HOUSE BILL NO. 234 An Act relating to the financing of construction and renovation of certain public facilities; and providing for an effective date. Vice-Chair Bunde MOVED to ADOPT proposed committee substitute: work draft 22-LS0863\O, 4/25/01. There being NO OBJECTION, it was so ordered. DAVID MORK, WRANGELL testified via teleconference in support of the legislation. He stressed the importance of funding Wrangell's harbor project. The harbor is slowly deteriorating. The cost of the project has increased approximately 14 percent from the previous year. ROBERT PRUNELLA MANAGER, CITY OF WRANGELL testified via teleconference in support of inclusion of the Wrangell harbor project. TAPE HFC 01 - 99, Side B  Vice-Chair Bunde MOVED to ADOPT Amendment 1. He explained that Amendment 1 would securitize the remaining 20 percent of the tobacco settlement funds and provide a funding stream for tobacco cessation activities. Existing non-profits would utilize the funds. He acknowledged that the funding would not be dedicated but emphasized that it would provide a funding stream that the legislature can appropriate to non- profits. The amount is estimated at $4 to $5 million dollars with a decreasing annuity. Vice-Chair Bunde explained that the projects for the University of Alaska were not deleted; they were moved to create a new structure. Vice-Chair Bunde noted that there were technical difficulties with the amendment and WITHDREW Amendment 1 with the intention of revising it for the next meeting. There being NO OBJECTION, it was so ordered. Representative Croft MOVED to ADOPT Amendment 2. Co-Chair Mulder OBJECTED. Representative Croft explained that the amendment would fund the first 4 projects on the school construction list and the first 46 projects on the major maintenance list. He observed that the projects are primarily rural, but noted that there are projects from all over the state. He stressed that there is a process that should be followed. Many of the projects have been on the list for a long time. He acknowledged the difficulty of using harbor and university projects in order to fund the construction and maintenance projects contained in Amendment 2. He spoke in support of finding other ways to support ports and harbors. Co-Chair Mulder spoke against the amendment. He acknowledged the importance of building and maintaining schools but observed that there are competing interests statewide. He stressed that the issue isn't just what is politically correct but what is politically possible. There are statewide needs for capital construction dollars. He maintained that the legislation is reasonable and responsible. He felt that adoption of the amendment would amount to winning the battle but losing the war. A roll call vote was taken on the motion. IN FAVOR: Croft, Davies OPPOSED: Whitaker, Foster, Harris, Hudson, Lancaster, Mulder, Williams Representatives Mulder and Bunde were absent. Representative Hudson MOVED to ADOPT Amendment 3 on page 4, line 15: delete $6 million dollars and insert $7 million dollars for the Juneau Douglas High School. He stressed that he agreed to give up $7.1 million dollars in harbor funding in support for the city's highest priority. Co-Chair Mulder MOVED to AMEND Amendment 3: delete $1 million dollars from the University Center and add $1 million dollars for the Juneau High School repair. There being NO OBJECTION, it was so ordered. Co-Chair Mulder MOVED to ADOPT Amendment 4 as a technical amendment: page 4, lines 24 and 25, change the language to University of Alaska Anchorage University Center Acquisition and Renovation. WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY OF ALASKA provided information on the amendment. She stated that the language should state Anchorage Facility, Acquisition and Renovation. Co-Chair Mulder Amended Amendment 4 to Anchorage Facility, Acquisition and Renovation. There being NO OBJECTION, it was so ordered. There being NO OBJECTION, Amendment 4 was adopted as amended. Co-Chair Mulder MOVED to ADOPT Amendment 5 page 4, lines 24 and 25, change the language to University of Alaska Anchorage Facility, Acquisition and Renovation. There being NO OBJECTION, it was so ordered. HB 234 was heard and HELD in Committee for further consideration.