
information.  There being NO OBJECTION, it was adopted.                                                                         
                                                                                                                                
Representative Phillips MOVED to report HCS CS 205 (FIN) out                                                                    
of Committee with individual recommendations.                                                                                   
Representative J. Davies OBJECTED for the purpose of a                                                                          
comment.  He voiced his appreciation that the supplemental                                                                      
was moved expedientially.  Representative J. Davies WITHDREW                                                                    
his OBJECTION, and the bill moved from Committee.                                                                               
                                                                                                                                
HCS CS SB 250 (FIN) was reported out of Committee with                                                                          
"individual recommendations".                                                                                                   
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 10:00 A.M.                                                                                             
H.F.C. 6 3/16/00 a.m.                                                                                                           

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