HOUSE BILL NO. 325 An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date. HOUSE BILL NO. 326 An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date. MENTAL HEALTH Co-Chair Hanley MOVED to ADOPT amendment Mental Health #1 into the capital portion of HB 326 (copy on file). He compared the amendment to the governor's request. He observed that the appropriation of $175 thousand dollars to the Alaska Psychiatric Institute is $50 thousand dollars less than the governor's submission. He observed that the appropriation of $200 thousand dollars for Americans with Disabilities Act upgrades and a Client Data Intergration Project were funded in HB 461, the supplemental bill. Co-Chair Hanley explained that the past years funding was through mental health trust funds and capital budgets. Some of the current funding would come from the Alaska Housing Finance Corporation (AHFC) dividend of $103 million dollars to the state. Some of the appropriations are grants. There being NO OBJECTION, Mental Health #1 was adopted. DEPARTMENT OF CORRECTIONS Representative J. Davies MOVED to ADOPT Amendment DOC-1 (copy on file). He explained that the amendment would appropriate $182.1 thousand dollars to the Commissioner's Office. This would include a $97 thousand dollar RSA to the Department of Law. The amendment would allow the restoration of a special assistant in Anchorage and an assistant attorney general in Juneau. He maintained that the positions are needed to fulfill statutory obligations. Representative Mulder argued against the amendment. He noted that the department rolled forward $2.5 million dollars into the current year. He observed that the subcommittee allowed a $190 thousand dollars increment in the Commissioner's Office. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf OPPOSED: Davis, Kelly, Kohring, Martin, Mulder, Therriault, Hanley Representatives Moses and Foster were absent from the vote. The MOTION FAILED (2-7). Representative J. Davies MOVED to ADOPT Amendment DOC-2 (copy on file). He explained that the amendment would add $500 thousand dollars for Community Jails. The amendment would provide funding for 15 existing jails and add $100 thousand dollars for two new jails. Representative Mulder spoke against the amendment. He agreed that community jails are important to the state's criminal system. He pointed out that contracts are coming up for renewal. There is a great disparity of the price per day paid to jails. The subcommittee intends that the department work to standardize the price per day. He stressed that an alternative funding source is needed. In response to a question by Representative Grussendorf, Representative Mulder clarified that there is approximately $4.4 million dollars in the community jail component. The Governor requested $5 million dollars. He explained that the subcommittee approved funding for the current contract level. MARGARET PUGH, COMMISSIONER, DEPARTMENT OF CORRECTIONS testified in support of the amendment. She explained that community jails have been on a fixed three-year contract. The Governor's request included a 10 percent increase. The Governor's request would also provide assistance to other rural communities that have lock-ups but receive no state funding. She observed that prisoners are being held longer in community jails until they are transferred to state run facilities. Contracts are fixed and do not vary according to prisoner load. DWAYNE PEEPLES, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS explained that the state will attempt to negotiate a one-year contract at the end of the current three-year fixed contract. Co-Chair Hanley suggested that contract negotiations would begin at whatever funding level is provided. Representative J. Davies questioned if it would be appropriate to request a supplemental. Co-Chair Hanley stressed that the department would have to decided if it were appropriate to request a supplemental. Representative Mulder interjected that the cost per bed is high. Commissioner Pugh observed that community jails were included in the state's comprehensive correctional plan to Judge Hunt. This was the first week that the Department of Corrections did not incur fines for prisoner overcrowding. She expressed concern that reductions would affect the state's plan. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, J. Davies OPPOSED: Davis, Foster, Kohring, Martin, Mulder, Therriault, Hanley Representatives Moses and Kelly were absent from the vote. The MOTION FAILED (2-7). Representative J. Davies MOVED to ADOPT Amendment DOC-3 (copy on file). He explained that the amendment would add $307.5 thousand dollars for Inmate Health Care Services. Representative Mulder spoke against the amendment. He concluded that the department could obtain efficiencies. Mr. Peeples explained that the department would try to project future medical expenses and look at how they can be covered through contract. He observed that the department received a $1.6 million dollar supplemental. He observed that the department might need a supplemental in the future year. Representative Mulder observed that the department had a number of unanticipated inmate medical expenses in the past year. He stressed that there is not an adversarial relationship. In response to a question by Representative Grussendorf, Commissioner Pugh noted that the state's inmate population is beginning to age. Representative Martin questioned other ways that inmate medical costs could be reduced. Commissioner Pugh observed that the medical parole legislation was narrowly crafted. Discussion continued regarding inmate medical costs. A roll call vote was taken on the motion to adopt Amendment DOC-3. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kohring, Martin, Mulder, Therriault, Hanley Representative Kelly was absent from the vote. The MOTION FAILED (3-7). Representative J. Davies MOVED to ADOPT Amendment DOC-4 (copy on file). The amendment would add $162.1 thousand dollars to the Department of Corrections, Administrative and Support, Community Correction's Director's Office (copy on file). The amendment would fund Smart Start Probation Officers. Representative Mulder spoke against the amendment. He maintained that the department has a problem within community corrections. A survey taken by parole and probation offices showed that 76 percent did not feel they had received sufficient direction from the director. The subcommittee suggested that the Division be combined with Institutions. The department decided to retain a separate division. Two of the four additional probation officers were approved under the Governor's Smart Start Program. Commissioner Pugh discussed the Offender's Supervision Program. She explained that the program would allow another level of incarceration in halfway houses to free 125 of the existing community residential Center (CRC) beds. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kohring, Martin, Mulder, Therriault, Hanley Representative Kelly was absent from the vote. The MOTION FAILED (3-7). DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Representative Kohring MOVED to ADOPT Amendments DCED-1 through DCED-5 (copy on file). He explained that the amendments would transfer 5 positions in commerce and economic development to other areas outside of the department. ? Amendment DCED-1 would transfer a fish industry trade specialist to the Alaska Seafood Marketing Institute (ASMI). ? Amendment DCED-2 would transfer an industry trade specialist to the Alaska Industrial Development and Export Authority (AIDEA). ? Amendment DCED-3 would transfer a cultural trade specialist to the Department of Community and Regional Affairs. ? Amendment DCED-4 would transfer a mineral trade specialist to the Department of Natural Resources. ? Amendment DCED-5 would transfer a forestry trade specialist to the Department of Natural Resources. Representative Kohring spoke in support of the transfers. (Tape Change, HFC 98 - 112, Side 2) Representative Kohring noted that Representative Cowdery also worked on the proposal. Representative Davies emphasized that the trade is the primary focus of the positions. The secondary focus is their area of specialty. He noted that they are in the Department of Commerce and Economic Development to focus on trade. Representative Grussendorf emphasized that marketing is not the only mission. He observed that the department works as a conduit for people coming to the state to do business. Representative Davis questioned if the Department of Natural Resources has a marketing mission. Representative Grussendorf emphasized that the Department of Natural Resources supplies the raw data used in marketing. Representative Kohring maintained that there would be strength in numbers even if the functions differed. Co-Chair Hanley explained that adoption of Amendments DCED 1-5 would fund the positions. Members could then vote separately to retain the positions in the Department of Commerce and Economic Development. There being NO OBJECTION, Amendments DCED 1-5 were adopted. Representative J. Davies spoke in support of retaining the positions in the Department of Commerce and Economic Development. Representative Grussendorf questioned if ASMI would be in the same category as other departments. MARCO PIGNALBERI, STAFF, REPRESENTATIVE COWDERY spoke in support of the transfers. He stressed that the intent is that marketing positions be combined with personnel that have the operational experience for the resource. Representative Grussendorf stressed that the positions help perspective buyers find a way to use the resource. Representative Kohring maintained that productivity is not at the desired level. The intent is to generate measurable economic development. Representative Grussendorf noted that the positions would be transferred into departments that have had budget reductions. He questioned if the positions would be diffused by the reduction. Co-Chair Hanley noted that the questioned as to whether the positions would be retained in the Department of Commerce and Economic Development would be divided. Representative Grussendorf emphasized that ASMI is a quasi- state entity. Representative Davies MOVED to retain Amendment CED-1 in the Division of Trade and Development, Department of Commerce and Economic Development. A roll call vote was taken on the motion. IN FAVOR: Moses, Mulder, Davies, Davis, Grussendorf, Foster OPPOSED: Kohring, Martin, Kelly, Therriault, Hanley The MOTION PASSED (6-5). Representative J. Davies MOVED to retain Amendment DCED-2 in the Department of Commerce and Economic Development. Representative Grussendorf spoke in support of the amendment. Representative Davies pointed out that AIDEA analyzes economic feasibility. Marketing specialists are advocates. Representative Kohring stressed that measurable results have not been seen under the current configuration. A roll call vote was taken on the motion. IN FAVOR: Moses, Mulder, Davies, Davis, Grussendorf, Foster OPPOSED: Kohring, Martin, Kelly, Therriault, Hanley The MOTION PASSED (6-5). Representative Kohring MOVED to retain Amendments DCED-4 and DCED-5 in the Department of Commerce and Economic Development. There being NO OBJECTION, it was so ordered. Representative MOVED to ADOPT Amendment DCED-6A (copy on file). Amendment 6A would transfer 6 full-time positions for the Office of International Trade from the Department of Commerce and Economic Development to the Office of the Governor. It would also add $97.3 thousand general fund dollars to the Alaska Tourism Marketing Council and $transfer $50 thousand dollars from general funds to statutory designated receipts. There being NO OBJECTION, it was so ordered. Representative Foster MOVED to return the positions from the Office of the Governor to the Department of Commerce and Economic Development. Representative Kohring spoke against the amendment. (Tape Change, HFC 98 -113, Side 1) Mr. Pignalberi pointed out that the positions are partially exempt. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Foster, Moses, Therriault OPPOSED: Mulder, Davis, Kelly, Kohring, Martin, Hanley The MOTION FAILED (5-6). Representative Kohring MOVED to ADOPT Amendment DCED-7 (copy on file). The amendment would add $50 million dollars to the Department of Education for educational facilities support from the Alaska Science and Technology Endowment Fund; and add $50 for school debt service from the Alaska Science and Technology Endowment Fund. He maintained that the Alaska Science and Technology Endowments are not a proper service of state government and should be provided by private lending institutions. Representative Martin spoke against the amendment. He stressed the accomplishments of the Alaska Science and Technology Endowment Fund. Representative J. Davies noted that his wife is a recipient of a grant under the Alaska Science and Technology Endowment Fund (ASTF). He spoke against the amendment. Representative Grussendorf emphasized that ASTF is an important part of commerce and economic development. A roll call vote was taken on the motion. IN FAVOR: Davis, Kohring OPPOSED: Davies, Foster, Grussendorf, Kelly, Martin, Moses, Mulder, Hanley, Therriault The MOTION FAILED (2-9). Representative Davies WITHDREW Amendments DCED-8 and DCED-9 (copy on file). Representative Davies MOVED to ADOPT Amendment DCED-10 (copy on file). He explained that the amendment would change $120 thousand dollars in interagency receipts to general fund dollars in the Commissioner's Office. JEFF BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT explained that the subcommittee transferred funding from general fund to interagency receipts in the Commissioner's Office. Representative Kohring spoke in support of retaining the interagency receipt funding source. Representative Davies questioned if the funding is contained in another area of the budget. Mr. Bush observed that there was no additional authorization in any of the other agency budgets to pay for the additional charge. He maintained that the transfer represents an unallocated reduction that would be spread throughout the agencies. The charge would be for general administrative services. Representative Davies pointed out that interagency receipts are not generally charged for general administrative services. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Moses, Davies OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Therriault, Hanley Representative Mulder absent from the vote. The MOTION FAILED (3-7). Representative Davies MOVED to ADOPT Amendment DCED-11 (copy on file). He explained that the amendment would restore a $250 thousand dollar increment that was requested by the Governor to help fisheries disaster relief in the Bristol Bay/Kuskokwim area. Representative Kohring spoke against the amendment. Representative Grussendorf spoke in support of the amendment. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Therriault, Hanley Representatives Mulder and Martin were absent from the vote. The MOTION FAILED (3-6). Representative Davies MOVED to ADOPT Amendment DCED-12 (copy on file). Amendment DCED-12 would add $200 thousand dollars to the Division of Trade and Development. The money would be used for development in Western Alaska. Representative Kohring spoke against the amendment. He pointed out that the Department of Community and Regional Affairs is already performing some functions similar to what the amendment would fund. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Therriault, Hanley Representative Mulder was absent from the vote. The MOTION FAILED (3-7). Representative Davies MOVED to ADOPT Amendment DCED-13 (copy on file). Amendment DCED-13 would restore four positions. TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT explained that there were two cuts. A reclassified assistant commissioner and three administrative staff positions were eliminated. The Divisions of Tourism and Trade and Development share the three administrative staff positions. He emphasized that the Administrative Division shares duties. The reclassified assistant commissioner serves as a special project coordinator in Anchorage. He stressed the importance of the four positions. Representative J. Davies noted the administrative positions pay the bills and keep the books. Representative Kohring observed that the staff were eliminated as part of the plan to transfer trade specialist positions. He acknowledged the need to retain some of the staff but questioned if all were necessary. He suggested that the three administrative staff positions be reinstated, but that the special assistant position be eliminated. Representative Kohring MOVED to amend Amendment DCED-13 to appropriate $120.7 thousand dollars for 3 administrative staff positions. There being NO OBJECTION, it was so ordered. There being NO OBJECTION, Amendment DCED-13 was adopted as amended. Representative J. Davies WITHDREW Amendments DCED-14 and DCED-15 (copy on file). He MOVED to ADOPT Amendment DCED- 16 (copy on file). Amendment DCED-16 would add $118.2 thousand dollars to the Division of Tourism for a tourism director. Representative Kohring spoke against the amendment. He stressed that the subcommittee did not think that a director was warranted. He suggested that one of the staff positions act in a supervising capacity. Representative J. Davies stressed that directors are necessary to provide focus and direction. Representative Kohring referred to a study that indicated that the average director has 153 persons under their supervision. This is approximately 10 times the number of persons supervised by the current director of the Division of Tourism. Representative J. Davies emphasized that most of the directors would have section chiefs under their supervision. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Hanley Co-Chair Therriault was absent from the vote. The MOTION FAILED (3-7). Amendment DCED-17 was not offered. Representative J. Davies MOVED to ADOPT Amendment DCED-18 (copy on file). The amendment would accept an increment for an increased rate for Division of Information Services to the Alaska Energy Authority. Representative Kohring stated that he did not object to the amendment. There would be no impact on general funds. There being NO OBJECTION, it was so ordered. DEPARTMENT OF ENVIRONMENTAL CONSERVATION (Tape Change HFC 98- 113, Side 2). Representative Kohring spoke to amendment DEC #3a. [Copy on File]. He stated that the Subcommittee initially agreed it was appropriate to delete funds from the Department, as they believed that environmental groups were using the money. Consequently, he submitted the amended version of the proposed amendment. The Intent Language grew from these concerns and would stipulate how the allocation should be spent by listing priorities to disperse the pass-through grants for water related research and water related activities: ? Research projects assisting in remediation of impaired water bodies; ? Government research projects to collect scientific baseline data for use in agency decision making; ? Nongovernment scientific water data projects or activities in collaboration with and approved by a lead resource agency; or ? Water related permitting activities including community involvement and public procedures. Representative Grussendorf inquired what the dispersed second sheet, listed as the Amendment to #3a related to. [Copy on File]. MIKE KRIEBER, STAFF, REPRENTATIVE VIC KOHRING, explained that was the amendment proposed to amend DEC #3a. Representative Kelly clarified that the intent of the amendment to DEC #3a was the same, although, the purpose was different. Representative Kohring noted that the difference was the dollar amount as authorized through the "319" program. Representative Grussendorf inquired if the $200 thousand dollars in federal funding would be removed. Mr. Kriebar replied that the recommendation was to delete $200 thousand dollars to the FY99 grant funds. Representative Kohring MOVED to adopt the Amendment to Amendment DEC #3a. Representative J. Davies OBJECTED. He stated that he did not understand the logic to the reduction in federal receipts. Representative Kohring replied that some of the federal money had been granted to questionable organizations. Representative J. Davies pointed out that at Subcommittee level, there was no indication of the way in which the scientific collected data was being utilized to slow development. Representative Kelly stressed that the groups funded have not been involved only in collecting scientific data. Representative J. Davies challenged that statement. He stressed that there has been no concrete example of any mis- collection or improper use of that data. He suggested that there be an audit performed verifying that information. Co-Chair Therriault questioned the mechanism used to determine if the grants were competitively bid. Mr. Krieber noted that there is a request process and then the grants and applications are made. MICHAEL CONWAY, DIRECTOR, DIVISION OF AIR AND WATER QUALITY, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, commented that the process for awarding the grants is a competitive process that starts in the month of July with an RFP. He stated that the Division organizes workshops in Kenai, Anchorage, Fairbanks and Juneau, subsequent to the RFP participation. This year, the Division has received proposals in the amount of $1.3 million dollars. Representative Mulder suggested that this was a waste of money. He recommended that the funds be channeled into research or advertising. Mr. Conway replied that education is one of the aspects of the proposal. A work plan must be submitted. These are federal funds and federal regulations. Mr. Conway agreed that there could be means of improving the projects. Perhaps a strategic plan, incorporating the entire area would be more successful. He noted that if this appropriation were continued to be funded in the budget, it would improve how monies are disbursed. Representative Kelly stressed that the State must be careful as to how they are dividing State or federal dollars for such programs. When this money is disbursed, it is important that it be determined scientific. He pointed out that many of the groups getting the funding are not scientifically oriented. He believed that they are in the business of furthering an agenda which reduces the State's ability to develop resources. Representative G. Davis commented that the Intent Language could benefit the entire State. Mr. Krieber suggested that with respect to redemption activities, Line #3 could be more clearly worded to insert the word "restoration" prior to "activities". Representative G. Davis added language to Line #1, following "water bodies" adding "with emphasis". He MOVED that language. There being NO OBJECTION, the language was amended and adopted. Representative Grussendorf MOVED that the amendment to DEC Representative Kohring MOVED the Intent Language of the amendment. There being NO OBJECTION, the intent was adopted. Representative Kohring MOVED the reduction of the federal funds. Representative J. Davies OBJECTED. A roll call vote was taken on the motion to delete the federal funds. IN FAVOR: Kohring, Martin, Mulder, Hanley OPPOSED: Moses, J. Davies, G. Davis, Grussendorf, Foster, Kelly, Therriault The MOTION FAILED (4-7). Co-Chair Hanley asked if there was objection to DEC #3a as amended. There being NO OBJECTION, the amendment was adopted. Representative Kohring MOVED to adopt amendment DEC #4. [Copy on File]. There being NO OBJECTION, it was adopted. Representative J. Davies WITHDREW amendment DEC #5. [Copy on File]. Representative J. Davies changed DEC #6 to read $11.4 thousand dollars, oil and hazardous funds. Representative J. Davies MOVED to adopt amendment DEC #6. [Copy on File]. Representative Kohring OBJECTED to the amendment. Representative J. Davies pointed out that the funds allow the Department to deliver on site services for human resource issue resolution, computer network installation, maintenance and support, administrative training to ensure staff compliance, development of cost recovery systems for recovery of fees, federal receipts and response funds and participation in Oil and Hazardous Substance preparedness drills. Representative Kohring replied that the funding was not important, as there are fewer staff to be managed. The staff has been reduced to 52 for FY99, with fewer traveling. A roll call vote was taken on the motion. IN FAVOR: Moses, J. Davies, Grussendorf, Foster OPPOSED: Martin, Mulder, G. Davis, Kelly, Kohring, Therriault, Hanley The MOTION FAILED (4-7). Representative J. Davies MOVED to adopt amendment DEC #7 without the general funds. [Copy on File]. Representative Kohring OBJECTED. Representative J. Davies explained that communication with the general public is a critical element of the public health and emergency response services in the Department. Failure to communicate accurately and timely could result in the loss of human life or property. The publication specialist housed in the Division of Administrative Services is responsible for external communications. Representative Kohring countered that the Department already has a public relations staff and that they do not need two in that position. (Tape Change HFC 98- 114, Side 1). Mr. Krieber stated that the Drinking Water component staff does the bulk of the public water system and public notification work. Co-Chair Therriault asked clarification why contaminated foods had been included in that section. BARBARA FRANK, DIRECTOR, DIVISON OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, replied that this position is funded by three funding sources because it deals with a wide variety of issues which the Department needs to communicate with to the public. This is not a public relations position. Representative G. Davis asked if the position would deal with the "red tide" announcements. Ms. Frank acknowledged that was one of the functions of the position. A roll call vote was taken on the motion. IN FAVOR: Moses, Mulder, J. Davies, G. Davis, Grussendorf, Foster, Kelly, Therriault OPPOSED: Kohring, Martin Representative Hanley was not present for the vote. The MOTION PASSED (8-2). Representative J. Davies changed the amount in DEC #8 to $153.8 from the Alaska Drinking Water Fund. He MOVED to adopt the amended DEC #8. [Copy on File]. Representative Kohring OBJECTED. Representative J. Davies explained that there was a reduction on a one-time contractual increment request to provide educational assistance such as brochures and videos for homeowners on the proper maintenance of on-lot septic systems. He stressed that proper maintenance of on-lot septic systems is critical in preventing drinking water contamination. Approximately 50% of homes outside Anchorage rely on septic systems for proper sewage disposal. Representative Kohring pointed out that in amendment DEC purpose. Representative J. Davies disagreed that amount of funding could adequately address the need. He advised that there are several areas within the State which need this assistance. A roll call vote was taken on the motion. IN FAVOR: Mulder, J. Davies, G. Davis, Grussendorf, Foster, Kelly, Moses OPPOSED: Kohring, Martin, Hanley, Therriault The MOTION PASSED (7-4). Representative J. Davies amended the funds in DEC #9, deleting the $7.5 general fund and MOVED to adopt the amended DEC #9. [Copy on File]. Representative Kohring OBJECTED. Representative J. Davies explained that the program receipt transfer would provide the ability to increase annual inspections of high-risk facilities. The transfer will bring the inspection to an average of once every 18 months. With the additional funds, the inspection frequency would be once in 12 months. Representative Kohring stated that the budget subcommittee denied an increment proposed by the Administration, noting that there is already adequate means to operate the program and provide for the necessary inspection of the seafood and sanitation. He noted that the Department has not requested a position authorization and that there would be no guarantee that the funds would be spent on that position. Representative J. Davies interjected that these would program receipts pay for inspections. MICHELLE BROWN, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, responded that due to budget cuts last year, the Department had some positions that went from full-time to part-time. The requested money would restore those positions. She stated that DEC currently inspects 1/3 to 1/2 of what the Food and Drug Administration (FDA) recommends. Representative Kohring replied that the fees could be passed on to the consumer by increasing the prices. He noted that there are currently 30 positions in that program. Representative Grussendorf asked how many processors are inspected. Commissioner Brown replied approximately 875. A roll call vote was taken on the motion. IN FAVOR: J. Davies, Grussendorf, Moses OPPOSED: G. Davis, Foster, Kelly, Kohring, Martin, Mulder, Hanley, Therriault The MOTION FAILED (3-8). Representative J. Davies WITHDREW amendments DEC #10 and DEC Representative J. Davies requested to offer amendments DEC Committee. [Copies on File]. He stated that DEC #20 was a decrement of general funds and DEC #12 and DEC #13 are proposed ways to utilize the funds. He asked to modify DEC #12 to $75 thousand general fund dollars and DEC #13 to $125 thousand general fund dollars. Representative Kohring OBJECTED. He stated that the staff is adequately meeting the needs proposed in DEC #13. Mr. Krieber explained that DEC #3a had added $25 thousand dollars to the contractual item in solid waste to address the computer data base needs. Representative Kohring rejected the request to add $75 thousand dollars to the Drinking Water Fund. Representative Kohring spoke to DEC #20. He supported the cut to facility construction and operation in the amount of $200 thousand dollars. He MOVED to amend DEC #20 and would direct the $200 thousand dollar deletion to the Department of Public Safety, Alaska State Troopers. The amendment to the amendment would eliminate the adds recommended in DEC #12 and DEC #13 and instead would be used for the Department of Public Safety. Mr. Krieber explained that in DEC #3a, $237 thousand dollars had been replaced for public water systems. Class C systems are not subject to contaminate monitoring. He pointed out that throughout the DEC budget, there are a lot of contractual legal items and that the Department has extensive legal costs. Representative J. Davies asked that the Department respond to the allegation that there was an inordinate amount of legal fees being incurred. He pointed out that DEC has in the past responded to legal maneuvers taken by citizens to protect them. He recommended that if this is a serious issue, there should be an audit undertaken followed by a recommendation. Ms. Frank explained that the $75 thousand dollars was a split between the two programs. Some are fees for the Installer Program, although, it does not cover the cost for the entire program. Commissioner Brown added that Class C systems do test for contaminates. The attorney fees are not in the Drinking Water Program, instead, they are from the Spill Prevention and Response Program. She noted that the Department does have to defend their employees sometimes. The Department of Law also provides for the cost recovery work under the Oil and Hazardous Response Fund. Representative J. Davies spoke to DEC #13. Commissioner Brown commented that last year with the cuts proposed, Environmental Protection Agency (EPA) threatened to take back the program. With the money left from the prior year, DEC spent the year battling with EPA to retain primacy. She stressed that with this proposed cut, last year's work would be threatened. She added that Alaska has the second lowest staff per landfill ratio of the western United States. Representative J. Davies pointed out that with the addition to DEC #3a, the Committee put $25 thousand dollars back into the concern. He stated that the $125 thousand dollar request in DEC #13, plus the amount added in DEC #3a, would be the minimum to sustain a credible program. Co-Chair Therriault agreed that the solid waste program is important to his district, although, questioned the amount. Representative Kohring WITHDREW the amendment which he had proposed. Representative J. Davies WITHDREW his amendment and replaced it with DEC #20, which would add to the Department of Public Safety, Trooper detachment, funding in the amount of $110 thousand dollars plus DEC #13 at $90 thousand dollars. Representative Martin OBJECTED. He stated that he did not support raiding money from one department to give to another. A roll call vote was taken on the motion. IN FAVOR: G. Davis, Foster, Grussendorf, Kelly, Kohring, Moses, Mulder, J. Davies, Therriault, Hanley OPPOSED: Martin The MOTION PASSED (10-1). Representative J. Davies WITHDREW amendment DEC #12. Representative J. Davies MOVED to adopt amendment DEC #14. [Copy on File]. Representative Kohring OBJECTED. Representative J. Davies stated that the amendment would restore travel to directly help small businesses and communities improve compliance and reduce operating costs without enforcement consequences and/or penalties. Representative Kohring responded that the Division has adequate money to provide for the travel needs of eighteen staffed employees. Representative J. Davies stated that with fewer people, more travel money would be needed and that the net cost is less but the service would be the same with this increment. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Moses, J. Davies OPPOSED: Foster, Kelly, Kohring, Martin, Mulder, G. Davis, Hanley, Therriault The MOTION FAILED (3-8). Representative J. Davies WITHDREW amendments DEC #15, DEC Representative J. Davies changed amendment DEC #18 to $567.9 thousand dollars, and MOVED to adopt DEC #18. [Copy on File]. Representative Kohring OBJECTED. Representative J. Davies explained that the increment would restore the Response Fund for the Department's oversight of cleanup for the Ketchikan Pulp Corporation (KPC) and Alaska Pulp Corporation (APC) contaminated sites. Co-Chair Therriault asked the Department if these funds were expended, could costs be recovered. Commissioner Brown stated they would. She added that both the sites had been listed on EPA's super fund list; both communities requested that the Department assume leadership in cleanup so that they would not be placed with EPA. She added that both sites are progressing well. The fee and billing schedule was worked out with each community. Representative Martin asked how many years has the State spent on the closedown and clean up. He asked the projected time until completion. KIRK FREDERICKSSON, DIRECTOR, DIVISION OF SPILL PREVENTION AND RESPONSE, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, replied that DEC has been in Sitka for 2.5 years and expects for it to be cleaned up within the next year; the Department has been working on KPC for 1.5 years and expects clean up next year. The Department has radically condensed the time proposed by EPA. He added that EPA also does cost recovery. Mr. Krieber noted that the Department has focused on these two services for contractual and that the work on regulations is approaching completion. (Tape Change HFC 98- 114, Side 2). Ms. Frank clarified the numbers requested. She noted that there is an increment in the proposed budget which is not a Response Fund increment, but rather a 100% federal increment for a voluntary clean-up program. The total budget is approximately 50/50 for contaminated sites, federal and response fund dollars. The reduction would be coming from one of two sites, posing the least current public health threat. Ms. Frank noted that there is a $400 thousand dollar federal increment in the contaminated sites program. The federal increment in the budget is not for this kind of work; it is for a voluntary clean up program, a separate and new initiative. Co-Chair Therriault clarified that the federal money could not be used for the KPC clean up. That money is a new program for voluntary clean up. Mr. Fredericksson noted that the voluntary clean-up program is for low and medium priority sites with a known contaminate without a great threat to groundwater and in which the Department can provide guidance to the owner of the property to work with their contractors. Mr. Krieber stated that in the Subcommittee, it had been approved to use the voluntary clean-up funds to offset staff costs. Mr. Fredericksson commented that the Department's plan was to use the voluntary clean-up program as a minimal oversight program. It is not directed to be a large staff program. Co-Chair Hanley asked if the Department could use the federal funds to off set some current costs. Mr. Fredericksson stated that they would not be able to do that. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Kelly, Martin, Moses, Mulder, J. Davies, G. Davis, Foster, Therriault, Hanley OPPOSED: Kohring The MOTION PASSED (10-1). HB 325 and HB 326 were HELD in Committee for further consideration.