Legislature(2001 - 2002)

01/24/2002 09:33 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                     SENATE FINANCE COMMITTEE                                                                                 
                         January 24, 2002                                                                                     
                              9:33 AM                                                                                         
SFC-02 # 2, Side A                                                                                                              
SFC 02 # 2, Side B                                                                                                              
CALL TO ORDER                                                                                                               
Co-Chair Dave Donley convened  the meeting at approximately 9:33 AM.                                                            
Senator Dave Donley, Co-Chair                                                                                                   
Senator Jerry Ward, Vice Chair                                                                                                  
Senator Lyda Green                                                                                                              
Senator Gary Wilken                                                                                                             
Senator Alan Austerman                                                                                                          
Senator Lyman Hoffman                                                                                                           
Senator Loren Leman                                                                                                             
Senator Donald Olson                                                                                                            
Also Attending:  REPRESENTATIVE  ELDON MULDER;  KIM DUKE,  Executive                                                          
Director,   Arctic   Power:   DENNY   DEWITT,   Legislative    Aide,                                                            
Representative  Mulder; NICO BUS,  Administrative Services  Manager,                                                            
Division of Support Services, Department of Natural Resources                                                                   
Attending  via Teleconference:  From Anchorage:  STEVE CONN,  Alaska                                                          
Public  Interest  Research  Group;  From  Mat-Su:  JIM  SYKES;  From                                                            
Fairbanks:  FRED BROWN, member, Central  Labor Council; JOHN  BROWN,                                                            
President,  Central  Labor  Council;  DON LOWRY;  LUCI  BEACH;  LEON                                                            
TOMASIC; DEBBIE MILLER                                                                                                          
SUMMARY INFORMATION                                                                                                         
HB 334-APPROP: GRANT TO ARCTIC POWER FOR ANWR                                                                                   
The Committee  heard testimony on  HB 334. The Committee  considered                                                            
but failed to pass one amendment. The bill moved from Committee.                                                                
     CS FOR HOUSE BILL NO. 334(FIN)                                                                                             
     "An Act  making appropriations  for a grant to Arctic  Power to                                                            
     promote the opening  of the Arctic National Wildlife Refuge for                                                            
     oil and gas  exploration and development; and  providing for an                                                            
     effective date."                                                                                                           
[Audio difficulties]                                                                                                            
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
DENNY  DEWITT,  Legislative   Aide,  Representative   Eldon  Mulder,                                                            
informed  the Committee  this bill would  appropriate approximately                                                             
$624,000  of  a  balance   of  $697,000  remaining   from  a  FY  02                                                            
appropriation  for the  gas pipeline  study authorized  through  the                                                            
Legislative Budget and  Audit Committee along with $400,000 from the                                                            
general fund.  He continued that $100,000  of the $400,000  is for a                                                            
video project  on the value of opening the arctic  plain by the City                                                            
of Kaktovik. He  stressed this is important legislation  and "should                                                            
move quickly  as the opportunity  to persuade  a few members  of the                                                            
United  States Senate  is upon us  as they will  be considering  the                                                            
energy  package  rather quickly."  He  noted  the support  the  Bush                                                            
Administration  and  the  fact that  the  Alaska  National  Wildlife                                                            
Refuge  (ANWR) legislation  has  already  passed the  United  States                                                            
House of Representatives.                                                                                                       
KIM DUKE, Executive  Director, Arctic Power, informed  the Committee                                                            
that Arctic Power has been  established for approximately ten years,                                                            
and its  purpose is to open  the coastal plain  of ANWR for  oil and                                                            
gas exploration. She noted  that Arctic Power helped get legislation                                                            
passed  to  open  ANWR  in  1995  in  the  United  States  House  of                                                            
Representatives  and Senate; however  President Clinton vetoed  that                                                            
legislation. She stated  "Arctic Power has been working hard to keep                                                            
members of  Congress educated  on the issues  and have been  waiting                                                            
for the opportune time  to open the campaign up again." She informed                                                            
that Arctic Power received a $2 million grant last year.                                                                        
Ms.  Duke noted  energy bill  legislation  that includes  ANWR,  was                                                            
approved  by  the  United  States  House  of Representatives,   last                                                            
August; however, "the work  to monitor additional provisions to that                                                            
legislation,"  has  exceeded  Arctic  Power's  FY  02  funding.  She                                                            
stressed that  the additional funding  in this request would  enable                                                            
Arctic Power  to target  a "very intensive  three-month campaign  to                                                            
get  the  energy   bill  moved  through   the  Senate."   She  noted                                                            
indications  from the administration  that "now  is the time  to get                                                            
this legislation  moved." She noted  positive reversal of  positions                                                            
from other states'  legislators and supportive noteworthy  newspaper                                                            
editorials such as one in the Chicago Tribune.                                                                                  
Senator  Hoffman  referred  to the  three-month  extensive  campaign                                                            
timeframe  and questioned  that  the date  of June 30,  2006 in  the                                                            
material  provided to  the Committee  exceeds the  normal amount  of                                                            
time for an appropriation.                                                                                                      
Mr. DeWitt  responded  that the  choice of  dates was  based on  the                                                            
historical capital appropriation to Arctic Power.                                                                               
Senator Wilken  asked Ms.  Dukes to explain  the information  on the                                                            
ANWR Program 2001 sheet [copy on file].                                                                                         
Ms. Duke detailed  the total grant  appropriation of $1,957,181.04,                                                             
and that the  breakout of the expenditures  are not included  in the                                                            
total. She detailed what the expenditures included.                                                                             
Senator Wilken asked if all those funds had been spent.                                                                         
Ms. Duke replied that yes,  those funds were expended by December of                                                            
2001,  with the  balance  of  the $2  million  grant not  spent  but                                                            
allocated for expenditure.                                                                                                      
Senator  Wilken clarified  these funds  were allocated  in 2001.  He                                                            
asked what  the oil companies were  doing to support this  endeavor.                                                            
Ms. Duke replied  the oil companies are very involved  in supporting                                                            
Arctic Power in its mission  to have ANWR opened to exploration. She                                                            
informed that the oil companies  have donated large sums of money in                                                            
addition to  hosting congressional  members and staff as  well other                                                            
people  on their  chartered flights  and  tours of  the North  Slope                                                            
facilities, often including  food and lodging. She stressed that the                                                            
oil companies  have been  very accommodating  in these aspects.  She                                                            
informed  that  the oil  companies  have  representation  on  Arctic                                                            
Power's  Board  of  Directors  and  are  involved  in  fund  raising                                                            
Senator Wilken  asked if  Arctic Power documents  these in-kind  and                                                            
monetary donations.                                                                                                             
Ms. Duke responded  this information  is tracked "to an extent  on a                                                            
casual  in-kind list."  She  noted that  Arctic Power  tracks  their                                                            
budget  "very  carefully   in order   to  break  out  percentage  of                                                            
participation for their  annual budget." She stated she could supply                                                            
those  numbers   to  the  Committee.   She  stated  that   the  tour                                                            
contribution  efforts are not tracked,  although Arctic Power  could                                                            
investigate that further "with some effort."                                                                                    
Senator  Wilken  reiterated  this is  a valid  question  that  would                                                            
enable the  people of Alaska  to "know at  what level oil  companies                                                            
and others who benefit from this endeavor" are contributing.                                                                    
Senator Austerman stated  the supporting documentation for this bill                                                            
does not  supply any  information  that shows the  total budget  for                                                            
Arctic Power and  the source of additional operating  funds. He said                                                            
that knowing  what the total  budget is would  be a reference  point                                                            
for  the legislature  and  would be  appropriate  for  use when  the                                                            
public asks legislators  about the state funding of Arctic Power. He                                                            
requested  Arctic  Power to  supply  the  legislature  with a  total                                                            
budget that  reflects "how much money  is being spent and  where the                                                            
money  is coming  from."  He stated  that  this should  include  any                                                            
membership  fees.  He reiterated  this  information  would give  the                                                            
legislature and the public  a "better idea" as to how other entities                                                            
were assisting Arctic Power in its endeavor.                                                                                    
Ms. Duke responded  that Arctic Power's 2001 financial  statement is                                                            
not finalized  yet;  however,  it should  be complete  within a  few                                                            
weeks. She  informed that 47 percent  of the 2001 budget  was funded                                                            
with state funds and 53 percent from other sources.                                                                             
Senator   Austerman  stated   the  report   does  not  include   any                                                            
information regarding  these percentages and he feels  that the fact                                                            
that 53 percent  of Arctic Power's  budget is from other  sources is                                                            
"important information."                                                                                                        
REPRESENTATIVE  ELDON  MULDER  stated  that he  had  discussed  this                                                            
disclosure topic with the  management of Arctic Power and the reason                                                            
behind this  information not being  included in the past  is because                                                            
the management feels this  is confidential information and "it might                                                            
tip  off  their  hand   in  relations  to  strategy  and   strategic                                                            
decisions."  He  continued,  "this  is  a  very  intensive  campaign                                                            
against a very  well-funded extremists  environmental movement  that                                                            
is very active."                                                                                                                
Representative  Mulder continued that Arctic Power  would be willing                                                            
to  share  this  information  in  a  confidential  manner  with  the                                                            
Senator  Austerman  voiced  understanding   of  the  situation,  but                                                            
stressed  that the  public asks  these  questions, and  it would  be                                                            
beneficial to legislators to have the information.                                                                              
Representative Mulder agreed.                                                                                                   
Senator Hoffman  noted that a letter  [copy not provided]  addressed                                                            
to Co-Chair Donley from  Commissioner Pat Pourchot of the Department                                                            
of Natural  Resources, dated  January 23, 2002,  states there  is an                                                            
unused  balance of  $600,000,  yet the  appropriation  specifies  an                                                            
unused balance of $697,000.                                                                                                     
Representative Mulder explained  the amount included in the bill was                                                            
originally   $800,000,   but   after   consultation   with   Senator                                                            
Therriault,   Chair  of  the  Legislative   Budget  &  Audit   LB&A)                                                            
Committee, who  is actually the holder of the funds,  the number was                                                            
revised  to $700,000  as  a more  accurate  balance. Representative                                                             
Mulder  stated  that as  of  today, "this  amount  is  still a  good                                                            
number." He  stated the amount included  in Commissioner  Pourchot's                                                            
letter  might  be  a  reflection  that  the  Department   envisioned                                                            
spending   this  money   another   way;  however,   this   requested                                                            
appropriation   amount  "would  stand"   as  Representative   Mulder                                                            
understood  from Senator Therriault  that the gas pipeline  work was                                                            
"basically finished," and  that the funds should be reallocated to a                                                            
"project of a similar fashion."                                                                                                 
AT EASE 9:52 AM/9:56 AM                                                                                                         
[Audio difficulties]                                                                                                            
NICO  BUS, Administrative   Services Manager,  Division  of  Support                                                            
Services, Department of  Natural Resources, informed that the unused                                                            
funds being  transferred to  Arctic Power is  a portion of  the $1.5                                                            
million appropriation  for  gasline work. He  informed that  for the                                                            
past seven  months, he had  been responsible  for the accounting  of                                                            
this money. In  answer to the question of whether  there is $600,000                                                            
or $700,000 remaining  of the allocation, he stated  that at the end                                                            
of  December,  after  working  on  the  expenditures  with  all  the                                                            
agencies  involved,  "the  total  balance   remaining  was  $600,000                                                            
including accruals."  He continued  that the final "January  through                                                            
June  budget"  for  the  Gas  Pipeline  Office,  combined  with  the                                                            
monetary  commitments   from  oil  producers  to  the  gas  pipeline                                                            
project, brings  the "total funds to $900,000, although  this number                                                            
is not  certain." He continued  the Department's  recommendation  is                                                            
that the gas pipeline  remaining balance "be expensed  into FY 03 to                                                            
help cover  costs incurred  for closing the  pipeline office  or for                                                            
future operations of the Gas Pipeline Office."                                                                                  
Senator  Ward asked  if the  Gas Pipeline  Office  is authorized  to                                                            
spend more than was approved by the Chair of LB&A Committee.                                                                    
Mr. Bus  responded that the  last agreement  with the Chair  of LG&A                                                            
Committee was  that the pipeline office has up to  $900,000 to spend                                                            
in FY 02.                                                                                                                       
Mr. Bus answered a question  of Senator Ward's noting that the Chair                                                            
of the  LB&A Committee "was  making an assumption  that some  of the                                                            
accruals were  not going to materialize,"  whereas Mr. Bus  believes                                                            
there "will be  more accruals than anticipated." He  stated that the                                                            
office  is "trying  to finalize  those  accruals" to  have a  firmer                                                            
balance figure.                                                                                                                 
Senator  Ward   asked  if  the  most   recent  agreement   with  the                                                            
Legislative Budget  and Audit Committee meant that  the Gas Pipeline                                                            
Office "was  not authorized to spend  more than a certain  amount of                                                            
money and would  need authorization from the Legislative  Budget and                                                            
Audit Committee Chair to exceed that."                                                                                          
Mr. Bus agreed  that was the agreement, and the Office  had received                                                            
"two  approvals; one  for $585,000  and  one for  $430,000 which  is                                                            
close to  $1.1 million."  He said  the Office has  gone back  to the                                                            
Chair and informed him  that it appeared the Office would be getting                                                            
"$200,000 of the  commitments back that would adjust  the agreements                                                            
to $900,000."  He informed that the Office "did not  agree to adjust                                                            
lower than that.                                                                                                                
Senator Ward  responded that the office  was not in the position  of                                                            
getting the  Chair to agree,  but rather were  "in the situation  of                                                            
getting  authorization  from the chairman  to go  to whatever  limit                                                            
there was."                                                                                                                     
Mr.  Bus said  "the agreement  was  now in  excess  of $1.1  million                                                            
dollars, and  that the Office had  been able to adjust that  down to                                                            
$900,000."  He continued  that the  "amount might  be adjusted  even                                                            
lower, but  the Office is not in a  position currently to  determine                                                            
Co-Chair Donley announced  that teleconference testimony would begin                                                            
and would be limited to one minute.                                                                                             
FRED  BROWN,   member,  Alaska  State   Employees  Association   and                                                            
Fairbanks Central  Labor Council, testified via teleconference  from                                                            
Fairbanks to  urge support of HB 334.  He stated there is  no better                                                            
investment  the legislature "can make  than in the jobs"  that would                                                            
result from exploration  on the Arctic Coastal Plain  and "no better                                                            
economic  stimulus  package  for America  than  the passage  of  the                                                            
energy bill in the United States Senate."                                                                                       
JOHN BROWN  President, Fairbanks  Central  Labor Council,  testified                                                            
via teleconference  from Fairbanks in support of HB  334. He stated,                                                            
"it makes sense  for working families in Alaska."  He stated that if                                                            
the  United   States  Senate  approves   the  energy  package,   the                                                            
corresponding  jobs would be  "good jobs,"  and it is imperative  to                                                            
support  it. He said  that opposition  to the  energy bill is  "well                                                            
organized,  well funded and is working  hard to prevent the  passage                                                            
of this legislation  in Washington." He stressed that  oil companies                                                            
have proven they can conduct "responsible development."                                                                         
DON  LOWRY,   representing   Operating  Engineers,   testified   via                                                            
teleconference  from Fairbanks,  in support  of opening ANWR  and to                                                            
stress  he fully  supports  HB  334. He  feels  this small  area  of                                                            
development would have "little impact on the environment."                                                                      
JIM SYKES testified  via teleconference  from Mat-Su and  referenced                                                            
comments  in his  faxed correspondence  to  the Committee  [copy  on                                                            
file] that states  his opposition to HB 334. He reiterated  that oil                                                            
produced from  the Arctic Refuge "generates 44 percent  less revenue                                                            
per barrel than oil produced on state lands."                                                                                   
STEVE  CONN   testified   via  teleconference   from  Anchorage   in                                                            
opposition  to  HB  334.  He  cited  that  "corporate   welfare  and                                                            
pandering  have created  the  current fiscal  crisis,"  the lack  of                                                            
investigation into high  gas prices, no investigation of undeveloped                                                            
property  under   lease  to  the   state,  and  no  accurate   state                                                            
LUCI BEACH  testified via teleconference  from Fairbanks  and stated                                                            
her  opposition   to  funding   an  oil   lobby  group  instead   of                                                            
appropriating  money  to  Arctic   Village  which  is  dedicated  to                                                            
protecting  lifestyles and caribou  herds, or to education  programs                                                            
for children.  She voiced  her opposition  to HB  334 and said  that                                                            
Arctic Power  "should look first to  oil companies for funding,  not                                                            
the state."                                                                                                                     
LEON   TOMASIC,   retired   construction   worker,   testified   via                                                            
teleconference  from Fairbanks in support of HB 334.  He stated that                                                            
oil  companies have  "continually  developed  environmentally  sound                                                            
ways to  do things." He said  this is "a  chance for good  jobs, not                                                            
service jobs."                                                                                                                  
DEBBIE  MILLER  testified via  teleconference  from  Fairbanks  that                                                            
things  are looking  bright on the  North Slope  with increased  oil                                                            
flows this  year. She informed that  the state has 14 million  acres                                                            
of land set aside for oil  development and the state will lose money                                                            
if  ANWR is  opened.  She said  that  "Arctic  Power is  a  lobbying                                                            
organization"  and  she  does not  support  HB  334. She  urged  the                                                            
Committee to  seek legal council before  holding any action  on this                                                            
Senator  Olson voiced  concern  that if  sufficient  funds were  not                                                            
available  from the Department  of Natural  Resources to cover  this                                                            
request, he  would, nonetheless, want  Kaktovik to get full  funding                                                            
for their project.                                                                                                              
Senator  Austerman  asked what  would happen  if  the Department  of                                                            
Natural  Resources  "does  not have  this  level of  unused  funds,"                                                            
specifically if  Arctic Power would "come up short"  if the $100,000                                                            
was designated to fund the Kaktovik project.                                                                                    
Mr. DeWitt said he had  spoken with Senator Therriault's staff today                                                            
and  was  assured  there is  $697,000  available  for  this  funding                                                            
request. He continued  that if the available funding  were less, the                                                            
appropriation  to  Arctic  Power  would  be  reduced;  however,  the                                                            
funding  for Kaktovik  would  be from  general  funds  and would  be                                                            
Senator Austerman  clarified  Arctic Power  would be the one  short-                                                            
funded in this case.                                                                                                            
Mr. DeWitt said, "Yes, that would be the expectation."                                                                          
Senator Hoffman asked if  the dollars spent included those that have                                                            
been encumbered.                                                                                                                
Mr. DeWitt  responded  the Legislative  Budget  and Audit  Committee                                                            
staff  in Senator  Therriault's  office  indicated  confidence  that                                                            
there would be $697,000 available.                                                                                              
Amendment  #1: This  amendment inserts  language on  page 1,  line 2                                                            
following "development".  The amended  bill title reads as  follows.                                                            
     An Act  making appropriations  for a grant  to Arctic  Power to                                                            
     promote the opening  of the Arctic National Wildlife Refuge for                                                            
     oil   and   gas  exploration   and   development;   making   an                                                            
     appropriation   for  tourism  marketing  programs;   making  an                                                            
     appropriation for  salmon marketing programs; and providing for                                                            
     an effective date.                                                                                                         
This  amendment  also inserts  two  new  bill  sections to  read  as                                                            
          Sec. 2. TOURISM INDUSTRY ASSISTANCE PACKAGE. (a) The sum                                                              
     of  $800,000  is appropriated  from  the  general  fund to  the                                                            
     Department  of  Community  and  Economic  Development  for  the                                                            
     fiscal  years ending  June  30, 2002,  and June  30, 2003,  for                                                            
     payment  as a grant  under AS  37.05.316 to  the Alaska  Travel                                                            
     Industry  Association for additional tourism  marketing efforts                                                            
     to  mitigate  the  economic   impacts  to  the  Alaska  tourism                                                            
     industry  from the September  11, 2001  terrorist attacks.  The                                                            
     amount  appropriated in this  subsection includes $250,000  for                                                            
     international tourism marketing.                                                                                           
          (b) The sum of $200,000 is appropriated from the general                                                              
     fund   to  the   Department   of  Transportation   and   Public                                                            
     Facilities, Alaska  Marine Highway system, for the fiscal years                                                            
     ending  June  30,  2002,  and June  30,  2003,  for  additional                                                            
     marketing  efforts  to mitigate  the  economic  impacts to  the                                                            
     Alaska tourism industry  from the September 11, 2001, terrorist                                                            
          Sec. 3.  SALMON INDUSTRY ASSISTANCE PACKAGE. (a) The sum                                                              
     of  $1,000,000 is  appropriated  from the general  fund to  the                                                            
     Department  of  Community  and  Economic  Development,   Alaska                                                            
     Seafood Marketing  Institute, for the fiscal  years ending June                                                            
     30,   2002,   and  June   30,   2003  to   implement   expanded                                                            
     international  salmon  niche marketing  programs in  developing                                                            
     overseas markets,  to conduct strategic salmon market analysis,                                                            
     and  for grants to  develop and support  regional salmon  niche                                                            
     marketing programs.                                                                                                        
Senator Hoffman voiced  full support of the HB 334 appropriation and                                                            
felt that the  Committee should make  sure that the economic  health                                                            
of Alaska is fully  addressed. He offered Amendment  #1 and detailed                                                            
the  amendment  funding. He  noted  the governor's  request  of  $10                                                            
million  each  for the  salmon  industry  and tourism  industry.  He                                                            
stated that time was of  the essence and the governor's deadline for                                                            
the fast track supplemental was in mid February.                                                                                
Senator Hoffman's  voiced concern  that the potential impact  to the                                                            
state of Alaska  would be more than  one third of a billion  dollars                                                            
in business  losses to the  travel industry.  He stated that  people                                                            
are "making travel  plans or not making them" now.  He stressed that                                                            
in addition to  the immediate travel industry loss,  the "multiplier                                                            
factor" would be far-reaching.                                                                                                  
He noted that  the Alaska Seafood Marketing Industry  (ASMI) needs a                                                            
head start  in their marketing and  cannot wait for the Legislature                                                             
to take action in mid or late March.                                                                                            
Senator Hoffman stated  that although he supports the $1 million for                                                            
Arctic Power  his concern  is that by giving  money to this  effort,                                                            
the state  might end up  taking money from  the salmon industry.  He                                                            
continued that the prospect  of Arctic Power being successful in its                                                            
endeavor is  good and the subsequent  profit for the state  would be                                                            
"very  high."  He stated  that  the  benefits  from the  salmon  and                                                            
tourism industry  are "even better" than those from  ANWR. He stated                                                            
that  the  legislature  should  support  these  industries  for  the                                                            
"economic  health  of  state."  He  stated  these  three  industries                                                            
provide the highest  number of jobs in the state of  Alaska and this                                                            
is his reason for submitting  this amendment. He continued that when                                                            
the governor submits  his supplemental the remainder  of the funding                                                            
could be addressed.                                                                                                             
Senator Hoffman moved for adoption of the amendment.                                                                            
Senator Austerman objected.                                                                                                     
Co-Chair Donley asked what  is the funding source for subsection (b)                                                            
in Section 2.                                                                                                                   
Senator Hoffman  replied that it is  the same funding source  as the                                                            
House of Representatives appropriation.                                                                                         
SFC 01 # 2, Side B 10:26 AM                                                                                                     
Co-Chair Donley questioned  if this is a reappropriation from the FY                                                            
02  Marine Highway  System  appropriation  and  the proposed  FY  03                                                            
Senator Hoffman restated Section 2 language.                                                                                    
Co-Chair Donley informed  that he was currently working on the FY 03                                                            
operating   budget  with  Representative   Mulder,  and   they  were                                                            
investigating a funding  assistance package for tourism. He stressed                                                            
that a  timeframe for identifying  a funding  source was  uncertain;                                                            
however, it  was being addressed.  He stated his comments  are not a                                                            
commitment  or an assurance that the  funds would be available,  but                                                            
rather notification that the funds are being sought.                                                                            
Senator  Hoffman asked Co-Chair  Donley what  an expected  timeframe                                                            
might be for addressing this funding.                                                                                           
Co-Chair  Donley  responded  that legislation  regarding  a  tourism                                                            
funding source  might be introduced the following  week in the House                                                            
of Representatives.  He stressed  he was not  promising that  if the                                                            
Committee  does not  adopt this  amendment, another  funding  source                                                            
would be available.                                                                                                             
Senator  Hoffman  asked  if  there  was  any  similar  effort  being                                                            
advanced for the salmon industry.                                                                                               
Co-Chair Donley commented he was not aware of any.                                                                              
Co-Chair  Donley  said  the Committee  should  recognize  that  this                                                            
amendment would  require a title change to the bill,  as it does not                                                            
fit under the  original title from the House of Representatives.  He                                                            
stated this title change would have to be separate legislation.                                                                 
Senator Leman  expressed appreciation for Senator  Hoffman's purpose                                                            
to support the tourism  and salmon industries; however, he could not                                                            
support this  amendment at this time.  He continued there  are other                                                            
vehicles available  for possible funding, and he felt  amending this                                                            
bill is inappropriate  for that purpose. He stated  he would like to                                                            
continue conversations on how to support these industries.                                                                      
Co-Chair Donley voiced appreciation for Senator Hoffman's                                                                       
concerns. He stated that this bill needs to be advanced to the                                                                  
Senate floor; however, the tourism and salmon industries'                                                                       
situations require more discussion. He stated he opposes the                                                                    
amendment as this time.                                                                                                         
A roll call was taken on the motion.                                                                                            
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
OPPOSED:  Senator Austerman,  Senator Green,  Senator Leman  Senator                                                            
Ward, Senator Wilken, and Co-Chair Donley                                                                                       
ABSENT: Co-Chair Kelly                                                                                                          
The motion FAILED (2-6-1)                                                                                                       
The amendment FAILED to be adopted.                                                                                             
Senator  Ward  offered  a  motion  to  move CS  HB  334  (FIN)  from                                                            
Senator  Austerman objected.  He stated  Arctic  Power, the  tourism                                                            
industry,  the salmon  industry, and  numerous  other entities  need                                                            
money.  He opined the  state needs  to address  an "overall  forward                                                            
looking financial plan" for the state.                                                                                          
Senator Ward agreed  with Senator Austerman that the  state needs an                                                            
overall plan;  however, he  asserted HB 334  is part of the  overall                                                            
plan. He stated  ANWR is one of the key elements to  the state plan,                                                            
and  it needs  to be  addressed  on a  national  level, as  it is  a                                                            
benefit for all of Alaska today and in the future.                                                                              
A roll call was taken on the motion.                                                                                            
IN FAVOR:  Senator  Green, Senator  Hoffman,  Senator Ward,  Senator                                                            
Wilken, Co-Chair Donley, Senator Leman, Senator Olson                                                                           
OPPOSED: Senator Austerman                                                                                                      
ABSENT: Co-Chair Kelly                                                                                                          
The motion PASSED (7-1-1)                                                                                                       
The bill MOVED from committee.                                                                                                  
Senator Olson voiced appreciation to the Committee for the support                                                              
of this bill on behalf of the community of Kaktovik.                                                                            
Co-Chair Dave Donley adjourned the meeting at 10:35 AM.                                                                         

Document Name Date/Time Subjects