HOUSE BILL NO. 113 "An Act extending lapse dates for certain prior year appropriations; making supplemental, capital, and special appropriations; and providing for an effective date." Co-Chair Hanley provided members with letter from the Office 1 of Management and Budget, 3/19/97. The letter contained proposed amendments to be included in HB 113 (copy on file). DEPARTMENT OF REVENUE WILSON CONDON, COMMISSIONER, DEPARTMENT OF REVENUE explained that the Department does not need section 16(b), to cover permanent fund dividend payments. Further review by the Department indicated that sufficient funds exist to cover expected permanent fund dividend payments. Representative Martin MOVED to delete sec. 16(b), DEPARTMENT OF REVENUE, earnings reserve account appropriation. There being NO OBJECTION, it was so ordered. DEPARTMENT OF LAW BARBARA RITCHIE, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW discussed the Governor's proposed amendment: * Amend sec. 10(b), DEPARTMENT OF LAW, judgments and claims to read as follows: The sum of $716,907 [$252,339] is appropriated to the Department of Law to pay judgments and claims against the state for the fiscal year ending June 30, 1997 from the following funding sources: General fund $700,964 [$236,395] Public employees retirement fund 12,765 Teachers retirement system fund 3,178 Ms. Ritchie explained that the amendment reflects one additional item, Triplett v. State Department of Corrections. She noted that the suit claimed that the Department failed to accommodate Mr. Triplett's disabilities in violation to state anti-discrimination statues and the Americans with Disabilities Act (ADA). Mr. Triplett also filed a whistle blowing claim. She stressed that the State's exposure was significant. She observed that the Department could have reassigned Mr. Triplett. In the settlement, Mr. Triplett gives up his right to reinstatement and agrees never to apply again to the Department of Corrections for employment. In response to a question by Co-Chair Hanley, Ms. Ritchie reiterated that the State's exposure would be significant. She pointed out that ADA requires reassignment to a vacant position as a reasonable accommodation. This option was available to the Department of Corrections. 2 There being NO OBJECTION, section 10(b) was amended as above. MISCELLANEOUS CLAIMS Co-Chair Hanley noted that the Governor's amendment would reflect an additional miscellaneous claim reported by the Department of Law. Representative Martin MOVED to adopt the Governor's amendment: * Amend sec. 12, MISCELLANEOUS CLAIMS, at page 12 line 23: Law 626 [473] There being NO OBJECTION, it was so ordered. DEPARTMENT OF FISH AND GAME Co-Chair Hanley noted that the Committee denied a request for a ratification in the Department of Fish and Game. He explained that the money had lapsed. The Governor's amendment would add a new appropriation for the money that lapsed. * Add a new appropriation to section 8, DEPARTMENT OF FISH AND GAME (b) The sum of $115,000 is appropriated from the general fund to the Department of Fish and Game for ongoing litigation costs for the fiscal year ending June 30, 1997. Representative Martin MOVED to adopt the amendment to section 8. There being NO OBJECTION, it was so ordered. DEPARTMENT OF NATURAL RESOURCES Co-Chair Hanley observed that the Governor recommends a new appropriation relating to the Exxon Valdez Settlement Fund: * Add a new appropriation to section 13, DEPARTMENT OF NATURAL RESOURCES: (e) The sum of $977,000 is appropriated from the Exxon Valdez oil spill settlement trust recognized in AS 37.14.400 to the Department of Natural Rescues to purchase the following parcels in the amounts stated: Roberts parcel $698,000 Overlook Park parcel 279,000 3 ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR observed that the appropriation would normally be requested in a RPL before the Legislative Budget and Audit Committee. TRACY CRAMER, DEPARTMENT OF FISH AND GAME observed that there was a direct appropriation made by the Legislature in the 1996 Legislative Session. MOLLY MCCAMMON, DIRECTOR, EXXON VALDEZ COUNCIL explained that the parcels were nominated by members of the public for consideration under the habitat protection program. She noted that the Roberts parcel is located in Soldotna on the Kenai River, adjacent to the Kenai River Visitor Center. The Roberts parcel was recommended by the Kenai River Sport Fishing Association. The parcel would provide permanent public access to the fish walk. Ms. McCammon noted that, once a parcel is nominated, parcels are reviewed for their potential habitat protection value. Appraisals are reviewed by state and federal appraisers. The final appraised value of the Roberts parcel is $698 thousand dollars. Ms. McCammon noted that the Overlook Park parcel is adjacent to the city of Homer. This parcel is appraised at $279 thousand dollars for 97 acres. Representative Martin agreed that the request should go through the committee processing during the legislative session. He stated that he disagreed with including the request as a supplemental appropriation. He noted that the Roberts parcel is selling for $200 thousand dollars an acre. He spoke against the amendment. He maintained that there has not been adequate public debate. Ms. McCammon noted that Mr. Roberts has another buyer interested in his parcel. She emphasized that the purchase could be jeopardized by delay. Representative Davies stressed that the public has been involved in the process through the Exxon Valdez Council. He spoke in support of legislative review by the Legislative Budget and Audit Committee. Ms. McCammon noted that the Roberts purchase is supported by the city of Soldotna, the Kenai Peninsula Borough, the Kenai River Sport Fish Association, and the area commercial fishing group. She added that one petition in support of the purchase contained over 200 names. 4 Representative Davies stated that he did not mind including the purchase in the supplemental. He expressed support for future legislative oversight by the Legislative Budget and Audit Committee, even during the legislative session. Representative Martin stated that the Chairman of the Legislative Budget and Audit Committee would prefer that requests come before the Committee. He reiterated that the request needs more consideration. Representative Mulder MOVED to adopt the Governor's request to add a new appropriation to section 13, DEPARTMENT OF NATURAL RESOURCES: (e) The sum of $977,000 is appropriated from the Exxon Valdez oil spill settlement trust recognized in AS 37.14.400 to the Department of Natural Rescues to purchase the following parcels in the amounts stated: Roberts parcel $698,000 Overlook Park parcel 279,000 Representative Martin OBJECTED. Representative Davis stated that the property would be public non-taxable land if it is purchased. In response to a question by Co-Chair Therriault, Ms. McCammon explained that the Roberts parcel surrounds the Soldotna Visitor Center. The parcel contains 600 feet of river frontage. The parcel contains 3.3 acres. She emphasized that the property ties into plans for an educational access area. She stressed that the purchase would allow the boardwalk to be extended. Representative Mulder stated that the cost of the property is reasonable for its location. He spoke in support of the request. He noted that the purchase would allow a consolidated Kenai River Center. He noted support for the purchase. He maintained that the property would probably become a trailer park if it is not purchased. He noted his reluctance to place private property in the public domain, but acknowledged public support. Representative Martin noted that Mr. Roberts purchased the property in the past summer. He spoke against the purchase. Representative Davis noted that there is spring water running onto the parcel that would make development difficult. He observed that the parcel is surrounded by public property. He maintained that a private owner would have difficulty in developing the riverfront and keeping 5 people off of the property. A roll call vote was taken on the MOTION to adopt the amendment section 13 (e). IN FAVOR: Davis, Davies, Grussendorf, Foster, Kelly, Moses, Mulder, Therriault OPPOSED: Kohring, Martin, Hanley The MOTION PASSED (8-3). CAPITAL PROJECTS Representative Mulder MOVED to adopt an amendment to Sec. 20 (references to CAPITAL PROJECTS) to include the new section 13(e) above. There being NO OBJECTION, it was so ordered. DEPARTMENT OF HEALTH AND SOCIAL SERVICES Co-Chair Hanley MOVED to adopt Amendment 1 (copy on file). The amendment would add $150 thousand dollars in Mental Health Trust Authority receipts for the Alaska Psychiatric Institute Due Diligence activities. The amendment will allow the Trust to immediately begin the process of gathering data for the final implementation plan. There being NO OBJECTION, it was so ordered. DEPARTMENT OF LAW Co-Chair Hanley MOVED to adopt Amendment 2 (copy on file). He explained that the amendment would add $10 thousand dollars in general fund match to the Department of Law and delete $10 thousand dollars in program receipt authority. There being NO OBJECTION, it was so ordered. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Co-Chair Hanley MOVED to adopt Amendment 3 (copy on file). The amendment would restore the supplemental request for Emergency Alert System Equipment in the Department of Military and Veterans Affairs to the original amount of $200 thousand dollars. He noted that the request is the result of a federal mandate. There being NO OBJECTION, it was so ordered. Representative Davies MOVED to adopt Amendment 4 (copy on file). The amendment would add "designated" on line 9, page 5. He explained that the amendment would clarify that the premium payments deposited into the Disaster Relief Fund would be "designated" for the payment of flood insurance. Co-Chair Hanley noted that the number code for the fund source would be 1091. He added that the amendment would not 6 change the summary of expenditures. He stated that the amendment more closely reflects the actual use of the funds. There being NO OBJECTION, it was so ordered. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Representative Davies MOVED to adopt Amendment 5 (copy on file). Representative Mulder OBJECTED. Representative Davies noted that the amendment would add $25 thousand dollars in Alaska Housing Finance Corporation receipts to the Department of Transportation and Public Facilities for noise abatement at the intersection of Geist Road and the Parks Highway. He spoke in support of the amendment. He noted public concern regarding noise levels. He observed that the contractor removed more tress than had been expected. He observed that the noise impact can be reduced by jersey barriers. The cost of the jersey barriers will come from federal funds. (Tape Change, HFC 97-63, Side 2) Representative Davies noted that federal funds will not cover planting trees for noise abatement. The noise decimal level is just below the level needed to capture federal funding. Representative Martin spoke against the funding source. Co-Chair Hanley spoke against the request. He suggested that the request should be brought forward by the Department of Transportation and Public Facilities. Representative Davies stressed that the Department supports the request. He emphasized that the contractor will be off the job at the end of the current work season. He noted that the request would allow the RFP to be issued before the contractor finishes. In response to a question by Representative Martin, Representative Davies emphasized that the purpose of the request is for noise abatement not beautification. He noted that a wall is impractical. Co-Chair Hanley noted that Amendment 6 would change the funding source to the General Fund. He stated that he would not support either amendment. A roll call vote was taken on the MOTION to adopt Amendment 5. IN FAVOR: Davies, Moses OPPOSED: Foster, Grussendorf, Kelly, Kohring, Martin, 7 Therriault, Hanley The MOTION FAILED (2-7). Representative Davies WITHDREW Amendment 6. HB 1113 was HELD in Committee for further consideration.