HOUSE BILL NO. 370 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date." DEPARTMENT OF FISH AND GAME Representative Hoffman MOVED to ADOPT AMENDMENT 1A (copy on file). He explained that amendment 1A would add $40.0 thousand dollars for the Yukon River Drainage Association. A roll call vote was taken on the MOTION. IN FAVOR: Foster, Brown, Hoffman, Grussendorf, MacLean OPPOSED: Hanley, Martin, Parnell, Therriault, Larson Representative Navarre was absent from the vote. The MOTION FAILED (5-5). Co-Chair MacLean MOVED to ADOPT AMENDMENT 6 (copy on file). She explained that amendment 6 would add $300.0 thousand dollars for Fisheries Development. She noted that the Department of Fish and Game will be forced to reduce efforts for the Alaska Yukon/Kuskokwim Initiative and delete funding for the Sikusuilaq Hatchery if the amendment is not adopted. Representative Hanley noted that the Sikusuilaq Hatchery was given a low priority by the Department of Fish and Game. MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND GAME stated that if the amendment is adopted the Commissioner intends to add $90.0 thousand dollars to fund the hatchery at $390.0 thousand dollars. He clarified that program receipts may be a future option for hatchery funding, pending legislation. He observed that Snettisham and Sikusuilaq are the last hatcheries to receive state support. Co-Chair MacLean emphasized the need to allow sufficient time for the regional aquaculture association to take over the hatchery. A roll call vote was taken on the MOTION to adopt AMENDMENT 6. IN FAVOR: Brown, Grussendorf, Hoffman, Foster, MacLean, Larson OPPOSED: Hanley, Martin, Parnell, Therriault 2 The MOTION PASSED (6-4). Representative Therriault MOVED to RESCIND the Committee's action in failing to adopt AMENDMENT 2. Amendment 2 would eliminate the grant to the Walrus Commission. Co-Chair MacLean OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Hanley, Martin, Parnell, Therriault, Larson OPPOSED: Brown, Foster, Grussendorf, Hoffman, MacLean Representative Navarre was absent from the vote. The MOTION FAILED (5-5). Representative Grussendorf MOVED to RESCIND the Committee's action in failing to adopt AMENDMENT 3. He noted that amendment 3 would restore $460.0 thousand dollars to allow operations of the hatchery until its transfer to the Northern Southeast Regional Aquaculture Association. Mr. Campbell observed that it would cost $4.0 million dollars to tear the hatchery down and restore the habitat to its natural state. If the hatchery is privatized there would be no need to tear it down. Representative Grussendorf emphasized the effect on the Canadian/U.S. Salmon Treaty. He maintained that the hatchery should be moth balled to allow future use. Mr. Campbell stressed that the hatchery needs to stay operational if it is to be turned over to a non-profit. He discussed the effect on fishery stock and associated job dependency. He addressed the importance of the hatchery on the U.S./Canada Salmon Treaty. Discussion pursued in regards to funding and privatization of the hatchery. REPRESENTATIVE FRAN ULMER urged the Committee to support amendment 3. She stressed that the hatchery is a valuable state asset that makes a significant contribution to the economy of Southeast Alaska. She stressed the importance of the hatchery to the U.S./Canada Salmon Treaty and fishermen of Southeast Alaska. A roll call vote was taken on the MOTION to rescind the Committee's action in failing to adopt AMENDMENT 3. IN FAVOR: Brown, Hoffman, Grussendorf, MacLean, Larson OPPOSED: Foster, Hanley, Martin, Parnell, Therriault 3 Representative Navarre was absent from the vote. The MOTION FAILED (5-5). Representative Therriault MOVED to ADOPT AMENDMENT 5 at an amended level of $75.0 thousand dollars (copy on file). Amendment 5 would impose a $75.0 thousand dollar unallocated reduction to the Division of Habitat. Mr. Campbell asserted that amendment 5 would have a significant adverse effect on development in the state and place the state's waters at risk. He emphasized that the Division of Hatchery is at critical mass. A roll call vote was taken on the MOTION to adopt AMENDMENT 5. IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault, Larson OPPOSED: Brown, Hoffman, Grussendorf, MacLean Representative Navarre was absent from the vote. The MOTION PASSED (6-4). Co-Chair MacLean MOVED to close the Department of Fish and Game's FY 95 operating budget. There being NO OBJECTION, it was so ordered. (Tape Change, HFC 94-107, Side 2) UNIVERSITY OF ALASKA Representative Therriault MOVED to ADOPT AMENDMENT 9 (copy on file). He explained that amendment 9 would add legislative intent to direct the University of Alaska to continue initiatives to reduce the overall cost of instruction; increase faculty and staff productivity; reduce the level of academic administration; increase the annual level of building maintenance; enhance the transfer of credits between campuses; and assure that all unnecessary program duplication is eliminated. There being NO OBJECTION, AMENDMENT 9 was adopted. Co-Chair MacLean MOVED to close the University of Alaska's FY 95 operating budget. There being NO OBJECTION, it was so ordered. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Co-Chair MacLean MOVED to close the Department of 4 Transportation and Public Facilities's FY 95 operating budget. There being NO OBJECTION, it was so ordered. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Co-Chair MacLean provided members with a letter from Guy Bell regarding the Real Estate Surety Fund (copy on file). GUY BELL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT discussed the need to add $100.0 thousand dollars in appropriation authority to allow the payment of claims from the Real Estate Surety Fund. He explained that the Fund is composed of real estate licensing. Co-Chair MacLean noted that amendment 3 deleted funding for the International Trade Offices. PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT stressed the importance of maintaining international trade offices. He noted that the international trade for the state of Alaska is $3.5 billion dollars a year. Mr. Bell recommended that the addition of $100.0 thousand dollars for appropriation authority to pay claims from the Real Estate Surety Fund be placed in the front section of HB 370. Discussion pursued in regards to the addition of this item in the front section. FRONT SECTION Representative Martin MOVED to ADOPT AMENDMENT 9 to add $100.0 thousand dollars in appropriation authority to allow the payment of claims from the Real Estate Surety Fund by the Department of Commerce and Economic Development. There being NO OBJECTION, it was so ordered. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Co-Chair MacLean MOVED to RESCIND the Committee's action in adopting AMENDMENT 3 (copy on file). Representative Brown emphasized the need to make priorities. She recommended that the amendment not be rescinded. A roll call vote was taken on the MOTION. IN FAVOR: Foster, Grussendorf, Hoffman, Martin, Larson, MacLean OPPOSED: Brown, Hanley, Therriault 5 Representatives Parnell and Navarre were absent from the vote. The MOTION PASSED (6-3). A roll call vote was taken on the main MOTION. IN FAVOR: Brown, Hanley, Therriault OPPOSED: Foster, Grussendorf, Hoffman, Martin, Larson, MacLean Representatives Parnell and Navarre were absent from the vote. The MOTION PASSED (6-3). Co-Chair MacLean MOVED to close the Department of Commerce and Economic Development's FY 95 operating budget. There being NO OBJECTION, it was so ordered. OFFICE OF THE GOVERNOR Co-Chair Larson MOVED to ADOPT AMENDMENT 3 (copy on file). He noted that the amendment would reduce the Office of the Governor by $636.6 thousand dollars. MIKE NIZICH, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, OFFICE OF THE GOVERNOR reviewed amendment 3. Discussion pursued in regards to the roll forward of FY 94 funding in the Office of the Governor. There being NO OBJECTION, AMENDMENT 3 was adopted. Co-Chair MacLean MOVED to close the Office of the Governor's FY 95 operating budget. There being NO OBJECTION, it was so ordered. ALASKA COURT SYSTEM Representative Therriault MOVED to ADOPT AMENDMENT 6 (copy on file). Amendment 6 would reduce contractual for Administrative Support by $150.0 thousand dollars. CHRIS CHRISTENSEN, ALASKA COURT SYSTEM explained that lease hold money will be used to pay the operations and maintenance on the Anchorage Times Building for the first year. He estimated the amount to lapse at $100.0 thousand dollars. He added that moving costs were not included. He requested that the amendment be amended to reflect moving costs. Co-Chair MacLean MOVED to AMEND amendment 6 to delete 6 "$150.0" and insert "$100.0" thousand dollars. Representative Hanley OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, Foster, Parnell, MacLean, Larson OPPOSED: Hanley, Therriault, Martin Representative Navarre was absent from the vote. The MOTION PASSED (7-3). Representative Parnell MOVED to AMEND amendment 6 as amended to add $90.0 thousand dollars to fund a prosecutor in the Kenai office to work on domestic violence and sexual assault cases. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, Martin, Parnell, MacLean, Larson OPPOSED: Hanley, Therriault, Foster Representative Navarre was absent from the vote. The MOTION PASSED (7-3). A roll call vote was taken on the MOTION to adopt AMENDMENT 6 as amended. IN FAVOR: Brown, Grussendorf, Hoffman, Hanley, Martin, Parnell, Therriault, MacLean, Larson OPPOSED: Foster Representative Navarre was absent from the vote. The MOTION PASSED (9-1). Co-Chair MacLean MOVED to close the Alaska Court System's FY 95 operating budget. There being NO OBJECTION, it was so ordered. DEPARTMENT OF LAW Co-Chair Larson WITHDREW AMENDMENT 1 and 2. Representative Hoffman MOVED to ADOPT AMENDMENT 3 (copy on file). He explained that amendment 3 would add $573.1 thousand dollars for the Fair Business Practices component. Representative Martin OBJECTED. A roll call vote was taken on the MOTION. 7 IN FAVOR: Brown, Foster, Grussendorf, Hoffman, MacLean, Larson OPPOSED: Hanley, Martin, Parnell, Therriault Representative Navarre was absent from the vote. The MOTION PASSED (6-4). Co-Chair MacLean MOVED to close the Department of Law's FY 95 operating budget. There being NO OBJECTION, it was so ordered. DEPARTMENT OF HEALTH AND SOCIAL SERVICES JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES discussed the medicaid priority list, in response to a question by Representative Brown. She explained that the total reduction in medicaid services is $4.6 million dollars. There would be 10 services dropped from the list. (Tape Change, HFC 94-108, Side 2) Ms. Clarke reviewed services which would be deleted. Discussion pursued in regards to the services which would be dropped. Co-Chair MacLean MOVED to close the Department of Health and Social Services' FY 95 operating budget. There being NO OBJECTION, it was so ordered. LEGISLATURE PAM STOOPS, EXECUTIVE DIRECTOR, LEGISLATIVE AFFAIRS AGENCY observed that the future legislators will be given the option to adopt the increased per diem rate. Representative Martin spoke against adoption of the session per diem rate increase. Co-Chair Larson MOVED to RESCIND the Committee's action in deleting $405.6 thousand dollars for session per diem. Representative Martin OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Foster, Hoffman, Larson, MacLean OPPOSED: Therriault, Brown, Grussendorf, Hanley, Martin Representative Navarre was absent from the vote. The MOTION FAILED (5-5). 8 Co-Chair MacLean MOVED to close the Legislature's FY 95 operating budget. There being NO OBJECTION, it was so ordered. DEPARTMENT OF ENVIRONMENTAL CONSERVATION Representative Brown MOVED to close the Department of Environmental Conservation's FY 95 operating budget. Representative Therriault OBJECTED. Representative Therriault spoke against the adoption of AMENDMENT 8 (copy on file). Amendment 8 would fund an $246.1 thousand dollars increment for environmental crime investigation from the Storage Tank Assistance Program. BOB POE, DIRECTOR, DIVISION OF INFORMATION AND ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION spoke in support of amendment 8. He observed that the Department of Law must prioritize violent crimes. He stressed the importance of funding for environmental crime investigation. He noted that funding would be RSA'd to the Departments of Law and Public Safety. Representative Brown spoke in support of amendment 8. She observed that the state must demonstrate enforcement effort in order to retain primacy. A roll call vote was taken on the MOTION to close the Department of Commerce and Economic Development's FY 95 operating budget. IN FAVOR: Parnell, Brown, Grussendorf, Hoffman, Martin, MacLean OPPOSED: Therriault, Foster, Hanley, Larson Representative Navarre was absent from the vote. The MOTION PASSED (6-4). HB 370 was HELD in Committee for further discussion.