SENATE BILL NO. 347                                                           
                                                                               
"An Act relating to the increase of an appropriation                           
item based on additional federal or other program                              
receipts."                                                                     
                                                                               
                                                                               
Co-chair Sharp called SB 347.                                                  
                                                                               
(Due to a malfunction of the recording and teleconference                      
equipment this meeting was not properly recorded.  The short                   
set of minutes following was taken from the Secretary's                        
handwritten log notes, which are attached to the hard copy                     
for any future reference.)                                                     
                                                                               
DAN SPENCER, Chief Budget Analyst, Office of Management and                    
Budget was invited to join the committee.  He reviewed the                     
five RPL's brought before the committee.  The first three                      
were:  one, Sitka Airport; two, Department of Fish and Game;                   
and three, ASMI.                                                               
                                                                               
Senator Donley asked what had been done regarding ASMI.  Mr.                   
Spencer said they had worked closely with ASMI to resolve                      
the issue.  He noted the director of ASMI was not "canned"                     
however later left on his own.                                                 
                                                                               
Co-chair Sharp said this had set a very bad precedence.  The                   
director flagrantly spent money he did not have and then the                   
Governor bailed him out.  He hoped that they had learned                       
their lesson.  He said the State had no reason or precedence                   
to bail out ASMI.                                                              
                                                                               
Mr. Spencer continued the last two RPL's and noted they                        
were:  four, PILT; and five, EVOS.  He said the process for                    
requesting RPL's was not broken and had not been abused.                       
                                                                               
JIM BALDWIN, Assistant Attorney General, Department of Law                     
was invited to join the committee.  He said the dispute over                   
these had never been resolved and advised the Legislature                      
should appropriate the necessary funds.  There followed a                      
short discussion between Senator Parnell and Mr. Baldwin                       
regarding the 45-day rule.  Mr. Baldwin did not feel any                       
pressure under the 45-day rule and noted there had always                      
been an honorable compromise if necessary.                                     
                                                                               
Senator Phillips MOVED SB 347 and WITHOUT OBJECTION it was                     
REPORTED OUT with individual recommendations and zero fiscal                   
note prepared by Mike Greany, Director, Division of                            
Legislative Finance.