Legislature(1999 - 2000)

04/27/2000 09:40 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 27, 2000                                                                                           
                         9:40 A.M.                                                                                              
                                                                                                                                
TAPE HFC 00 - 137, Side 1                                                                                                       
TAPE HFC 00 - 137, Side 2                                                                                                       
TAPE HFC 00 - 138, Side 1                                                                                                       
TAPE HFC 00 - 138, Side 2                                                                                                       
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair  Therriault  called   the  House  Finance  Committee                                                                   
meeting to order at 9:40 a.m.                                                                                                   
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Co-Chair Mulder                                                                                                                 
Co-Chair Therriault            Representative Foster                                                                            
Vice Chair Bunde               Representative Grussendorf                                                                       
Representative Austerman       Representative G. Davis                                                                          
Representative J. Davies       Representative Phillips                                                                          
Representative Williams                                                                                                         
                                                                                                                                
Representative Moses was not present for the meeting.                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                    
                                                                                                                                
Representative Eric Croft; Kurt  Parkan, Deputy Commissioner,                                                                   
Department of  Transportation and Public  Facilities; Annalee                                                                   
McConnell, Director, Office of  Management and Budget, Office                                                                   
of  the   Governor;  Dan   Spencer,  Director,  Division   of                                                                   
Administrative Services, Department  of Administration; Karla                                                                   
Schofield, Deputy  Director, Accounting, Legislative  Affairs                                                                   
Agency; Denny DeWitt, Staff, Representative Mulder.                                                                             
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
CS SB 192(FIN) am                                                                                                               
          An  Act  making  and  amending  appropriations  and                                                                   
          reappropriations; making  appropriations under art.                                                                   
          IX, sec. 17©, Constitution  of the State of Alaska,                                                                   
          from  the constitutional  budget reserve  fund; and                                                                   
          providing for an effective date.                                                                                      
                                                                                                                                
          HCS CS SB 192 (FIN) was reported out of Committee                                                                     
          with a "do pass" recommendation.                                                                                      
CS FOR SENATE BILL NO. 192(FIN) am                                                                                            
                                                                                                                                
     "An   Act  making   and   amending  appropriations   and                                                                   
     reappropriations;  making appropriations under  art. IX,                                                                   
     sec. 17©, Constitution of  the State of Alaska, from the                                                                   
     constitutional  budget reserve  fund; and providing  for                                                                   
     an effective date."                                                                                                        
                                                                                                                                
Co-Chair  Therriault provided  members  with  work draft,  1-                                                                   
GS2043\N,  Utermohle, 4/26/00  (copy on  file). He  explained                                                                   
that  the  proposed  committee   substitute  was  amended  to                                                                   
correct duplications and incorrect  reappropriation language.                                                                   
Section 19,  page 68 was deleted.  This was a  duplication of                                                                   
updated language  under the Governor's Office  in section 45,                                                                   
page  78  and  the  Legislature   in  section  47,  page  78.                                                                   
Reappropriation  language   in  section  58  (page   85)  was                                                                   
corrected to state:                                                                                                             
                                                                                                                                
     Sec. 58. ELECTION DISTRICT 24. (a) Section 38(a), ch 2,                                                                    
     FSSLA 1999 is amended to read:                                                                                             
     (a)  The  sum of the unexpended and  unobligated balance                                                                   
     of the appropriation made in  sec. 62(a)(3), ch 139, SLA                                                                   
     1998  (Boys  &  Girls  Club   for  Muldoon  Clubhouse  -                                                                   
     $39,531)   is  reappropriated   to  the  Department   of                                                                   
     Community  and Economic  Development [REGIONAL  AFFAIRS]                                                               
     for  payment   as  a  grant   under  AS  37.05.315   [AS                                                                 
     37.05.316]  to the Municipality  of Anchorage  for South                                                               
     Fork   Fire   Department  [FOR]   equipment   and   land                                                                   
     acquisition                                                                                                                
                                                                                                                                
      (b) The  unexpended  and unobligated  balance  of  that                                                                   
     portion  of the appropriation  made  by sec. 62(a),  ch.                                                                   
     139,  SLA 1998,  that  was awarded  as  a  grant to  the                                                                   
     Anchorage   Neighborhood  Health   Center  (50,000)   is                                                                   
     reappropriated                                                                                                             
                                                                                                                                
          (1)One-half to the Department of Community and                                                                        
             Economic  Development   as  a  grant   under  AS                                                                   
             37.05.315 to the Municipality  of Anchorage as a                                                                   
             grant  under  AS  37.05.316  for  the  Northeast                                                                   
             Community  Council  to  develop   an  area  park                                                                   
             master plan: and                                                                                                   
          (2)One-half to the Department of Health and Social                                                                    
             Services  for  payment  as  a   grant  under  AS                                                                   
             37.05.316 to the Anchorage Boys  and Girls Club,                                                                   
             Eagle River  facility  for tenant  improvements,                                                                   
             program  development,   and   the  purchase   of                                                                   
             equipment and supplies.                                                                                            
                                                                                                                                
Co-Chair Therriault explained  that there was also duplicated                                                                   
language  for the  Department  of Environmental  Conservation                                                                   
Unalaska's reappropriation  between section 49  (page 80) and                                                                   
section 66  (page 91). The  duplicative language  was deleted                                                                   
from  section 66  in the  proposed  committee substitute.  He                                                                   
pointed  out that  section 54,  Kiawock reappropiation  under                                                                   
the Department of Environmental  Conservation (page 83) would                                                                   
also be deleted due to duplication.                                                                                             
                                                                                                                                
  Insert new bill sections to read:                                                                                             
    * Sec. A. MEDICAID SERVICES. (a) Section 43, ch. 84,                                                                        
  SLA 1999, page 42, lines 17 - 18, is amended to read:                                                                         
                                                                                                                                
 Council on Domestic Violence and Sexual           Assault                                                                      
  9,832,800 GF                                                                                                                  
                                                                                                                                
   (b) Section 43, ch. 84, SLA 1999, page 31, line 23, is                                                                       
  amended to read:                                                                                                              
  Purchased Services 391,138,400 GF                                                                                             
                                                                                                                                
   (c) Section 43, ch. 84, SLA 1999, page 33, line 33, is                                                                       
  amended to read:                                                                                                              
  State Health Services 72,530.500 GF                                                                                           
                                                                                                                                
    (d) Section 3, ch. 85, SLA 1999, page 5, line 27, is                                                                        
  amended to read:                                                                                                              
  State Health Services 4,979,700                                                                                               
                                                                                                                                
  (e) Section 43, ch. 84, SLA 1999, page 31, lines 3 - 5,                                                                       
  is amended to read:                                                                                                           
     by the amount reappropriated by this subsection.                                                                           
                                                                                                                                
     (h) The sum of $540,000 is reappropriated from the                                                                         
     unexpended  and  unobligated  balance of  general  funds                                                                   
     appropriated  by sec.  43, ch.  84, SLA  1999, page  33,                                                                   
     line  33, as   amended  by  (c) of  this section  (State                                                                   
     Health  Services  - $72,530,500)  to  the Department  of                                                                   
     Health  and Social  Services for  Medicaid services  for                                                                   
     the  fiscal year  ending June  30, 2001.  The amount  of                                                                   
     general  funds  appropriated by  sec.  43,  ch. 84,  SLA                                                                   
     1999,  page 33,  line  33,  as amended  by  (c) of  this                                                                   
     section,  is reduced  by  the amount  reappropriated  by                                                                   
     this subsection.                                                                                                           
                                                                                                                                
     (i)  The  sum of  $460,000  is reappropriated  from  the                                                                   
     unexpended   and   unobligated    balance   of   general                                                                   
     funds/mental health appropriated  by sec. 3, ch. 85, SLA                                                                   
     1999,  page 5,  line   27,  as amended  by  (d) of  this                                                                   
     section  (State  Health Services  -  $4,979,700) to  the                                                                   
     Department  of Health and  Social Services  for Medicaid                                                                   
     services for  the fiscal year ending June  30, 2001. The                                                                   
     amount  of general funds/mental  health appropriated  by                                                                   
     sec. 3,  ch. 85, SLA 1999,  page 5, line 27,  as amended                                                                   
     by  (d)  of  this  section, is  reduced  by  the  amount                                                                   
     reappropriated by this  subsection.                                                                                        
                                                                                                                                
     *  Sec.   B.  Section  A   of  this  Act   takes  effect                                                                   
     immediately under AS 01.10.070(c).                                                                                         
                                                                                                                                
Co-Chair  Therriault observed  that the  amendment is  a fund                                                                   
source switch, which  would free up money for  the Department                                                                   
of  Transportation  and  Public  Facilities  match.  Co-Chair                                                                   
Mulder explained  that the appropriation utilizes   Temporary                                                                   
Assistance to Needy Families funds from the FY01 budget.                                                                        
                                                                                                                                
There being NO OBJECTION, Amendment 1 was adopted.                                                                              
                                                                                                                                
Representative  Austerman  MOVED to  ADOPT  Amendment 2.  Co-                                                                   
Chair Therriault OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
     Larsen Bay Water Storage Tank Replacement     150.0 GF                                                                     
                                                                                                                                
                                                                                                                                
Representative  Austerman  explained  that the  condition  is                                                                   
critical. Following  the December  6th, 1999 earthquake  that                                                                   
centered on the Kodiak Island  region, registering 7.0 on the                                                                   
Richter scale (HRV), the community  water tank in the village                                                                   
of Larsen  Bay  deteriorated completely.  Presently they  are                                                                   
piping  in water  through  a  temporary system  that  doesn't                                                                   
allow  for filtering.  This puts  the village  in a state  of                                                                   
noncompliance with the Surface Water Treatment Rule.                                                                            
                                                                                                                                
Co-Chair  Therriault explained  that  he  would maintain  his                                                                   
objection.   He noted  that there  are no  extra funds  since                                                                   
funding was used for pupil transportation.                                                                                      
                                                                                                                                
Co-Chair Mulder asked to HOLD  the amendment until the end of                                                                   
the   meeting.     Representative   Austerman  WITHDREW   the                                                                   
amendment for discussion later in the meeting.                                                                                  
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT Amendment 3.                                                                                     
                                                                                                                                
     Add a new section to read:                                                                                                 
                                                                                                                                
     *Sec -. ANCHORAGE INTERNATIONAL AIRPORT CONSTRUCTION.                                                                      
                                                                                                                                
     (a)  The amount earned by  the investments authorized by                                                                   
     AS  37.15.410  and AS  37.15.420  of  the  International                                                                   
     Airports Construction  Fund for the period  February 28,                                                                   
     1999 to June 30, 2001, after any  payment required under                                                                   
     U.S.C. 148, not to exceed $ 18,140,000,  is appropriated                                                                   
     from  the International  Airports  Construction Fund  to                                                                   
     the  Department of  Transportation  & Public  Facilities                                                                   
     for construction  costs of  the Anchorage  International                                                                   
     Airport Terminal Redevelopment Project.                                                                                    
                                                                                                                                
     (b)  The  appropriation  in  section (a)  is  contingent                                                                   
     upon approval  by the  signatory airlines in  accordance                                                                   
     with  the  Anchorage  International   Airport  operating                                                                   
     agreement.                                                                                                                 
                                                                                                                                
Representative  J.  Davies noted  that  the  amendment was  a                                                                   
duplication of  Amendment 29.  Amendment 29 was  sponsored by                                                                   
Co-Chair  Mulder and  Representative J.  Davies. Amendment  3                                                                   
was WITHDRAWN.                                                                                                                  
                                                                                                                                
Representative J. Davies WITHDREW Amendment 4.                                                                                  
                                                                                                                                
Representative  J. Davies  MOVED  to ADOPT  Amendment 5.  Co-                                                                   
Chair Mulder OBJECTED. Amendment 4 would add a new section:                                                                     
                                                                                                                                
     Sec.  ____  Learning  Opportunity  Grants.  The  sum  of                                                                   
     $6,430,222 is appropriated  from the general fund to the                                                                   
     Department  of  Education   and  Early  Development  for                                                                   
     payment as  grants to each school district  in an amount                                                                   
     equal to  the school  district's adjusted average  daily                                                                   
     membership    multiplied   by   $30.60,    as   Learning                                                                   
     Opportunity  Grants  to pay  the costs  of  supplemental                                                                   
     student  instructional   programs  to   improve  student                                                                   
     performance  on the high  school graduation  examination                                                                   
     or  benchmark examinations  for the  fiscal year  ending                                                                   
     June 30. 2001.                                                                                                             
                                                                                                                                
Representative J.  Davies stressed that the  net effect would                                                                   
be an addition of $630 thousand  dollars. The increment would                                                                   
hold most  urban school districts  harmless for the  shift of                                                                   
adjusted  ADM. It  would also  increase the  amount of  money                                                                   
available  for  rural school  districts.  Some  of the  rural                                                                   
school  districts were  cut by  a third through  the new  ADM                                                                   
adjustments to the grant program.                                                                                               
                                                                                                                                
Co-Chair Mulder  commented that the funding was  not provided                                                                   
for  in the  operating budget.  He stated  that the  spending                                                                   
plan would not work if the amendment were adopted.                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED:  Austerman,   Bunde,    Davis,   Foster,   Phillips,                                                                   
Williams, Therriault, Mulder                                                                                                    
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative  J. Davies  observed that  pioneer homes  were                                                                   
funded  as  recommended  by  the   Governor's  amendment.  He                                                                   
WITHDREW Amendment 6.                                                                                                           
                                                                                                                                
Representative  J. Davies  MOVED  to ADOPT  Amendment 7.  Co-                                                                   
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
Representative   J.  Davies  noted   that  the  Amendment   7                                                                   
appropriates   $450,000  from   the  general   fund  to   the                                                                   
Department  of  Administration for  the  City  of Kenai.  The                                                                   
appropriation   funds    the   Kenai   Coastal    Trail/Bluff                                                                   
Restoration project. The trail is in danger due to erosion                                                                      
                                                                                                                                
Co-Chair Therriault  suggested that the City  of Kenai should                                                                   
have considered  the use  of their  municipal matching  grant                                                                   
for the item.                                                                                                                   
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
7.                                                                                                                              
                                                                                                                                
IN FAVOR: Grussendorf, Davies                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the meeting.                                                                               
                                                                                                                                
The MOTION FAILED (2-7).                                                                                                        
                                                                                                                                
Representative  J. Davies MOVED  to ADOPT  Amendment 8.   Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     Department of Transportation and Public Facilities                                                                         
     Section 1, Page 19, line 26 is amended to read:                                                                            
     Kenai: Nikiski Emergency Escape Route Rehabilitation                                                                       
           (ED 9)                                                                                                               
                                                                                                                                
     Under Appropriation Items                                                                                                  
          Insert:       "450,000"                                                                                               
                                                                                                                                
     Under General Funds                                                                                                        
          Insert:   "450,000"                                                                                                   
                                                                                                                                
Representative J. Davies explained  that a single-lane gravel                                                                   
road  is  the  only alternative  road  from  the  area.  This                                                                   
appropriation would upgrade the  road from a single-lane to a                                                                   
two-lane road.                                                                                                                  
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
8.                                                                                                                              
                                                                                                                                
IN FAVOR: Grussendorf, Davies                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the meeting.                                                                               
                                                                                                                                
The MOTION FAILED (2-7).                                                                                                        
                                                                                                                                
Representative  J. Davies MOVED  to ADOPT  Amendment 9.   Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     Department of Education and Early Development                                                                              
                                                                                                                                
    Page 4, after line 18 insert the following project:                                                                         
                                                                                                                                
     Museum Collection Preservation-Modification                                                                                
     and Renovation of Storage (ED 3-4)            $295,600                                                                     
                                                                                                                                
Representative  J. Davies  spoke in support  of Amendment  9.                                                                   
The project was begun in FY 93.  It was only partially funded                                                                   
in FY  94. Additional  storage space  would be provided.  Co-                                                                   
Chair Therriault noted that the  project was on the list, but                                                                   
that there were not enough funds.                                                                                               
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
9.                                                                                                                              
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative  J. Davies  MOVED to  ADOPT amended  Amendment                                                                   
10. Co-Chair Mulder OBJECTED.                                                                                                   
                                                                                                                                
     Department of Revenue                                                                                                      
     Sec. 1, page 18, line 20                                                                                                   
     Alaska Housing Finance Corporation (AHFC)                                                                                  
     Low Income Weatherization      $5.4 million dollars                                                                        
     ($1.4  million federal  receipts  &  $4.0 million  Corp.                                                                   
     receipts)                                                                                                                  
                                                                                                                                
Representative J.  Davies spoke in support of  the amendment.                                                                   
The program has  been one of the more successful  in terms of                                                                   
providing energy  efficiency. The item can reduce  the demand                                                                   
on Power Cost Equalization.                                                                                                     
                                                                                                                                
Co-Chair  Therriault  spoke in  support  of  the program  and                                                                   
noted that funds  for the program have doubled  over the last                                                                   
year. The  item received $1 million  in state funds  in FY00.                                                                   
It would receive $2 million dollars in FY01.                                                                                    
                                                                                                                                
Co-Chair  Mulder clarified  that the  total appropriation  is                                                                   
$3.4, of which $2 million dollars  are corporate receipts and                                                                   
$1.4 million dollars are in federal funds.                                                                                      
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
10.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  11. Co-                                                                   
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
     Sec. ___  DEPARTMENT OF EDUCATION AND  EARLY DEVELOPMENT                                                                   
     The  sum of $602,900  is appropriated  from the  general                                                                   
     fund   to  the   Department  of   Education  and   Early                                                                   
     Development,  Schools  for   the  Handicapped,  for  the                                                                   
     educational  cost  of children  placed  in  out-of-state                                                                   
     residential  treatment for the  fiscal year  ending June                                                                   
     30,2000.                                                                                                                   
                                                                                                                                
Representative   J.  Davies   discussed   Amendment  11.   He                                                                   
explained that the amendment would  fund educational costs of                                                                   
children   placed  in   out-of-state  residential   treatment                                                                   
schools  for  the handicap.  There  are  56 children  in  the                                                                   
custody of either  the Division of Family and  Youth Services                                                                   
or the Division  of Juvenile Justice that would  benefit from                                                                   
these services.                                                                                                                 
                                                                                                                                
Co-Chair  Mulder  noted  that  the  amendment  would  fund  a                                                                   
supplemental  request.  He explained  that  the  supplemental                                                                   
request has  exceeded the allocation  by $9 million  dollars.                                                                   
He acknowledged that  the costs would need to be  paid in the                                                                   
FY01 budget.                                                                                                                    
                                                                                                                                
Representative  J.  Davies  pointed  out  that  part  of  the                                                                   
purpose of a  supplemental budget is to deal  with unforeseen                                                                   
disasters. He emphasized that  it does not make sense to push                                                                   
caseload driven  expenses out  of the  budget because  of the                                                                   
cost of natural disasters.                                                                                                      
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
11.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  12. Co-                                                                   
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
  Statewide Highways and Aviation Maintenance ($971.4)HWCF                                                                      
 Statewide Highways and Aviation Maintenance $971.4 GF                                                                          
                                                                                                                                
 Central Highways and Aviation           (528.6) HWCF                                                                           
 Central Highways and Aviation           528.6 GF                                                                               
                                                                                                                                
Representative J.  Davies spoke in support of  the amendment.                                                                   
The Highway Working  Capital Fund (HWCF) is made  up of money                                                                   
agencies  have  contributed  to replace  vehicles  that  have                                                                   
reached the ends of their useful  lives. The appropriation of                                                                   
$1.5 million  from  the HWCF would  impact  the cash flow  of                                                                   
this  fund.  All  departments  including  the  Department  of                                                                   
Transportation  and Public  Facilities  will  either have  to                                                                   
delay  replacement  of  vehicles   or  finance  replacements.                                                                   
Financing  costs would  be  spread  as a  cost  to the  fund,                                                                   
resulting in increased charges for all departments.                                                                             
                                                                                                                                
If the  Department  of Transportation  and Public  Facilities                                                                   
does not receive  an appropriation for $1.5  million dollars,                                                                   
the  department   would  be  unable  to   reopen  maintenance                                                                   
stations  and  would  have to  close  additional  maintenance                                                                   
stations and some rural airports.                                                                                               
                                                                                                                                
Co-Chair  Mulder spoke  against  the amendment.  He  observed                                                                   
that  the  Highway  Working Capital  Fund  is  available  for                                                                   
appropriation.  He concluded  that vehicles  would be  leased                                                                   
instead  of  purchased. He  stressed  that  it was  a  choice                                                                   
between opening maintenance stations  and buying new vehicles                                                                   
and acknowledged  that the issue  would have to  be revisited                                                                   
in the next year.                                                                                                               
                                                                                                                                
Representative J.  Davies pointed out  that it costs  more to                                                                   
lease  vehicles  and  that  the fund  was  created  to  allow                                                                   
agencies to save money.                                                                                                         
                                                                                                                                
Representative  G. Davis  cautioned that  it would  be a  bad                                                                   
precedent to rob from the Fund.                                                                                                 
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
12.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Amendment 13 was HELD.                                                                                                          
                                                                                                                                
Amendment 14 was WITHDRAWN as unnecessary.                                                                                      
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment new 15.                                                                       
                                                                                                                                
     (h) The sum  of $100,000 is appropriated  from statutory                                                                   
     designated  program receipts  (AS 37.05. 146(b)(3)).  to                                                                   
     the  Department  of  Administration,  office  of  public                                                                   
     advocacy for operating costs  for the fiscal year ending                                                                   
     June 30. 2000.                                                                                                             
                                                                                                                                
Co-Chair  Mulder  stated  that  he is  a  co-sponsor  of  the                                                                   
amendment.  He explained  that  the funding  source would  be                                                                   
fees  received by  the Office  of Public  Advocacy (OPA)  for                                                                   
management of public guardian  accounts. If this amendment is                                                                   
not approved  OPA might not be  able to pay all vendors  in a                                                                   
timely manner, which may undercut  its ability to continue to                                                                   
secure  contractual services  at a  rate substantially  below                                                                   
the market rate for private attorney                                                                                            
                                                                                                                                
There being NO OBJECTION, Amendment 15 was adopted.                                                                             
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  16. Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     Department of Corrections  Facility Maintenance, Repair,                                                               
     Replacement and Renovation (ED)  400.0 GF                                                                                  
                                                                                                                                
     Department  of Education  and  Early Development  Museum                                                               
     Collection  Preservation -  Modification And  Renovation                                                                   
     of Storage Area (ED 80)  295.6 GF                                                                                          
                                                                                                                                
     Department  of  Health  and   Social  Services  Deferred                                                               
     Maintenance, Renewal, Replacement                                                                                          
     And Equipment (ED 99) 157.3    GF                                                                                          
                                                                                                                                
     Department of Military and Veterans' Affairs Military                                                                  
     Youth Academy Dining Hall Upgrades and Safety                                                                              
     Improvements (ED 23)                                                                                                       
     249.2 GF                                                                                                                   
                                                                                                                                
     Department of Transportation and Public Facilities                                                                     
     Facilities Deferred Maintenance and Critical Repairs                                                                       
     700.0 GF                                                                                                                   
                                                                                                                                
Representative  J. Davies spoke  in support of  Amendment 16.                                                                   
The  amendment   groups  deferred   maintenance  issues.   He                                                                   
stressed  that  there will  be  more  costly repairs  in  the                                                                   
future if the deferred maintenance is not addressed.                                                                            
                                                                                                                                
Co-Chair  Therriault noted  that  the House  funded  deferred                                                                   
maintenance  for  the  Department   of  Corrections  at  $600                                                                   
thousand dollars.                                                                                                               
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
16.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Amendment 17 was HELD.                                                                                                          
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  18. Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     Department of Transportation and Public Facilities                                                                         
     Harbor Deferred Maintenance    400.0 GF                                                                                    
     Airport Deferred Maintenance   400.0 GF                                                                                    
     Highway Deferred Maintenance   700.0 GF                                                                                    
                                                                                                                                
Representative J. Davies noted  that the amendment would fund                                                                   
specific deferred  maintenance needs that are  only partially                                                                   
met.                                                                                                                            
                                                                                                                                
Co-Chair Therriault spoke against the amendment.                                                                                
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
18.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  19. Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     AHFC Chugach View Renovation  $2,000,000                                                                                   
     AHFC Eyak Manor Renovation     $1,600,000                                                                                  
     AHFC Senior & Statewide Deferred                                                                                           
     Maintenance and Renovation     $975,000                                                                                    
                                                                                                                                
Representative  J. Davies spoke  in support of  Amendment 19.                                                                   
He noted that  the amendment would fund three  of the highest                                                                   
priority projects for the Alaska  Housing Finance Corporation                                                                   
(AHFC). They  would be paid for  with AHFC bond  funds issued                                                                   
under their GO authority.                                                                                                       
                                                                                                                                
Co-Chair  Therriault spoke  against the  amendment. He  noted                                                                   
that funding was  restored in the FY00 budget  and added that                                                                   
they  are  attempting  to  include the  projects  in  a  bond                                                                   
package. He  noted that  there is  $1,522,200 dollars  in the                                                                   
budget for statewide-deferred maintenance.                                                                                      
                                                                                                                                
Representative J. Davies WITHDREW Amendment 19.                                                                                 
                                                                                                                                
Representative  Grussendorf MOVED  to ADOPT  Amendment 20  as                                                                   
amended. Co-Chair Mulder OBJECTED.                                                                                              
                                                                                                                                
     Department of Transportation & Public Facilities                                                                           
     Marine Transportation Projects                                                                                             
     Section 1, page 34, insert after line 21                                                                                   
                                                                                                                                
     Add project: Alaska Marine Highway System:                                                                                 
   Sitka Shuttle Vessel      $6,900,000 Federal Receipts                                                                        
                                                                                                                                
Representative   Grussendorf   spoke   in  support   of   the                                                                   
amendment.                                                                                                                      
                                                                                                                              
(TAPE CHANGE, HFC 00 - 137, SIDE 2)                                                                                           
                                                                                                                                
Representative Grussendorf noted  that federal funds could be                                                                   
used for  the appropriation.   Representative Williams  spoke                                                                   
in support of the amendment.                                                                                                    
                                                                                                                                
Co-Chair    Mulder   questioned    if   additional    federal                                                                   
authorization would  result in  other items being  bumped off                                                                   
the  list. Representative  Grussendorf  responded that  there                                                                   
are always projects that are unable to go forward.                                                                              
                                                                                                                                
Representative  Austerman  spoke  in support.  He  maintained                                                                   
that  a fast  ferry would  be a  logical step  for the  ferry                                                                   
system in Southeast Alaska.                                                                                                     
                                                                                                                                
Vice Chair Bunde spoke in opposition.                                                                                           
                                                                                                                                
Representative  J.  Davies  stressed  that the  vessel  is  a                                                                   
critical part of the Southeast Transportation Plan.                                                                             
                                                                                                                                
Representative G. Davis spoke  in support. He observed that a                                                                   
fast ferry could provide savings.  He questioned if the ferry                                                                   
had been designed.                                                                                                              
                                                                                                                                
Vice  Chair Bunde  pointed  out that  savings  would only  be                                                                   
achieved  if  an older  slower  boat,  with more  crew,  were                                                                   
eliminated.                                                                                                                     
                                                                                                                                
KURT    PARKAN,    DEPUTY   COMMISSIONER,    DEPARTMENT    OF                                                                   
TRANSPORTATION AND PUBLIC FACILITIES  provided information on                                                                   
the  amendment. He  noted that  the  department received  $31                                                                   
million  dollars  in  federal  authorization  for  FY00.  The                                                                   
department  requested   $69.0  million  dollars   in  federal                                                                   
authorization for  FY01 and is prepared  to go out for  a RFP                                                                   
within a couple of months. The  estimated cost is $38 million                                                                   
dollars.  The  project  is in  the  Statewide  Transportation                                                                   
Improvement Program (STIP) plan.                                                                                                
                                                                                                                                
Mr.  Parkan  explained  that authorization  would  allow  the                                                                   
project to continue. The department  would be able to capture                                                                   
federal funding without loss of other projects.                                                                                 
                                                                                                                                
Co-Chair Therriault observed that  the federal match has been                                                                   
reduced.                                                                                                                        
                                                                                                                                
Co-Chair Mulder  asked if another  vessel would go  off line.                                                                   
Mr.  Parkan could  not identify  which vessel  would go  off-                                                                   
line. The Plan depends on the shuttle vessels.                                                                                  
                                                                                                                                
Co-Chair Mulder expressed concern  that the number of vessels                                                                   
would not be reduced.                                                                                                           
                                                                                                                                
Mr. Parkan emphasized that the  department cannot prove their                                                                   
ability unless  the first vessel is built.  Representative J.                                                                   
Davies  pointed  out that  older  vessels cannot  be  removed                                                                   
unless there are new vessels to  replace them. Representative                                                                   
Austerman  agreed and  emphasized  the need  to complete  the                                                                   
first step.                                                                                                                     
                                                                                                                                
Representative  Grussendorf stressed  that the  tides in  the                                                                   
Sergius Narrows  create difficulties  with passage.  The fast                                                                   
ferry  could  alleviate  problems  with  passage  during  low                                                                   
tides.                                                                                                                          
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
20.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Davis, Grussendorf, Williams, Austerman                                                                       
OPPOSED: Bunde, Foster, Phillips, Mulder, Therriault                                                                            
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (5-5).                                                                                                        
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment 21. Co-                                                                       
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
     *Sec.  . EXXON VALDEZ  OIL SPILL  RESTORATION FUND.  (a)                                                                   
     The legislature finds that                                                                                                 
                                                                                                                                
     (1)  as a  result of the judgment entered  by the United                                                                   
     States  District  Court  in  the  criminal  case  United                                                                   
     States of  America v. Exxon  Shipping Company  and Exxon                                                                   
     Corporation,   No.  A90-015   CR.  the  state   received                                                                   
     $50,000,000 in  restitution "to be used by  the State of                                                                   
     Alaska... exclusively  for restoration  projects. within                                                                   
     the State of Alaska, relating  to the 'Exxon Valdez' oil                                                                   
     spill":                                                                                                                    
                                                                                                                                
     (2)  the money  received by the state in  restitution is                                                                   
     held in the  "Exxon Valdez oil spill  restoration fund,"                                                                   
     established by  the Department of Revenue,  to implement                                                                   
     the judgment; and                                                                                                          
                                                                                                                                
     (3)  the  appropriation in (b)  of this section  is made                                                                   
     in order to achieve the purposes  set out in the court's                                                                   
     restitution order described in (1) of this subsection.                                                                     
                                                                                                                                
     (b)  The  unappropriated   and  unobligated  balance  of                                                                   
     income accrued  on or before June 30, 2001.  in the fund                                                                   
     described in  (a)(2) of this section is  appropriated to                                                                   
     the  Department of  Fish  and Game  for  the purpose  of                                                                   
     restoring.   replacing,   or  enhancing   resources   or                                                                   
     services  injured  or lost  as  a  result of  the  Exxon                                                                   
     Valdez  oil spill  through  a multiple-year  project  to                                                                   
     provide  for coordination among  the Department  of Fish                                                                   
     and Game, the Department  of Environmental Conservation,                                                                   
     the Exxon  Valdez Oil Spill  Trustee Council,  the North                                                                   
     Pacific  Research   Board,  and  similar   entities,  of                                                                   
     fisheries  and  contaminants   research  and  monitoring                                                                   
     projects financed  or carried  out by those  entities in                                                                   
     this state and the North Pacific waters.                                                                                   
                                                                                                                                
     *    Sec. -. LAPSE PROVISION.  The appropriation made by                                                                   
     sec.  (b) of  this  Act is  for  a capital  project  and                                                                   
     lapses under AS 3 7.25.020.                                                                                                
                                                                                                                                
Representative J.  Davies explained that the  amendment would                                                                   
appropriate some  of the interest and unobligated  balance of                                                                   
the $50 million  dollars in the EVOSS Fund  to the Department                                                                   
of Fish and Game to continue the  efforts of restoration. The                                                                   
Department  of  Fish  and  Game  would  coordinate  with  the                                                                   
Department  of  Environmental  Conservation and  the  Trustee                                                                   
Council to carry out long-term projects.                                                                                        
                                                                                                                                
Co-Chair  Mulder  expressed  concern  that  the  language  is                                                                   
nebulous.  He stated  that he  would not be  as reluctant  to                                                                   
support  specific projects  and emphasized  that EVOSS  funds                                                                   
are limited.                                                                                                                    
                                                                                                                                
Representative  J. Davies argued  in support. He  suggested a                                                                   
conceptual  amendment  to  bring  specific  projects  to  the                                                                   
Legislative  Budget  and  Audit  Committee.  Co-Chair  Mulder                                                                   
agreed   that  the  request   could  be   presented   to  the                                                                   
Legislative  Budget and  Audit  Committee without  additional                                                                   
authorization.                                                                                                                  
                                                                                                                                
In response to a question by Representative G. Davis, Co-                                                                       
Chair Mulder  estimated that there  is $250 thousand  dollars                                                                   
in interest.                                                                                                                    
                                                                                                                                
Co-Chair  Therriault agreed  that if  the amendment  were not                                                                   
adopted  that  specific  projects  could be  brought  to  the                                                                   
Legislative Budget and Audit Committee for consideration.                                                                       
                                                                                                                                
Representative  J.  Davies  observed   that  the  Legislative                                                                   
Budget and Audit Committee has  become increasingly reluctant                                                                   
to approve projects  without legislative direction.  He added                                                                   
that the conceptual  amendment would give clear  direction to                                                                   
the Legislative Budget and Audit Committee.                                                                                     
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
21.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  22. Co-                                                                   
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
     Add a new section to read:                                                                                                 
                                                                                                                                
     * Sec. . DEPARTMENT OF HEALTH AND SOCIAL SERVICES.                                                                         
                                                                                                                                
      (a) The  sum  of $1.  119.400  is appropriated  to  the                                                                   
      Department of Health  and Social Services.  MatSu Youth                                                                   
      Facility  for   FY2001   operating   costs   from   the                                                                   
      unexpended and unobligated balance of  the interest and                                                                   
      income appropriated to the Alaska  Railroad Corporation                                                                   
      by sec. 145(b),  ch. 208,  SLA 1990,  as added  by sec.                                                                   
      56, ch. 100,  SLA 1997. and  as amended by  sec. 40(b).                                                                   
      ch 2. FSSLA 1999 (Matanuska-Susitna  Borough - $900,000                                                                   
      for economic development).                                                                                                
                                                                                                                                
     (b)  The  sum of $1,119,400  that was appropriated  from                                                                   
     the general fund to the Department  of Health and Social                                                                   
     Services,  juvenile   justice,  for  the   Mat-Su  Youth                                                                   
     Facility  in a  section of  CCS HB 312  is repealed  and                                                                   
     reappropriated to the Department  of Education and Early                                                                   
     Development, early  development, head start  grants, for                                                                   
     the fiscal year ending June 30, 2001.                                                                                      
                                                                                                                                
Representative  J. Davies explained  that the purpose  of the                                                                   
amendment is to make headway on  Head Start funding. He noted                                                                   
that general  funds would be  freed for statewide  Head Start                                                                   
projects.                                                                                                                       
                                                                                                                                
Co-Chair  Mulder argued  against the  amendment. He  observed                                                                   
that  the   Matsu  Youth   facility  would   be  opened.   He                                                                   
acknowledged  that  the  Governor's  request  was  not  fully                                                                   
funded. There  has been level  funding for three  consecutive                                                                   
years.                                                                                                                          
                                                                                                                                
Representative  J.  Davies  pointed out  that  the  amendment                                                                   
would be  a net zero. Fewer  than 30 percent of  the eligible                                                                   
children are being reached.                                                                                                     
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
22.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  23. Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     Add new sections to read:                                                                                                  
     * Sec. . ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT                                                                          
     AUTHORITY. The sum of $4,200,000 that was declared                                                                         
     available for appropriation b~' the board of directors                                                                     
     of the Alaska Industrial Development and Export                                                                            
    Authority as a one-time additional fiscal year 2000                                                                         
    dividend from the unrestricted balance in the Alaska                                                                        
     Industrial Development and Export Authority revolving                                                                      
    fund (AS 44.88.060) is appropriated in sec. of this                                                                         
     Act. (Cite section below)                                                                                                  
                                                                                                                                
     *  Sec.   -.  POWER  COST   EQUALIZATION.  The   sum  of                                                                   
     $4,200,000  is appropriated  from the Alaska  Industrial                                                                   
     Development and Export Authority  revolving fund (AIDEA)                                                                   
     (AS 44.88.060) to the power  cost equalization and rural                                                                   
     electric  capitalization  fund   (AS  42.45.100).  (This                                                                   
     section needs  to be referenced in the  lapse provisions                                                                   
     for capitalizing a fund.)                                                                                                  
                                                                                                                                
Representative J.  Davies explained that the  amendment would                                                                   
appropriate   AIDEA  funds  available   through  a   one-time                                                                   
dividend   to   a  capitalization   fund   for   Power   Cost                                                                   
Equalization.                                                                                                                   
                                                                                                                                
Co-Chair Therriault  observed that  the AIDEA dividend  funds                                                                   
were used to cover pupil transportation.                                                                                        
                                                                                                                                
ANNALEE  MCCONNELL,   DIRECTOR,  OFFICE  OF   MANAGEMENT  AND                                                                   
BUDGET, OFFICE  OF THE GOVERNOR clarified that  the amendment                                                                   
was   prepared  before   funding   was   directed  to   pupil                                                                   
transportation. She spoke in support of an endowment.                                                                           
                                                                                                                                
Representative J. Davies WITHDREW Amendment 23.                                                                                 
                                                                                                                                
Representative  Phillips  spoke   in  support  of  additional                                                                   
funding for the PCE endowment.                                                                                                  
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  24. Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     Add to Page 3 Line 22 (Department of Community and                                                                         
     Economic Development):                                                                                                     
     Rural Power Systems Upgrades               540,000 CF                                                                      
                                                                                                                                
     (ED99)                                                                                                                     
                                                                                                                                
Representative  J.  Davies  noted that  the  legislature  has                                                                   
appropriated general  funds for Rural Power  Systems upgrades                                                                   
in SLA 92, 93,  95, 96 and 97. These funds  have been used to                                                                   
match  other  state,  local and  federal  funds  to  complete                                                                   
projects  in  many  rural  communities.   This  appropriation                                                                   
equates to  $45.0 thousand  dollars each  for projects  in 12                                                                   
rural  communities. Participation  by  the Denali  Commission                                                                   
($7.8 million)  helps expedite  a longstanding state  program                                                                   
to   complete  electrical   system   upgrades.   Improvements                                                                   
include:  re-sizing  generators, re-balancing  of  electrical                                                                   
loads,  line loss  assessments,  line extensions,  powerhouse                                                                   
construction    and   other    electrical   generation    and                                                                   
distribution  system  repairs  or upgrades  which  bring  the                                                                   
systems  into  compliance  with National  Electric  Code  and                                                                   
Rural   Utilities  Services   standards,  prevent   hazardous                                                                   
conditions and enhance system reliability.                                                                                      
                                                                                                                                
Co-Chair Therriault observed that  the Denali Commission does                                                                   
not  require   a  match.  He   pointed  out  that   there  is                                                                   
approximately  $1.4 million  dollars in  the budget  for some                                                                   
state participation.  He argued  that there is  already state                                                                   
participation.                                                                                                                  
                                                                                                                                
Representative J.  Davies acknowledged that there  is limited                                                                   
state  participation  but  argued  that  additional  help  is                                                                   
necessary  to  make the  cost  of  providing power  in  rural                                                                   
Alaska more efficient.                                                                                                          
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
24.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault, Mulder                                                                                          
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative J.  Davies MOVED to  ADOPT Amendment 25.   Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     Add after Page 3 Line 22                                                                                                   
     Department of Community and Economic Development:                                                                          
     Alternative Energy Program (ED99) 150,000 GF                                                                               
                                                                                                                                
Representative  J.   Davies  explained  the   amendment.  The                                                                   
appropriation will  be used in conjunction with  $4.3 million                                                                   
dollars  in  U.S.   Department  of  Energy  grants   for  the                                                                   
development  of wind/fuel  cell  hybrid  systems and  battery                                                                   
storage  applications in  rural  Alaska. He  noted that  this                                                                   
would  be the  appropriate place  to continue  the effort  to                                                                   
obtain  energy.  He observed  that  the  state will  need  to                                                                   
continue   funding   for   PCE    absence   a   technological                                                                   
breakthrough  and maintained  that  this  is the  appropriate                                                                   
place to provide funds.                                                                                                         
                                                                                                                                
Co-Chair  Therriault  pointed  out  that  the  $150  thousand                                                                   
dollars  is not  needed to  capture federal  funds. There  is                                                                   
still $200 to $250 thousand dollars remaining from FY00.                                                                        
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
25.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault                                                                                                  
                                                                                                                                
Co-Chair  Mulder and  Representative Moses  were absent  from                                                                   
the vote.                                                                                                                       
                                                                                                                                
The MOTION FAILED (2-7).                                                                                                        
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  26. Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     Sec.  ____ The sum  of $1,361,300  is appropriated  from                                                                   
     the  general fund  to the  Department  of Education  and                                                                   
     Early  Development for  the child  care subsidy  program                                                                   
     for the fiscal year ending June 30, 2001.                                                                                  
                                                                                                                                
Representative J. Davies explained  that this amendment would                                                                   
provide  funding   to  address  the  projected   waitlist  of                                                                   
families eligible for childcare  assistance in FY01. He noted                                                                   
that the waitlist  is substantial and that  the appropriation                                                                   
would bring  the wait to almost  zero. He added that  if help                                                                   
is not available that some individuals  would need to turn to                                                                   
welfare.                                                                                                                        
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
26.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Davis, Foster, Kohring,                                                                              
          Williams, Therriault                                                                                                  
                                                                                                                                
Co-Chair  Mulder and  Representative Moses  were absent  from                                                                   
the vote.                                                                                                                       
                                                                                                                                
The MOTION FAILED (2-7).                                                                                                        
                                                                                                                                
Amendment 27 was WITHDRAWN.                                                                                                     
                                                                                                                                
Representative J.  Davies MOVED to ADOPT Amendment  28. There                                                                   
was OBJECTION.                                                                                                                  
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     *Sec A. NATIONAL PETROLEUM RESERVE - ALASKA IMPACT                                                                         
     GRANT                                                                                                                      
                                                                                                                                
     PROGRAM. The amount  received by the National  Petroleum                                                                   
     Reserve -  Alaska special  revenue  fund (AS  37.05.530)                                                                   
     under 42 U.S.C. 6508 during the fiscal  year ending June                                                                   
     30,  2001,   is  appropriated   to  the  Department   of                                                                   
     Community and Economic  Development for the  fiscal year                                                                   
     ending June  30,  2001, for  grants  under the  National                                                                   
     Petroleum Reserve - Alaska impact program."                                                                                
                                                                                                                                
Representative  J. Davies stressed  that the language  was in                                                                   
the Senate version.                                                                                                             
                                                                                                                                
Co-Chair Therriault  explained that the intent  is to require                                                                   
the actual  list of  projects that would  be funded  from the                                                                   
NPRA account.                                                                                                                   
                                                                                                                                
Representative Grussendorf  observed that there  are a number                                                                   
of revenues that come to municipalities  in lieu of taxes. He                                                                   
stressed that  this item is  being singled out  for different                                                                   
treatment.                                                                                                                      
                                                                                                                                
Co-Chair Mulder  observed that  discussions with  the Senator                                                                   
from   Kotzebue   resulted   in  discussion   of   a   50/50,                                                                   
local/statewide, approach to the revenues.                                                                                      
                                                                                                                                
Representative J. Davies stressed  that the intent is to help                                                                   
local  communities  that  are  impacted. The  funds  are  not                                                                   
viewed  as  statewide  impact  funds.  He  noted  that  other                                                                   
communities  are  not asked  to  use  their impact  funds  to                                                                   
benefit the  state. Congress  provided the  money as  a local                                                                   
impact.                                                                                                                         
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
28.                                                                                                                             
                                                                                                                                
IN FAVOR: Austerman, Williams, Davies, Grussendorf                                                                              
OPPOSED: Bunde, Davis, Foster, Kohring,                                                                                         
          Therriault, Mulder                                                                                                    
                                                                                                                                
Representative Moses was absent from the meeting.                                                                               
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
(CHANGE, HFC 00 - 138, SIDE 1)                                                                                                
                                                                                                                                
Co-Chair  Mulder  MOVED  to  ADOPT   Amendment  29.  Co-Chair                                                                   
Therriault OBJECTED for the purpose of discussion.                                                                              
                                                                                                                                
     Add a new section to read:                                                                                                 
                                                                                                                                
     *Sec -. ANCHORAGE INTERNATIONAL AIRPORT CONSTRUCTION.                                                                      
     (a)  The amount earned by  the investments authorized by                                                                   
     AS  37.15.410  and  AS 37.15.420  of  the  International                                                                   
     Airports Construction  Fund for the period  February 28,                                                                   
     1999 to June  30, 2001. after an payment  required under                                                                   
     U.S.C. 148, not to exceed  $ 18,140,000, is appropriated                                                                   
     from  the International  Airports  Construction Fund  to                                                                   
     the  Department of  Transportation  & Public  Facilities                                                                   
     for construction  costs of  the Anchorage  International                                                                   
     Airport Terminal Redevelopment Project.                                                                                    
                                                                                                                                
     (b)  The  appropriation  in  section (a)  is  contingent                                                                   
     upon approval  by the  signatory airlines in  accordance                                                                   
     with  the  Anchorage  International   Airport  operating                                                                   
     agreement.                                                                                                                 
                                                                                                                                
Co-Chair Mulder observed that  the amendment was co-sponsored                                                                   
by Representative  J.  Davies. He explained  that the  allows                                                                   
the airport authority to expend  the interest income from the                                                                   
bonds for the cost of the on-going  project. It is contingent                                                                   
on support of the signatory airlines at the airport.                                                                            
                                                                                                                                
Vice Chair Bunde  stated that he would support  the amendment                                                                   
with the conditional approval by the signatory airlines.                                                                        
                                                                                                                                
Representative  J. Davies  pointed out  that the money  would                                                                   
accrue to the project and that  the scope is not changed. The                                                                   
amendment does not  cause an increase in contribution  by any                                                                   
of the operating airlines.                                                                                                      
                                                                                                                                
There being NO OBJECTION, Amendment 29 was adopted.                                                                             
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  30. Co-                                                                   
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
     Add a new section to read:                                                                                                 
     *Sec. Department of Health and Social Services                                                                             
     The sum of  $700,000 is appropriated from  general funds                                                                   
     to the Department of Health  and Social Services for the                                                                   
     Infant Learning Program for  the fiscal year ending June                                                                   
     30, 2001.                                                                                                                  
                                                                                                                                
Representative J. Davies explained that the amendment would                                                                     
support   the  Infant   Learning   Program.  The   conference                                                                   
committee  on  the  Operating  budget  funds  the  Governor's                                                                   
requested  increment of  $700,000  GF to  eliminate the  wait                                                                   
list for this  program with interagency Receipts.  The source                                                                   
of   the  funds   is   the   recent  5-year   Fetal   Alcohol                                                                   
Syndrome/Fetal  Alcohol  Affect  federal  grant  obtained  by                                                                   
Senator  Ted Stevens.  He stressed  that the  concern is  the                                                                   
shift in the funding source.                                                                                                    
                                                                                                                                
•  The  children on  the Infant  Learning  Program wait  list                                                                   
   are 50% delayed and do not tend to have FAS.                                                                                 
                                                                                                                                
•  Alaska has  one of the  nation 's highest  estimated rates                                                                   
   of alcohol-related risk factors and a high rate of                                                                           
   births where alcohol was present during pregnancy.                                                                           
                                                                                                                                
•    The purpose of  the new federal grant is not  to use the                                                                   
funds to supplant  state general funds but provide  funds for                                                                   
a statewide,  comprehensive FAS prevention,  intervention and                                                                   
service delivery  project. Much needs  to be done  to address                                                                   
this entirely preventable cause  of birth defects to Alaska's                                                                   
children.                                                                                                                       
                                                                                                                                
Co-Chair  Mulder  acknowledged  that funding  was  redirected                                                                   
from the FAS program.                                                                                                           
                                                                                                                                
Representative  J. Davies stressed  that the concern  is with                                                                   
the  funding   source  not  the  amount.  He   stressed  that                                                                   
prevention  can save  over  a million  dollars  in a  child's                                                                   
lifetime.                                                                                                                       
  Insert a new section after section 69 (effective dates) as                                                                    
  follows:                                                                                                                      
                                                                                                                                
                                                                                                                                
Representative J. Davies noted  that the appropriation is not                                                                   
fully  funded.  Mr.  Spencer observed  that  there  would  be                                                                   
enough funds  to get  started. He  noted that the  department                                                                   
can identify a shortfall as the project proceeds.                                                                               
                                                                                                                                
There being NO OBJECTION, Amendment 32 was adopted.                                                                             
                                                                                                                                
Representative Williams MOVED to ADOPT Amendment 33. Co-                                                                        
Chair Therriault OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
     Sec. 1 Dept of Transportation & Public Facilities                                                                          
     Page 19, line 8                                                                                                            
     Alaska Marine Highway System:                                                                                              
     Overhaul, Rehabilitation, and Mandatory Training                                                                           
      4,800,000                                                                                                                 
                                                                                                                                
Representative  Williams  explained  that  the  appropriation                                                                   
supports   annual   vessel  overhaul   and   shore   facility                                                                   
maintenance programs - ($450,000).  He argued that the cut in                                                                   
vessel  maintenance  would be  spread  across  the fleet  and                                                                   
hasten  the continued  deterioration of  the aging ships.  He                                                                   
noted that  the remaining  $150,000 thousand  dollars  is for                                                                   
Standards  for   Training,  Certification   and  Watchkeeping                                                                   
(STCW)  that would  be  reduced by  a  third ($150,000).  The                                                                   
Alaska  Marine  Highway System  is  on  a fixed  schedule  to                                                                   
ensure compliance  with STCW regulations  by the  February 1,                                                                   
2002   deadline.   Failure   to   achieve   fleet-wide   STCW                                                                   
certification would  jeopardize crew certification  needed to                                                                   
meet summer service requirements in 2002.                                                                                       
                                                                                                                                
Co-Chair Therriault noted that the item is currently flat-                                                                      
funded at last year's level. He maintained his objection.                                                                       
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
33.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Davis, Grussendorf, Williams                                                                                  
OPPOSED:  Bunde,   Foster,   Phillips,   Austerman,   Mulder,                                                                   
          Therriault                                                                                                            
                                                                                                                                
Representative Moses was absent from the meeting.                                                                               
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  34. Co-                                                                   
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
     Department of Natural Resources                                                                                            
     Section 1, page 17, line 16 insert:                                                                                        
     Seismic Data & Interpretation $60.0 GF                                                                                     
                                                                                                                                
Representative J.  Davies explained that the  amendment would                                                                   
place $60  thousand dollars  in the Oil  and Gas  Division to                                                                   
purchase seismic  data. This  is the  only source of  funding                                                                   
for the Division to obtain data  used to evaluate gas and oil                                                                   
potential independent of the industry.                                                                                          
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
34.                                                                                                                             
                                                                                                                                
IN FAVOR: Austerman, Williams, Davies, Grussendorf                                                                              
OPPOSED: Bunde, Davis, Foster, Kohring,Therriault, Mulder                                                                       
                                                                                                                                
Representative Moses was absent from the meeting.                                                                               
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
Representative  J. Davies  MOVED to ADOPT  Amendment  35. Co-                                                                   
Chair Therriault  OBJECTED. Amendment  35 would add  projects                                                                   
to  the  list  of projects  authorized  with  AHFC  bonds  or                                                                   
general funds under HB 281. The  appropriation would take the                                                                   
first 10  projects under school  construction and  finish the                                                                   
major maintenance  list for the  Department of  Education and                                                                   
Early   Development.   The   funds  would   come   from   the                                                                   
Constitutional Budget Reserve  Account. He maintained that it                                                                   
would be cost effective  to use money that is  only earning 5                                                                   
percent interest.                                                                                                               
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
35.                                                                                                                             
                                                                                                                                
IN FAVOR: Austerman, Williams, Davies, Grussendorf                                                                              
OPPOSED: Bunde, Davis, Foster, Kohring,                                                                                         
          Therriault, Mulder                                                                                                    
                                                                                                                                
Representative Moses was absent from the meeting.                                                                               
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT Amendment 36.                                                                                    
                                                                                                                                
     Add to Department of Transportation and Public                                                                             
     Facilities Anchorage Metropolitan Area Transportation                                                                      
     Study (AMATS) Projects                                                                                                     
                                                                                                                                
     Section 1, Page 28, insert after line 21                                                                                   
     Anchorage: C Street Phase II                                                                                               
     International Airport Road - Diamond Boulevard                                                                             
     Reconstruction 13,000,000 Federal Receipts                                                                                 
                                                                                                                                
Co-Chair Mulder explained that  there are projects within the                                                                   
Anchorage allocation that are  soft in terms of being able to                                                                   
be delivered to the street in  time. The department requested                                                                   
authorization  to   begin  the International   Airport  Road-                                                                   
Diamond Boulevard  Reconstruction if  another project  is not                                                                   
ready.                                                                                                                          
                                                                                                                                
Representative  J.  Davies  pointed out  that  the  amendment                                                                   
would allow  the next project that  is ready to be  funded if                                                                   
     Page 7, line 5:                                                                                                            
     maintenance, and depreciation  costs related to space of                                                                   
     covered  buildings managed under  an agreement  with the                                                                   
     Department of Administration."                                                                                             
                                                                                                                                
     The appropriations  to DOT/PF made by the  Senate in the                                                                   
     operating    budget   are    incompatible   with    this                                                                   
     legislation.  The  intent was  to operate  and  maintain                                                                   
     state buildings  in a more businesslike,  cost-effective                                                                   
     manner,  and to begin  addressing the extensive  backlog                                                                   
     of  deferred  maintenance  problems.  The  diversion  of                                                                   
     funds from  the Public Building Fund for  other purposes                                                                   
     means the  loss of a large  part of the  money collected                                                                   
     to   begin   addressing   these   deferred   maintenance                                                                   
     problems,  resulting in continued  deterioration  of the                                                                   
     facilities.   Some  of   these   problems  are   urgent,                                                                   
     including facilities  that right now have  leaking roofs                                                                   
     and window vapor seals.                                                                                                    
                                                                                                                                
     This  use of  funds to  subsidize  the DOT/PF  operating                                                                   
     budget  would   also  clearly   be  contrary  to   AS  3                                                                   
     7.07.080(e)  which requires  that  the agency  providing                                                                   
     the service  (the Public Building Fund)  must charge for                                                                   
     the services based on actual  costs or a cost allocation                                                                   
     method.                                                                                                                    
                                                                                                                                
Representative  J. Davies maintained  that the  appropriation                                                                   
is an inappropriate use of the Public Building Fund.                                                                            
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
13.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf                                                                                                   
OPPOSED: Austerman, Bunde, Foster, Kohring,                                                                                     
          Williams, Mulder, Therriault                                                                                          
                                                                                                                                
Representatives  Davis   and  Moses  were  absent   from  the                                                                   
meeting.                                                                                                                        
                                                                                                                                
The MOTION FAILED (2-7).                                                                                                        
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment New 17.                                                                       
                                                                                                                                
Representative  J.  Davies  noted that  the  amendment  would                                                                   
ensure that products  are safely consumed and  suggested that                                                                   
it is a cost-effective project.                                                                                                 
                                                                                                                                
Representative  G. Davis spoke  in support of  the amendment.                                                                   
Representative Williams added  his support for the amendment.                                                                   
                                                                                                                                
    Add to the Department of Environmental Conservation                                                                         
     Environmental Health Food Safety Lab. Dividend                                                                             
     Relocation Programming and Site Planning 240.0 AHFC                                                                        
                                                                                                                                
There being NO OBJECTION, Amendment New 17 was adopted.                                                                         
                                                                                                                                
Co-Chair  Therriault MOVED  to  ADOPT Amendment  37 -  Intent                                                                   
Language:                                                                                                                       
                                                                                                                                
     It is the  intent of the legislature that  the Statewide                                                                   
     Library  Electronic  Doorway   appropriation  be  placed                                                                   
    within the operating budget in future fiscal years.                                                                         
                                                                                                                                
     Cook Inlet Information Management  and Monitoring System                                                                   
     $315,000  is  contingent  upon the  department  entering                                                                   
     into a Memorandum of Agreement  with the Municipality of                                                                   
     Anchorage   to  share   the  use   of  the  Tudor   Road                                                                   
     Maintenance  Site,  $200,000  is  appropriated  for  the                                                                   
     costs related to the transfer  of this facility from the                                                                   
     Department  of  Military  and Veterans  Affairs  to  the                                                                   
    Department of Transportation and Public Facilities.                                                                         
                                                                                                                                
     It is  the intent of  the legislature to  spend $188,800                                                                   
     for the  Snowmobile Trails  Development grants  program.                                                                   
     This  grant program  was funded  in FY00  and it is  the                                                                   
     intent  of  the  legislature   to  continue  funding  it                                                                   
     through FY01.  The legislature recommends  that $136,800                                                                   
     of the funds  will be used for grants,  and $52,000 will                                                                   
     be used to administer the grants program.                                                                                  
                                                                                                                                
     It is  the intent  of the  legislature that $149,500  of                                                                   
     this  appropriation  be used  for the  department's  top                                                                   
     priority   and   $40,000   be  used   for   Breathalyzer                                                                   
     equipment.                                                                                                                 
                                                                                                                                
     It   is  the  intent   of  the   legislature  that   the                                                                   
     appropriation   for  the   Small  Business   Development                                                                   
     Program  be placed  in the  operating  budget in  future                                                                   
     fiscal years.                                                                                                              
                                                                                                                                
Co-Chair Therriault  noted that  the amendment adopts  Senate                                                                   
intent language.                                                                                                                
                                                                                                                                
Representative J. Davies MOVED  to AMEND Amendment 37: Change                                                                   
"breathalyzer   equipment"   to  "breath   alcohol   analysis                                                                   
equipment". He  explained that the amendment  would allow the                                                                   
use  of different  brands  through  the adoption  of  generic                                                                   
language. There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
Representative Phillips MOVED to ADOPT Amendment 38.                                                                            
                                                                                                                                
     Organization Grants to Cities (AS 29.05.180(a)                                                                             
     Adak Incorporation Grant       $50,000                                                                                     
                                                                                                                                
Representative Phillips noted  that the community is entitled                                                                   
to  the  state  grant  upon  incorporation.  There  being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair  Mulder  MOVED  to  ADOPT  Amendment  39:  Page  76,                                                                   
section 40,  line 19 change the  reference from HB 304  to HB
418.  He observed  that the  bill site  was incorrect.  There                                                                   
being NO OBJECTION, Amendment 39 was adopted.                                                                                   
                                                                                                                                
Co-Chair Mulder  MOVED to ADOPT Amendment 40:  Delete section                                                                   
24.                                                                                                                             
                                                                                                                                
DENNY  DEWITT, STAFF,  REPRESENTATIVE  MULDER explained  that                                                                   
the amendment would  be to delete section 24(a).  He observed                                                                   
that  the  language  was  inserted  to  authorize  additional                                                                   
funding  to Occupational  Licensing for  FY00. He noted  that                                                                   
similar  language  is  in  the  legislation  for  FY01.  Both                                                                   
sections have  immediate effective dates. If  the legislation                                                                   
were  signed subsequent  to  the  operating budget  it  would                                                                   
disallow funding for FY00.                                                                                                      
                                                                                                                                
Co-Chair Mulder restated his motion  to strike section 24(a).                                                                   
There being NO OBJECTION, Amendment 40 was adopted.                                                                             
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 41                                                                                 
                                                                                                                                
      Page 78, line 20, through page 80, line 16:                                                                               
                                                                                                                                
      Delete all material and insert:                                                                                           
     Sec. 47. LAPSE REAPPROPRIATIONS.  (a) The unexpended and                                                                   
     unobligated  balances, after  the reappropriations  made                                                                   
     by  (b) -  (i) of  this section,  of the  appropriations                                                                   
     made  in sec. 43,  ch. 84,  SLA 1999,  page 50,  line 19                                                                   
     (Budget and Audit Committee  - $6,196,100), and sec. 43,                                                                   
     ch. 84, SLA 1999, page 50,  line 24 (Legislative Council                                                                   
     -  $19,710,100) are  reappropriated  to the  Legislative                                                                   
     Council for administrative  services for the fiscal year                                                                   
     ending June 30, 2001.                                                                                                      
     (b)  The unexpended  and  unobligated  balances, not  to                                                                   
     exceed a  total of $250,000,  of the appropriation  made                                                                   
     in  sec. 43, ch.  84, SLA  1999, page  50, line  19, and                                                                   
     allocated  on  page 50,  line  20 (Legislative  Audit  -                                                                   
     $2,602,000)  and of the appropriation  made in  sec. 43,                                                                   
     ch. 84,  SLA 1999,  page 50, line  24, and allocated  on                                                                   
     page 50, line 25 (Salaries  and Allowances - $4,162,100)                                                                   
     are reappropriated  to the Legislative Budget  and Audit                                                                   
     Committee for a comprehensive  study conducted by or for                                                                   
     the Legislative  Budget and Audit Committee  to evaluate                                                                   
     in-state   residential  educational  alternatives.   The                                                                   
     study  is  to be  delivered  to  the legislature  on  or                                                                   
     before January 15, 2001.                                                                                                   
     (c)  The  unexpended  and unobligated  balances  of  the                                                                   
     appropriation  made in sec. 43,  ch. 84, SLA  1999, page                                                                   
     50,  line  19,  and  allocated   on  page  50,  line  20                                                                   
     (Legislative   Audit   -    $2,602,000)   and   of   the                                                                   
     appropriation  made in sec. 43,  ch. 84, SLA  1999, page                                                                   
     50,  line  24,  and  allocated   on  page  50,  line  25                                                                   
     (Salaries  and Allowances  -  $4,162,100)  that are  not                                                                   
     reappropriated    by   (h)   of   this    section,   are                                                                   
     reappropriated  to  the  Legislative  Budget  and  Audit                                                                   
     Committee  for  operating   costs  for  the  Legislative                                                                   
     Budget and  Audit Committee  for the fiscal  year ending                                                                   
     June 30, 2001.                                                                                                             
                                                                                                                                
Co-Chair Therriault noted that language regarding the                                                                           
legislative   carry-forward    had   an   incorrect   account                                                                   
reference.                                                                                                                      
                                                                                                                                
KARLA SCHOFIELD, DEPUTY DIRECTOR, ACCOUNTING, LEGISLATIVE                                                                       
AFFAIRS AGENCY explained that the amendment references the                                                                      
correct appropriation to capture the carry-forward.                                                                             
                                                                                                                                
There being NO OBJECTION, Amendment 41 was adopted.                                                                             
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT Amendment 42.                                                                                    
                                                                                                                                
     Insert new bill sections to read:                                                                                          
                                                                                                                                
     Sec. A. MATANUSKA-SUSITNA BOROUGH AND ALASKA RAILROAD                                                                      
                                                                                                                                
     CORPORATION. (a) The unexpended  and unobligated balance                                                                   
     of the appropriation made                                                                                                  
     by sec.  145(a), ch. 208,  SLA 1990, as amended  by sec.                                                                   
     55,  ch. 100, SLA  1997 (Alaska  Railroad Corporation  -                                                                   
     $9,000,000), is reappropriated                                                                                             
               (1) one-half to the Department of Community                                                                      
     and Economic  Development for  payment as a  grant under                                                                   
     AS  37.05.3  15  to the  Matanuska-Susitna  Borough  for                                                                   
     Point  MacKenzie port  development  and associated  rail                                                                   
     line improvements within the borough; and                                                                                  
               (2)   one-half    to   the   Alaska   Railroad                                                                   
     Corporation  for the  purchase  of locomotives,  rolling                                                                   
     stock,   and   associated   equipment  and   rail   line                                                                   
     improvements   in  the  Matanuska-Susitna   Borough,  to                                                                   
     facilitate  the  development  of coal  deposits  in  the                                                                   
     Matanuska-Susitna Valley.                                                                                                  
     (b) The unexpended and unobligated balance of the                                                                          
     appropriation  made by sec.  145(b), ch. 208,  SLA 1990,                                                                   
     added by sec. 56, ch. 100,  SLA 1997, as amended by sec.                                                                   
     40(b), ch. 2, FSSLA 1999  (Alaska Railroad Corporation),                                                                   
     is  reappropriated  (1) one-half  to  the Department  of                                                                   
     Community  and Economic  Development  for  payment as  a                                                                   
     grant  under  AS  37.05.315   to  the  Matanuska-Susitna                                                                   
     Borough  for   Point  MacKenzie  port   development  and                                                                   
     associated  rail line improvements  within the  borough;                                                                   
     and                                                                                                                        
          (2) one-half to the Alaska Railroad Corporation                                                                       
     for  the purchase  of  locomotives,  rolling stock,  and                                                                   
     associated equipment  and rail line improvements  in the                                                                   
     Matanuska-Susitna    Borough,    to    facilitate    the                                                                   
     development  of coal deposits  in the  Matanuska-Susitna                                                                   
     Valley.                                                                                                                    
          (c) The interest and income earned by the Alaska                                                                      
     Railroad Corporation  from the investment  or deposit of                                                                   
     the  amounts appropriated  under  (a)(2)  and (b)(2)  of                                                                   
     this section  shall be deposited  into the  general fund                                                                   
     on July 1 of each fiscal year.                                                                                             
                                                                                                                                
     * Sec. B. The appropriations made by sec. A(a)(2) and                                                                      
     A(b)(2) of this Act are for capital projects and lapse                                                                     
     under AS 37.25.020.                                                                                                        
                                                                                                                                
Co-Chair  Therriault  explained  that  the  language  in  the                                                                   
senate version was quite open  in regards to general economic                                                                   
development.   The   amendment   was   tightened   to   speak                                                                   
specifically  to  the  Matanuska-Susitna  Borough  for  Point                                                                   
MacKenzie   port  development   and   associated  rail   line                                                                   
improvements  within the borough.  The interest would  accrue                                                                   
to the general fund.                                                                                                            
                                                                                                                                
Representative  Grussendorf pointed  out  the original  funds                                                                   
came  out of  the Railbelt  Energy Fund.  He maintained  that                                                                   
there was  an understanding that  funding would go  to energy                                                                   
related  projects.  The original  intent  was  to fund  coal-                                                                   
generating activities.                                                                                                          
                                                                                                                                
Co-Chair  Therriault   clarified  that  the   feasibility  of                                                                   
developing coal  deposits in the MatSu hinges  on development                                                                   
of the port.                                                                                                                    
                                                                                                                                
Representative G.  Davis OBJECTED. He observed  that there is                                                                   
a major  coal loading facility  in Seward and  questioned the                                                                   
need  for another  one.  Representative  J. Davies  concurred                                                                   
with Representative G. Davis.                                                                                                   
                                                                                                                                
Co-Chair Mulder  explained that the borough is  attempting to                                                                   
leverage   federal  funds.   He   felt   that  the   economic                                                                   
development would benefit the entire state.                                                                                     
                                                                                                                                
(TAPE CHANGE, HFC 00 - 138, SIDE 2)                                                                                           
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
42.                                                                                                                             
                                                                                                                                
IN FAVOR: Austerman,   Bunde,  Foster,  Phillips,   Williams,                                                                   
          Therriault, Mulder                                                                                                    
OPPOSED: Davis, Davies, Grussendorf,                                                                                            
                                                                                                                                
Representative Moses was absent from the meeting.                                                                               
                                                                                                                                
The MOTION PASSED (7-3).                                                                                                        
                                                                                                                                
Co-Chair  Therriault  noted  that   the  Legislative  Finance                                                                   
Division  would be instructed  to utilize  the AHFC  dividend                                                                   
before expending general funds.                                                                                                 
                                                                                                                                
Representative  J. Davies questioned  if the committee  would                                                                   
take public  testimony. Co-Chair  Therriault stated  that the                                                                   
Committee would not schedule public  testimony. He noted that                                                                   
individual  legislators would  have time  to hear from  their                                                                   
constituents before the issue reached the House floor.                                                                          
                                                                                                                                
Vice Chair Bunde MOVED to report HCS CSSB (FIN) out of                                                                          
Committee as amended.                                                                                                           
                                                                                                                                
HCS CS SB 192 (FIN) was reported out of Committee with a "do                                                                    
pass" recommendation.                                                                                                           
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 1:05 p.m.                                                                                          

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