HOUSE FINANCE COMMITTEE MARCH 29, 1993 1:45 P.M. TAPE HFC 93 - 79, Side 1, #000 - end. TAPE HFC 93 - 79, Side 2, #000 - end. TAPE HFC 93 - 80, Side 1, #000 - end. TAPE HFC 93 - 80, Side 2, #000 - end. TAPE HFC 93 - 81, Side 1, #000 - end. CALL TO ORDER Co-Chair Ron Larson called the meeting of the House Finance Committee to order at 1:45 P.M. PRESENT Co-Chair Larson Representative Brown Co-Chair MacLean Representative Foster Vice-Chair Hanley Representative Grussendorf Representative Hoffman Representative Martin Representative Navarre Representative Parnell Representative Therriault ALSO PRESENT Representative Irene Nicholia; Representative Carl Moses; Representative Fran Ulmer; Representative John Davies; Representative Bill Hudson; Representative Ramona Barnes; Representative Jerry Mackie; Representative Tom Brice; Jeff Morrison, Director, Administrative Service Support Systems, Department of Military and Veterans Affairs; Mike Greany, Director, Legislative Finance Division; Cheryl Frasca, Director, Division of Budget Review, Office of Management and Budget, Office of the Governor; Mike Cushing, Research Analyst, Fish Tax Program, Department of Community and Regional Affairs; Nico Bus, Chief, Financial Services, Department of Natural Resources; Raga Elim, Special Assistant, Department of Natural Resources. SUMMARY INFORMATION HB 55 An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date. HB 55 was held in Committee for further discussion. The following departments were closed: 1 Department of Administration Department of Military and Veterans Affairs Department of Revenue Department of Corrections Department of Labor Department of Fish and Game Department of Commerce and Economic Development Department of Natural Resources Department of Public Safety Department of Community and Regional Affairs University of Alaska HOUSE BILL 55 "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 ADMINISTRATION Co-Chair Larson MOVED DOA #2 (new amendment) which would restore funds for nutrition, transportation and support services to the Older Alaskans Commission. There being NO OBJECTION, it was so ordered. Co-Chair Larson stated that DOA #3 would be WITHDRAWN with the same concept addressed in the reappropriation or supplemental budget. There being NO OBJECTION, it was withdrawn. Representative Brown MOVED Intent Language for DOA-A which would direct the telecommunications council to continue their work in coordinating the delivery of broadcast services. Co-Chair MacLean indicated her support of the intent. There being NO OBJECTION, it was so ordered. Representative Navarre MOVED DOA #13 which would provide a funding shift for equal employment opportunities. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf, Hoffman. OPPOSED: Parnell, Therriault, Foster, Hanley, Martin, Larson, MacLean. The MOTION FAILED, (4-7). DEPARTMENT OF MILITARY AND VETERANS AFFAIRS JEFF MORRISON, DIRECTOR, ADMINISTRATIVE SERVICES SUPPORT 2 SYSTEM, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, spoke to the transfer of 470 funds from the Department of Military and Veterans Affairs (DMVA) to the Department of Environmental Conservation (DEC) near-shore project. He pointed out that DMVA does not have the extra $500 thousand dollars within the current Governor's amended budget for the depot project. The original departmental request was $1.3 million dollars which included a separate $100 thousand dollars for the oil and hazardous substance depot project. Representative Therriault elaborated, the DMVA budget includes $800 thousand dollars yet the Department has broken that amount down differently. He emphasized the block of money. Co-Chair MacLean MOVED to RESCIND action taken on DEC #18. Representative Therriault OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Parnell, Foster, Grussendorf, Hanley, Hoffman, Martin, MacLean, Larson. OPPOSED: Therriault, Brown, Navarre. The MOTION PASSED, (8-3). Representative Therriault MOVED TO AMEND DEC #18 changing the amount to $400 thousand dollars split between DEC and DMVA. Mr. Morrison pointed out the shift would require DMVA to reduce the Response Preparedness and Planning component from $600 thousand dollars to $200 thousand dollars which would be harmful to the program. Representative Hoffman OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Therriault, Brown, Grussendorf, Navarre, Parnell. OPPOSED: Foster, Hanley, Hoffman, Martin, Larson, MacLean. The MOTION FAILED, (5-6). Representative Hanley MOVED TO AMEND DEC #18 changing the amount to $200 thousand dollars. He stated it would not affect the Department's response ability. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hanley, Hoffman, Navarre, Parnell, Therriault. 3 OPPOSED: Foster, Martin, Larson, MacLean. The MOTION PASSED, (7-4). DEPARTMENT OF REVENUE Representative Navarre WITHDREW REV #8. There being NO OBJECTION, it was withdrawn. Representative Martin MOVED Intent Language REV-B which would delete all unfunded PCN's within the Department. Representative Brown asked if the elimination of the position could affect a vacancy calculation. MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION, explained the vacancy factor calculation used by each individual department. Representative Martin pointed out the intent would affect only unfunded positions within the Commissioner's Office. CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, advised that unfunded PCN's have currently been deleted. There being NO OBJECTION to the Intent Language, it was adopted. (Tape Change, HFC 93-79, Side 2). DEPARTMENT OF CORRECTIONS Representative Navarre MOVED TO RESCIND action taken on CORR Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION to RESCIND. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson. The MOTION FAILED, (4-7). Representative Navarre MOVED TO RESCIND action taken on CORR A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Hanley, Martin, Parnell, Therriault, Foster, Larson, MacLean. 4 The MOTION FAILED, (4-7). DEPARTMENT OF LAW Representative Hanley MOVED Governor's amendment Section DEPARTMENT OF FISH AND GAME Co-Chair MacLean MOVED TO RESCIND action of failure to adopt F&G #1. There being NO OBJECTION, it was rescinded. Co-Chair MacLean MOVED F&G #1 which would reinstate three regional coordinators in Kotzebue, Dillingham and Southeast. Representative Grussendorf OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hanley, Martin, Parnell, Therriault, Foster, MacLean, Larson. OPPOSED: Hoffman, Navarre, Brown, Grussendorf. The MOTION PASSED, (7-4). Representative Hoffman MOVED F&G #12 which would increase the Kotzebue Board of Fisheries and Game's regional council. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Brown, Foster, Grussendorf. OPPOSED: Martin, Parnell, Therriault, Hanley, Larson, MacLean. The MOTION FAILED, (5-6). Co-Chair MacLean MOVED TO RESCIND action taken on F&G #2. There being NO OBJECTION, it was rescinded. Co-Chair MacLean MOVED amendment F&G #2. Representative Navarre OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Martin, Parnell, Therriault, Foster, Grussendorf, Hanley, Hoffman, MacLean, Larson. OPPOSED: Navarre, Brown. 5 The MOTION PASSED, (9-2). Representative Navarre MOVED F&G #9. REPRESENTATIVE JERRY MACKIE explained the amendment would reinstate $388 thousand dollars to the Klawock Hatchery. Co-Chair MacLean recommended raw fish tax as a funding source. Representative Mackie replied that if the House Finance Committee recommended using that tax, the community would not object. He reiterated that the money for the Klawock Hatchery is a priority for the community. (Tape Change, HFC 93-80, Side 1). Representative Hanley noted all hatcheries should be treated equally and added he would not support the amendment. Representative Hanley OBJECTED to F&G #9. Representative Grussendorf pointed out that the Raw Fish Tax would be an inappropriate funding source. A roll call was taken on the MOTION. IN FAVOR: Navarre, Brown, Foster, Grussendorf, Hoffman. OPPOSED: Parnell, Therriault, Hanley, Martin, Larson, MacLean. The MOTION FAILED, (5-6). DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Co-Chair MacLean MOVED Governor's amendment #672. Representative Brown pointed out Section (3) of #672 was held open in order to transfer that section to DEC. Co-Chair MacLean MOVED adoption of Governor's amendment A roll call was taken on the MOTION. IN FAVOR: Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Hoffman, Navarre, MacLean, Larson, Martin. OPPOSED: 0 The MOTION PASSED, (11-0). Co-Chair Larson MOVED TO RESCIND the previous action taken on CRA #2. 6 MICHAEL CUSHING, RESEARCH ANALYST, FISH TAX PROGRAM, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, explained the impact of the deletion of program receipts. He provided the Committee with handouts. [Attachment #2, #3, #4]. Mr. Cushing added it was estimated that $3 million dollars would be accumulated of which DCRA would receive $1.5 million dollars. The cost of collection and disbursement will come from the Department of Revenue. Representative Navarre emphasized that the shared fishing tax program would not be a good distribution for funds. He OBJECTED to rescinding action on CRA #2. A roll call was taken on the MOTION. IN FAVOR: Therriault, Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. OPPOSED: Brown, Navarre. Representative Martin was not present for the vote. The MOTION PASSED, (8-2). Representative Navarre MOVED CRA #2. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Navarre, Therriault. OPPOSED: Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. Representative Martin was not present for the vote. The MOTION FAILED, (3-7). Representative Brown MOVED CRA #7 which would restore funding for the Fairbanks Native Association employment program. Representative Hanley OBJECTED. REPRESENTATIVE JOHN DAVIES explained the need for funding the restoration. He asked that funding originate from the general fund rather than the STEP Program. Representative Therriault advised that the STEP Program funding would be more appropriate. (Tape Change, HFC 93-80, Side 2). A roll call was taken on the MOTION. 7 IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Foster, Martin, Parnell, Therriault, MacLean, Larson. Representative Hanley was not present for the vote. The MOTION FAILED, (4-6). Representative Brown MOVED TO RESCIND action on failure to adopt CRA #6. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown, Larson. OPPOSED: Martin, Parnell, Therriault, Foster, MacLean. Representative Hanley was not present for the vote. The MOTION FAILED, (5-5). DEPARTMENT OF NATURAL RESOURCES Representative Therriault MOVED TO RESCIND action on failure to adopt the Governor's amendment #452. Co-Chair MacLean OBJECTED. Representative Therriault stated the money could originate from federal funds. Co-Chair MacLean WITHDREW THE OBJECTION. There being NO FURTHER OBJECTION, the amendment was before the Committee. Representative Therriault MOVED Governor's amendment #452. There being NO OBJECTION, it was adopted. Co-Chair Larson MOVED DNR #1 which would increase nursery operations. The remaining sections of the amendment were withdrawn. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hanley, Hoffman, Parnell, Brown, Foster, Grussendorf, MacLean, Larson. OPPOSED: Martin, Therriault. Representative Navarre was not present for the vote. The MOTION PASSED, (8-2). Representative Brown MOVED DNR #4 which would restore the 8 Governor's FY 94 request for the Oil and Gas Conservation Commission. Co-Chair MacLean OBJECTED. Representative Therriault said that the Department had offered that position in the 1% scenario proposal. NICO BUS, CHIEF, FINANCIAL SERVICE, DEPARTMENT OF NATURAL RESOURCES, stated the loss of the position would jeopardize the loss of federal revenue. RAGE ELIM, SPECIAL ASSISTANT TO THE COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES, added the requested amount would make the position whole not needing additional positions. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Brown, Grussendorf, Larson. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, MacLean. The MOTION FAILED, (5-6). Representative Therriault MOVED DNR #8 which would pro-rate the $75 thousand dollars for State Fairs. Co-Chair MacLean pointed out that the pro-rating of state fair moneys was done disproportionately. She encouraged that the funds be allocated based on an equal percentage reduction (36.55%) applied to each grant from their current grant amount. There being NO OBJECTION, DNR #8 was adopted. Co-Chair MacLean MOVED TO AMEND DNR #8 as recommended in the Committee allocation amount. Representative Therriault stressed he did not want to place general fund dollars back into the budget. Co-Chair MacLean WITHDREW the motion and asked to keep DNR #8 open for further consideration. There being NO OBJECTION, it was held open. Representative Brown MOVED DNR #11 which would restore funding for oil and gas lease programs. Representative Therriault OBJECTED. Mr. Bus noted the reduction would eliminate one lease sale in FY 94. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, MacLean. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, Larson. Representative Navarre was not present for the vote. 9 The MOTION FAILED, (4-6). Representative Brown MOVED DNR #5 which would restore the component to the Governor's FY 94 request, at the same time would maintain personal service funding for twenty-two positions as authorized in FY 93. Mr. Elim pointed out that information resulting from the position would insure proper decision making in land management. Representative Therriault OBJECTED to DNR #5. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Brown, Grussendorf, Larson. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, MacLean. The MOTION FAILED, (5-6). Representative Navarre MOVED TO RESCIND action taken on DNR level. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre, Larson. OPPOSED: Parnell, Therriault, Foster, Hanley, Hoffman, Martin. Representative MacLean was not present for the vote. The MOTION FAILED, (4-6). Representative Navarre MOVED DNR #13 which provide funds to start a program for developing and marketing virus-free seed potatoes. (Tape Change, HFC 93-81, Side 1). Representative Hanley recommended using program receipts to pay for the program. Representative Davies pointed out currently there is not a program existing. Representative Therriault emphasized that the $50 thousand dollar request would not be sufficient to start a program and recommended placing the program into the Division of Agriculture. Representative Brown requested $240 thousand dollars of ARLF funds be added in order to start the program. Co-Chair Larson replied that ARLF would not be an appropriate source. Representative Davies interjected that $50 thousand dollars 10 could establish the beginning of the program. Representative Therriault OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre. OPPOSED: Therriault, Hanley, Hoffman, Martin, Parnell, Larson, MacLean. Representative Foster was not present for the vote. The MOTION FAILED, (3-7). DEPARTMENT OF PUBLIC SAFETY Representative Therriault MOVED Governor's amendment #799. There being NO OBJECTION, it was adopted. Representative Parnell MOVED DPS #2 which would increase wildlife protection in Bristol Bay, Alaska Peninsula/Eastern Aleutians and Western Aleutians/Bering Sea. REPRESENTATIVE CARL MOSES spoke in support of the amendment. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. OPPOSED: Brown, Martin, Navarre. Representative Therriault was not present for the vote. The MOTION PASSED, (7-3). Representative Hanley MOVED Intent Language DPS-A which would keep the canine scent detection unit in the Fairbanks area narcotics task force. There being NO OBJECTION, it was adopted. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Representative Therriault MOVED TO RESCIND CED #5. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hanley, Navarre, Parnell, Therriault, Brown, Larson. 11 OPPOSED: Foster, Hoffman, MacLean. Representative Martin was not present for the vote. The MOTION PASSED, (7-3). Representative Therriault MOVED TO AMEND CED #5 by deleting the $80 thousand dollar general fund contractual from the Commissioner's Office. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hanley, Navarre, Parnell, Therriault, Brown, Larson. OPPOSED: Foster, Hoffman, MacLean. Representative Martin was not present for the vote. The MOTION PASSED, (7-3). Representative Therriault MOVED CED #9 which would provide funding for PSP/Domoic Acid sampling program. Representative Hanley declared a conflict of interest as he serves on a marketing board. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Larson. OPPOSED: Hoffman, Martin, MacLean. The MOTION PASSED, (8-3). UNIVERSITY OF ALASKA Representative Navarre MOVED UOA #1 which would add $115 thousand dollars to the University of Alaska for the rural college/Tanana Valley Campus. Representative Davies provided the Committee with information. [Attachment #5]. Representative Navarre added that $125 thousand dollars could originate from a decrement to the Alaska Geography Textbook. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Therriault, Brown, Foster, Grussendorf, Hoffman. OPPOSED: Martin, Parnell, Hanley, MacLean, Larson. 12 The MOTION PASSED, (6-5). ADJOURNMENT The meeting adjourned at 6:00 P.M. HOUSE FINANCE COMMITTEE MARCH 29, 1993 1:45 P.M. TAPE HFC 93 - 79, Side 1, #000 - end. TAPE HFC 93 - 79, Side 2, #000 - end. TAPE HFC 93 - 80, Side 1, #000 - end. TAPE HFC 93 - 80, Side 2, #000 - end. TAPE HFC 93 - 81, Side 1, #000 - end. CALL TO ORDER Co-Chair Ron Larson called the meeting of the House Finance Committee to order at 1:45 P.M. PRESENT Co-Chair Larson Representative Brown Co-Chair MacLean Representative Foster Vice-Chair Hanley Representative Grussendorf Representative Hoffman Representative Martin Representative Navarre Representative Parnell Representative Therriault ALSO PRESENT Representative Irene Nicholia; Representative Carl Moses; Representative Fran Ulmer; Representative John Davies; Representative Bill Hudson; Representative Ramona Barnes; Representative Jerry Mackie; Representative Tom Brice; Jeff Morrison, Director, Administrative Service Support Systems, Department of Military and Veterans Affairs; Mike Greany, Director, Legislative Finance Division; Cheryl Frasca, Director, Division of Budget Review, Office of Management and Budget, Office of the Governor; Mike Cushing, Research Analyst, Fish Tax Program, Department of Community and Regional Affairs; Nico Bus, Chief, Financial Services, Department of Natural Resources; Raga Elim, Special Assistant, Department of Natural Resources. SUMMARY INFORMATION HB 55 An Act making appropriations for the operating and loan program expenses of state government and to 13 capitalize funds; and providing for an effective date. HB 55 was held in Committee for further discussion. The following departments were closed: Department of Administration Department of Military and Veterans Affairs Department of Revenue Department of Corrections Department of Labor Department of Fish and Game Department of Commerce and Economic Development Department of Natural Resources Department of Public Safety Department of Community and Regional Affairs University of Alaska HOUSE BILL 55 "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 ADMINISTRATION Co-Chair Larson MOVED DOA #2 (new amendment) which would restore funds for nutrition, transportation and support services to the Older Alaskans Commission. There being NO OBJECTION, it was so ordered. Co-Chair Larson stated that DOA #3 would be WITHDRAWN with the same concept addressed in the reappropriation or supplemental budget. There being NO OBJECTION, it was withdrawn. Representative Brown MOVED Intent Language for DOA-A which would direct the telecommunications council to continue their work in coordinating the delivery of broadcast services. Co-Chair MacLean indicated her support of the intent. There being NO OBJECTION, it was so ordered. Representative Navarre MOVED DOA #13 which would provide a funding shift for equal employment opportunities. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf, Hoffman. OPPOSED: Parnell, Therriault, Foster, Hanley, Martin, Larson, MacLean. 14 The MOTION FAILED, (4-7). DEPARTMENT OF MILITARY AND VETERANS AFFAIRS JEFF MORRISON, DIRECTOR, ADMINISTRATIVE SERVICES SUPPORT SYSTEM, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, spoke to the transfer of 470 funds from the Department of Military and Veterans Affairs (DMVA) to the Department of Environmental Conservation (DEC) near-shore project. He pointed out that DMVA does not have the extra $500 thousand dollars within the current Governor's amended budget for the depot project. The original departmental request was $1.3 million dollars which included a separate $100 thousand dollars for the oil and hazardous substance depot project. Representative Therriault elaborated, the DMVA budget includes $800 thousand dollars yet the Department has broken that amount down differently. He emphasized the block of money. Co-Chair MacLean MOVED to RESCIND action taken on DEC #18. Representative Therriault OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Parnell, Foster, Grussendorf, Hanley, Hoffman, Martin, MacLean, Larson. OPPOSED: Therriault, Brown, Navarre. The MOTION PASSED, (8-3). Representative Therriault MOVED TO AMEND DEC #18 changing the amount to $400 thousand dollars split between DEC and DMVA. Mr. Morrison pointed out the shift would require DMVA to reduce the Response Preparedness and Planning component from $600 thousand dollars to $200 thousand dollars which would be harmful to the program. Representative Hoffman OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Therriault, Brown, Grussendorf, Navarre, Parnell. OPPOSED: Foster, Hanley, Hoffman, Martin, Larson, MacLean. The MOTION FAILED, (5-6). Representative Hanley MOVED TO AMEND DEC #18 changing the amount to $200 thousand dollars. He stated it would not affect the Department's response ability. Co-Chair MacLean 15 OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hanley, Hoffman, Navarre, Parnell, Therriault. OPPOSED: Foster, Martin, Larson, MacLean. The MOTION PASSED, (7-4). DEPARTMENT OF REVENUE Representative Navarre WITHDREW REV #8. There being NO OBJECTION, it was withdrawn. Representative Martin MOVED Intent Language REV-B which would delete all unfunded PCN's within the Department. Representative Brown asked if the elimination of the position could affect a vacancy calculation. MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION, explained the vacancy factor calculation used by each individual department. Representative Martin pointed out the intent would affect only unfunded positions within the Commissioner's Office. CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, advised that unfunded PCN's have currently been deleted. There being NO OBJECTION to the Intent Language, it was adopted. (Tape Change, HFC 93-79, Side 2). DEPARTMENT OF CORRECTIONS Representative Navarre MOVED TO RESCIND action taken on CORR Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION to RESCIND. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson. The MOTION FAILED, (4-7). Representative Navarre MOVED TO RESCIND action taken on CORR 16 A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Hanley, Martin, Parnell, Therriault, Foster, Larson, MacLean. The MOTION FAILED, (4-7). DEPARTMENT OF LAW Representative Hanley MOVED Governor's amendment Section DEPARTMENT OF FISH AND GAME Co-Chair MacLean MOVED TO RESCIND action of failure to adopt F&G #1. There being NO OBJECTION, it was rescinded. Co-Chair MacLean MOVED F&G #1 which would reinstate three regional coordinators in Kotzebue, Dillingham and Southeast. Representative Grussendorf OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hanley, Martin, Parnell, Therriault, Foster, MacLean, Larson. OPPOSED: Hoffman, Navarre, Brown, Grussendorf. The MOTION PASSED, (7-4). Representative Hoffman MOVED F&G #12 which would increase the Kotzebue Board of Fisheries and Game's regional council. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Brown, Foster, Grussendorf. OPPOSED: Martin, Parnell, Therriault, Hanley, Larson, MacLean. The MOTION FAILED, (5-6). Co-Chair MacLean MOVED TO RESCIND action taken on F&G #2. There being NO OBJECTION, it was rescinded. Co-Chair MacLean MOVED amendment F&G #2. Representative Navarre OBJECTED. A roll call was taken on the MOTION. 17 IN FAVOR: Martin, Parnell, Therriault, Foster, Grussendorf, Hanley, Hoffman, MacLean, Larson. OPPOSED: Navarre, Brown. The MOTION PASSED, (9-2). Representative Navarre MOVED F&G #9. REPRESENTATIVE JERRY MACKIE explained the amendment would reinstate $388 thousand dollars to the Klawock Hatchery. Co-Chair MacLean recommended raw fish tax as a funding source. Representative Mackie replied that if the House Finance Committee recommended using that tax, the community would not object. He reiterated that the money for the Klawock Hatchery is a priority for the community. (Tape Change, HFC 93-80, Side 1). Representative Hanley noted all hatcheries should be treated equally and added he would not support the amendment. Representative Hanley OBJECTED to F&G #9. Representative Grussendorf pointed out that the Raw Fish Tax would be an inappropriate funding source. A roll call was taken on the MOTION. IN FAVOR: Navarre, Brown, Foster, Grussendorf, Hoffman. OPPOSED: Parnell, Therriault, Hanley, Martin, Larson, MacLean. The MOTION FAILED, (5-6). DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Co-Chair MacLean MOVED Governor's amendment #672. Representative Brown pointed out Section (3) of #672 was held open in order to transfer that section to DEC. Co-Chair MacLean MOVED adoption of Governor's amendment A roll call was taken on the MOTION. IN FAVOR: Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Hoffman, Navarre, MacLean, Larson, Martin. 18 OPPOSED: 0 The MOTION PASSED, (11-0). Co-Chair Larson MOVED TO RESCIND the previous action taken on CRA #2. MICHAEL CUSHING, RESEARCH ANALYST, FISH TAX PROGRAM, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, explained the impact of the deletion of program receipts. He provided the Committee with handouts. [Attachment #2, #3, #4]. Mr. Cushing added it was estimated that $3 million dollars would be accumulated of which DCRA would receive $1.5 million dollars. The cost of collection and disbursement will come from the Department of Revenue. Representative Navarre emphasized that the shared fishing tax program would not be a good distribution for funds. He OBJECTED to rescinding action on CRA #2. A roll call was taken on the MOTION. IN FAVOR: Therriault, Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. OPPOSED: Brown, Navarre. Representative Martin was not present for the vote. The MOTION PASSED, (8-2). Representative Navarre MOVED CRA #2. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Navarre, Therriault. OPPOSED: Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. Representative Martin was not present for the vote. The MOTION FAILED, (3-7). Representative Brown MOVED CRA #7 which would restore funding for the Fairbanks Native Association employment program. Representative Hanley OBJECTED. REPRESENTATIVE JOHN DAVIES explained the need for funding the restoration. He asked that funding originate from the general fund rather than the STEP Program. Representative 19 Therriault advised that the STEP Program funding would be more appropriate. (Tape Change, HFC 93-80, Side 2). A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Foster, Martin, Parnell, Therriault, MacLean, Larson. Representative Hanley was not present for the vote. The MOTION FAILED, (4-6). Representative Brown MOVED TO RESCIND action on failure to adopt CRA #6. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown, Larson. OPPOSED: Martin, Parnell, Therriault, Foster, MacLean. Representative Hanley was not present for the vote. The MOTION FAILED, (5-5). DEPARTMENT OF NATURAL RESOURCES Representative Therriault MOVED TO RESCIND action on failure to adopt the Governor's amendment #452. Co-Chair MacLean OBJECTED. Representative Therriault stated the money could originate from federal funds. Co-Chair MacLean WITHDREW THE OBJECTION. There being NO FURTHER OBJECTION, the amendment was before the Committee. Representative Therriault MOVED Governor's amendment #452. There being NO OBJECTION, it was adopted. Co-Chair Larson MOVED DNR #1 which would increase nursery operations. The remaining sections of the amendment were withdrawn. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hanley, Hoffman, Parnell, Brown, Foster, Grussendorf, MacLean, Larson. OPPOSED: Martin, Therriault. 20 Representative Navarre was not present for the vote. The MOTION PASSED, (8-2). Representative Brown MOVED DNR #4 which would restore the Governor's FY 94 request for the Oil and Gas Conservation Commission. Co-Chair MacLean OBJECTED. Representative Therriault said that the Department had offered that position in the 1% scenario proposal. NICO BUS, CHIEF, FINANCIAL SERVICE, DEPARTMENT OF NATURAL RESOURCES, stated the loss of the position would jeopardize the loss of federal revenue. RAGE ELIM, SPECIAL ASSISTANT TO THE COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES, added the requested amount would make the position whole not needing additional positions. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Brown, Grussendorf, Larson. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, MacLean. The MOTION FAILED, (5-6). Representative Therriault MOVED DNR #8 which would pro-rate the $75 thousand dollars for State Fairs. Co-Chair MacLean pointed out that the pro-rating of state fair moneys was done disproportionately. She encouraged that the funds be allocated based on an equal percentage reduction (36.55%) applied to each grant from their current grant amount. There being NO OBJECTION, DNR #8 was adopted. Co-Chair MacLean MOVED TO AMEND DNR #8 as recommended in the Committee allocation amount. Representative Therriault stressed he did not want to place general fund dollars back into the budget. Co-Chair MacLean WITHDREW the motion and asked to keep DNR #8 open for further consideration. There being NO OBJECTION, it was held open. Representative Brown MOVED DNR #11 which would restore funding for oil and gas lease programs. Representative Therriault OBJECTED. Mr. Bus noted the reduction would eliminate one lease sale in FY 94. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, MacLean. 21 OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, Larson. Representative Navarre was not present for the vote. The MOTION FAILED, (4-6). Representative Brown MOVED DNR #5 which would restore the component to the Governor's FY 94 request, at the same time would maintain personal service funding for twenty-two positions as authorized in FY 93. Mr. Elim pointed out that information resulting from the position would insure proper decision making in land management. Representative Therriault OBJECTED to DNR #5. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Brown, Grussendorf, Larson. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, MacLean. The MOTION FAILED, (5-6). Representative Navarre MOVED TO RESCIND action taken on DNR level. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre, Larson. OPPOSED: Parnell, Therriault, Foster, Hanley, Hoffman, Martin. Representative MacLean was not present for the vote. The MOTION FAILED, (4-6). Representative Navarre MOVED DNR #13 which provide funds to start a program for developing and marketing virus-free seed potatoes. (Tape Change, HFC 93-81, Side 1). Representative Hanley recommended using program receipts to pay for the program. Representative Davies pointed out currently there is not a program existing. Representative Therriault emphasized that the $50 thousand dollar request 22 would not be sufficient to start a program and recommended placing the program into the Division of Agriculture. Representative Brown requested $240 thousand dollars of ARLF funds be added in order to start the program. Co-Chair Larson replied that ARLF would not be an appropriate source. Representative Davies interjected that $50 thousand dollars could establish the beginning of the program. Representative Therriault OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre. OPPOSED: Therriault, Hanley, Hoffman, Martin, Parnell, Larson, MacLean. Representative Foster was not present for the vote. The MOTION FAILED, (3-7). DEPARTMENT OF PUBLIC SAFETY Representative Therriault MOVED Governor's amendment #799. There being NO OBJECTION, it was adopted. Representative Parnell MOVED DPS #2 which would increase wildlife protection in Bristol Bay, Alaska Peninsula/Eastern Aleutians and Western Aleutians/Bering Sea. REPRESENTATIVE CARL MOSES spoke in support of the amendment. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. OPPOSED: Brown, Martin, Navarre. Representative Therriault was not present for the vote. The MOTION PASSED, (7-3). Representative Hanley MOVED Intent Language DPS-A which would keep the canine scent detection unit in the Fairbanks area narcotics task force. There being NO OBJECTION, it was adopted. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Representative Therriault MOVED TO RESCIND CED #5. Co-Chair MacLean OBJECTED. 23 A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hanley, Navarre, Parnell, Therriault, Brown, Larson. OPPOSED: Foster, Hoffman, MacLean. Representative Martin was not present for the vote. The MOTION PASSED, (7-3). Representative Therriault MOVED TO AMEND CED #5 by deleting the $80 thousand dollar general fund contractual from the Commissioner's Office. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hanley, Navarre, Parnell, Therriault, Brown, Larson. OPPOSED: Foster, Hoffman, MacLean. Representative Martin was not present for the vote. The MOTION PASSED, (7-3). Representative Therriault MOVED CED #9 which would provide funding for PSP/Domoic Acid sampling program. Representative Hanley declared a conflict of interest as he serves on a marketing board. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Larson. OPPOSED: Hoffman, Martin, MacLean. The MOTION PASSED, (8-3). UNIVERSITY OF ALASKA Representative Navarre MOVED UOA #1 which would add $115 thousand dollars to the University of Alaska for the rural college/Tanana Valley Campus. Representative Davies provided the Committee with information. [Attachment #5]. Representative Navarre added that $125 thousand dollars could originate from a decrement to the Alaska Geography Textbook. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. 24 IN FAVOR: Navarre, Therriault, Brown, Foster, Grussendorf, Hoffman. OPPOSED: Martin, Parnell, Hanley, MacLean, Larson. The MOTION PASSED, (6-5). ADJOURNMENT The meeting adjourned at 6:00 P.M. 25