HOUSE FINANCE COMMITTEE May 9, 1994 9:45 p.m. TAPE HFC 94-167, Side 2, #000 - end. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 9:45 p.m. PRESENT Co-Chair Larson Representative Navarre Co-Chair MacLean Representative Martin Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf Representative Hoffman Representative Hanley not present for the meeting. ALSO PRESENT Representative Jerry Mackie; Roxanne Stewart, Staff, Senator Duncan; Tom Maher, Staff, Representative MacLean; Kate Tesar, Lobbyist, Ketchikan Gateway Borough. SUMMARY INFORMATION SB 70 "An Act establishing a loan guarantee and interest rate subsidy program for assistive technology." HCS CSSB 70 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Education, dated 2/23/94. SB 363 "An Act making appropriations for capital project matching grant funds and for capital projects; and providing for an effective date." HCS CSSB 363 (FIN) was reported out of Committee with a "do pass" recommendation. SENATE BILL NO. 70 "An Act establishing a loan guarantee and interest rate subsidy program for assistive technology." ROXANNE STEWART, STAFF, SENATOR JIM DUNCAN suggested the following language be deleted from the legislation: "if 1 there is less than $200,000 thousand dollars in the assistive technology loan guarantee fund or" on page 3, lines 2 and 3. She explained that the language might delay the effective date of the loan program for a couple of years, since the annual federal funds available for the program is only $100.0 thousand. Representative Brown MOVED to delete "if there is less than $200,000 thousand dollars in the assistive technology loan guarantee fund or" on page 3, lines 2 and 3. There being NO OBJECTION, it was so ordered. Ms. Stewart observed that the Department of Education asked that the an immediate effective date be added. Representative Navarre MOVED to ADOPT a new section 4 to provide for an immediate effective date. There being NO OBJECTION, it was so ordered. Representative Navarre MOVED to report HCS CSSB 70 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SENATE BILL NO. 363 "An Act making appropriations for capital project matching grant funds and for capital projects; and providing for an effective date." Co-Chair MacLean observed that CSSB 363 (FIN) am was amended with the concurrence of the House majority. She explained that $1.0 million dollars was added for the Ketchikan Shipyard on page 26, line 13, and $253.0 thousand dollars was added for the Alaska Small Business Assistance on page 9, line 35. She noted changes made to the front section. Qualifying language requiring a match for the Chilkoot cruise ship dock was added in section 8. Section 9 would allow funding for communities which were late in applying for their capital matching grant account. Representative Navarre provided members with AMENDMENT 1 (copy on file). He explained that the amendment would provide $3.0 million dollars in federal authorization for the Kenai, Forest Drive/Redoubt Drive drainage improvements, reconstruction and resurfacing. He clarified that the amendment would not commit state funding. Representative Brown referred to page 27, line 17. She questioned funding for the King Cove water development project. She maintained that the project is designed to enhance economic development. She noted that domestic 2 community use is a small portion of the project. She expressed concern that the least costly alternative was not considered. Representative Brown questioned funding for the North Pole water project. She observed that the project was not highly ranked by the Department of Environmental Conservation. Representative Therriault spoke in support of funding for the North Pole water project. TOM MAHER, STAFF, REPRESENTATIVE MACLEAN discussed funding for the Ketchikan ship yard, in response to a question by Representative Hoffman. He noted that $1.0 million dollars would be transferred for the project from the Vessel Replacement Fund. Representative Navarre questioned funding for the Ketchikan shipyard. KATE TESAR, LOBBYIST, KETCHIKAN GATEWAY BOROUGH testified that the $1.0 million dollars will be used to fund environmental cleanup. Representative Navarre MOVED to ADOPT AMENDMENT 1. There being NO OBJECTION, it was so ordered. Representative Brown provided members with AMENDMENT 2 (copy on file). She explained that amendment 2 would allow funding for Criminal Justice Data Base Development, $75.0 thousand dollars for the Department of Law, and $150.0 thousand dollars for the Department of Corrections. The funding source would be through the Department of Fish and Game, Assert/Protect State's Right to Manage Alaska's Resources Under ANILCA component. Co-Chair MacLean OBJECTED to the amendment. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Therriault, Brown OPPOSED: Hoffman, Navarre, Foster, Martin, Parnell, MacLean, Larson Representative Hanley was not present for the vote. The MOTION FAILED (3-7). Representative Martin provided members with AMENDMENT 3 (copy on file). He explained that the amendment would delete funding for the Chilkoot cruise ship dock in section 8. The amendment would fund $1.0 million dollars for the 3 Atwood Chair in the school of Journalism, University of Alaska. There would be a $500.0 thousand dollar match from the Robert Atwood Foundation. Co-Chair MacLean spoke in opposition to the amendment. She explained that the Haines dock was placed in the front section due to the match requirement. Representative Brown MOVED to DIVIDE the question. There being NO OBJECTION, the deletion was divided from the insertion. REPRESENTATIVE JERRY MACKIE spoke in opposition to deletion of section 8, Chilkoot cruise ship dock. He explained that the governor submitted the Chilkoot cruise ship dock as his top economic development project. A roll call vote was taken on the MOTION to delete section 8. IN FAVOR: OPPOSED: Brown, Grussendorf, Hoffman, Navarre, Foster, Martin, Therriault, MacLean, Larson Representatives Hanley and Parnell were not present for the vote. The MOTION FAILED (0-9). A roll call vote was taken on the MOTION to add $1.0 million dollars for the $1.0 million dollars for the Atwood Chair in the school of Journalism, University of Alaska. Representatives Brown and Martin spoke in support of the addition. IN FAVOR: Martin, Navarre, Therriault, Brown OPPOSED: Hoffman, Foster, Grussendorf, Larson, MacLean Representatives Hanley and Parnell were not present for the vote. The MOTION FAILED (4-5). Co-Chair MacLean provided members with intent language for Department of Transportation's FY 95 capital appropriation (copy on file). She explained that the intent language would cover all regions and state: "It is the intent of the Legislation that emergency projects eligible for funding under this allocation include projects to correct deficiencies caused by spring breakup or other weather conditions which make normal travel by the public impossible or very onerous." 4 Co-Chair MacLean MOVED to ADOPT the Intent Language. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to report HCS CSSB 363 (FIN) out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. HCS CSSB 363 (FIN) was reported out of Committee with a "do pass" recommendation. ADJOURNMENT The meeting adjourned at 10:50 p.m. 5