Legislature(1995 - 1996)
03/27/1996 01:50 PM FIN
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HOUSE BILL 412 "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 413 "An Act making appropriations for the operating expenses of the state's integrated comprehensive mental health program; and providing for an effective date." DEPARTMENT OF EDUCATION (DOE) Representative Navarre MOVED to adopt amendment DOE #6 which would eliminate the Governor's proposed FY97 reduction of $100 thousand dollars and restore community schools funding for the FY96 authorized level of $600 thousand dollars. Co- Chair Hanley OBJECTED. A roll call was taken on the MOTION to adopt DOE #6. IN FAVOR: Grussendorf, Navarre, Brown. OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Foster, Hanley. 4 The MOTION FAILED (3-8). Representative Brown MOVED to adopt amendment DOE #8 which would fund pupil transportation at the foundation projected level for FY97. The amendment would add a little more than $3 million dollars to the budget. Co-Chair Hanley OBJECTED. LARRY WIGET, DIRECTOR OF GOVERNMENT RELATIONS, ANCHORAGE SCHOOL DISTRICT, ANCHORAGE, stated that Representative Brown had accurately reflected the concerns of the Anchorage school district regarding pupil transportation. The Governor's proposed budget would force the Anchorage school district to cut from the budget an additional $1.57 million dollars. The funding that is currently proposed in the bill includes an 8% cut without taking into consideration the opening of new schools, new routes and a cost-of-living raise. A roll call was taken on the MOTION to adopt amendment DOE IN FAVOR: Brown, Grussendorf. OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley, Foster. Representative Navarre was not present for the vote. The MOTION FAILED (2-8). Representative Mulder MOVED to report CS HB 230 (FIN) out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. CS HB 230 (FIN) was reported out of Committee with a "do pass" recommendation. DEPARTMENT OF PUBLIC SAFETY (DPS) Co-Chair Hanley explained that a program exists which allows the State to use felon dividends for three different programs, the Department of Corrections, Violent Crimes Compensation Commission and the Council on Domestic Violence. In years past, most of the money in those budgets had been from Permanent Fund Dividends (PFD). The Governor's FY97 proposed budget had $3.196 million dollars of PFD money going to those three divisions. Last year, it was $2.8 million dollars. Co-Chair Hanley noted that information was now available indicating that amount available this year would be closer to $2.4 million dollars. He asked for further information regarding that determination. 5 NANCI JONES, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION, DEPARTMENT OF REVENUE, advised that the model currently used has been in existence since 1988. The Department of Corrections provides a tape each year of those felons listed as incarcerated for that particular qualifying year. For FY97, the number would be determined by the felons that were incarcerated in the 1994 calendar year, in the qualifying year for the 1995 PFD. The tape match is compared with those persons who would be eligible for a dividend and would not have any prior denials on the record. The edit determines if they had applied for a dividend in any year from 1988 - 1994. Each year, an additional year is added. If they are eligible, then their dividend is eligible to be paid for the appropriation. Elimination of new people occurs if they have never applied for a dividend. A number is then determined and multiplied by the total of the dividend. The amount of the 1995 dividends was $990 dollars, which totalled $2.438 million dollars available for appropriation. Ms. Jones continued, according to statute, if an amount is appropriated over and above that number, then the detail of that appropriation needs to be listed on the dividend stub. Currently, that amount would roll forward with the amount remaining in the fund and appears as a prior period adjustment. Representative Brown stated that if the over-appropriation was not corrected, would that money then be taken out of the current year dividend pool. Ms. Jones noted that would be correct for the dividends to be paid for 1997. Representative Brown asked for further information regarding the drop-in felons for whom the dividends would be coming into the pool for calendar year 1993 and 1994. Ms. Jones established that the discrepancy resulted in FY96 when there were many names provided from the Department of Corrections as felons who were in fact not yet incarcerated felons. That number then needs to be adjusted for the amount of dividends to be paid. The number that year totalled 400 felons who appealed and who the State had to pay a dividend to. In order for the State not to be required to pay twice, an adjusted number was provided. Representative Mulder questioned how that could happen. Ms. Jones pointed out that there could be a lag in the reporting time. The prisoner could be arrested, spending over night in jail, but then not convicted of that crime. Depending on when the tapes are made available, there could be no way of knowing until the dividend was not paid. In the last fiscal year, there were 168 dividends overturned. The 1996 number is correct. The run is normally done in March of each year. 6 This oversight could result in a $1.10 dollar reduction to the PFD's this year. NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, explained that the calculations were provided to the Governor's Office recently, after the amendments had been completed. A review has not been provided to determine how to bring the discrepancy in line with the amount which is actually available. Representative Mulder questioned if the Department of Corrections had given incorrect information regarding the status of eligibility. Ms. Jones replied that the information available at the time, needed to be adjusted in a manner so that the PFD can make the necessary calculation changes. At the time that the tape was provided, the Department submitted their best guess. She noted for the record that the Department supplied the only information that was available to them at that time. Numbers need to be continually adjusted. (Tape Change, HFC 96-97, Side 2). Co-Chair Hanley suggested that the Committee work out a solution to funding the different compensation for victims and their family programs. He requested that a spread sheet addressing these concerns by provided. Representative Brown stressed that the Council on Domestic Violence should not be shorted as a result of the PFD mis-calculation. Co-Chair Hanley stated that DPS #5 and DPS #6 would be HELD until the spread sheet material was available. Representative Brown MOVED to adopt DPS #4 which would add program receipt authority of $50 thousand dollars for the Department of Public Safety for the Division of Motor Vehicles. Co-Chair Foster OBJECTED. Representative Brown noted that this was a new program approved by LB&A this year which allows emissions testing centers to do registration renewals. KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF PUBLIC SAFETY, confirmed that the request would be funded through program receipts although would be considered general fund money. Currently, the sign-up rate does not indicate an excess of $50 thousand dollars. The agency feels that they can "live" with the $50 thousand dollar limit. Representative Brown MOVED TO WITHDRAW the MOTION to adopt DPS #4. There being NO OBJECTION, it was withdrawn. 7 DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) Representative Therriault MOVED to adopt DEC #1. Representative Brown requested a further explanation. Representative Therriault explained that due to a delay of the approval of the switch within the Clean Air Program by the Environmental Protection Agency (EPA), there would be a brief period of time that fees will be assessed without funding. Originally, the Department requested six months worth of general fund program receipts. The amendment would provide authorization for three months with anticipation of the transfer of the program on October 1, 1996 rather than January 1, 1997. KURT FREDRIKSSON, ACTING DEPUTY COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, stated that total funding for the program was for $2.1 million dollars. Representative Therriault pointed out that the amendment would only change the source of the funds. The fees will come through the Clean Air Fund rather than the general fund. BARBARA FRANK, BUDGET OFFICER, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, reiterated that the Governor's proposed budget was $2.1 million dollars for FY97. The initial request was for $2.1 million in the Clean Air Fund. DEC then submitted an amendment to convert $1 million dollars to general fund program receipts. There is no change in the level of funding, only the funding source. There being NO OBJECTION, DEC #1 was adopted. Representative Brown MOVED to adopt DEC #2. Representative Therriault OBJECTED. Representative Brown advised that DEC Level Waste Radiation Compact. There are three approved sites in the United States. If participation is not continued, the users in Alaska will not be able to continue use of the site located in Washington State for disposal. Mr. Fredriksson commented that hospitals could privately contract with that facility. Representative Brown explained that there would be large implications resulting from the State not dealing with hazardous waste storage arrangements. A roll call was taken on the MOTION. IN FAVOR: Parnell, Brown, Grussendorf. OPPOSED: Kohring, Martin, Mulder, Therriault, Kelly, Foster. Representatives Hanley and Navarre were not present for the vote. 8 The MOTION FAILED (3-6). Representative Brown MOVED to adopt DEC #3. Representative Therriault OBJECTED. Representative Brown noted that DEC #3 would restore the money that the Governor requested for the vehicle inspection program which passed last session as SB 28. Without funding the request, the software to implement the program will not be installed. Last year's fiscal note was not adequately funded to accomplish the task of the legislation. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf. OPPOSED: Martin, Mulder, Parnell, Therriault, Kelly, Kohring, Foster. Representatives Navarre and Hanley were not present for the vote. The MOTION FAILED (2-7). Representative Brown MOVED to adopt DEC #4. Representative Therriault OBJECTED. Representative Brown advised that if the reduction in this component continues, it would eliminate a major portion of sewage management with regard to subdivision review activities. The action will affect approximately one thousand subdivisions in the Kenai, Matsu and Anchorage areas. Property values could be affected. She stressed that it would be more cost effective to deal with the issues before the building begins and urged Committee members not to do away with that function. Representative Brown continued, it would not be possible to pass the responsibility to the municipalities until the program is self sustaining. The funds need to be provided because they affect public health which is the core function of the State. Representative Brown asked to change the BRU from Air and Water to Statewide Public Services. There being NO OBJECTION, the BRU was changed. Representative Therriault responded that $1.5 million dollars had been restored to Statewide Public Services. Mr. Fredriksson remarked that "sewage on the ground" was the worst situation. Initially in creating a subdivision, checks are made regarding the carrying capacity of the land piece to address a specific load. Representative Navarre questioned information used in bank financing determinations for building codes. Mr. Fredriksson replied that the focus of a financial lending institution would be on the individual lot and system review. Subdivision reviews can 9 have a large effect on what the individual lot system will look like. Representative Therriault stated that the Department would like to devest itself of this entire function, although, the municipalities are reluctant to take on those responsibilities. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf. OPPOSED: Mulder, Navarre, Parnell, Therriault, Martin, Foster. Representatives Kelly, Kohring and Hanley were not present for the vote. The MOTION FAILED (2-6). Representative Therriault requested that DEC #5 be HELD for further consideration. Representative Navarre requested that DEC #6 be HELD. (Tape Change, HFC 96-98, Side 1). Representative Grussendorf MOVED to adopt DEC #7. Representative Mulder OBJECTED. Representative Grussendorf stated that the amendment would provide for one additional seafood inspector. Currently, there is a "glut" of fish and any problems will reflect seriously on the market. Representative Navarre maintained that one incident of contamination would taint the entire fishing industry. Mr. Fredriksson suggested that fees should be charged for the service. Representative Martin interjected that government should not be involved in the process. The seafood industry should hire inspectors. Representative Therriault pointed out that component had $2.7 million dollars remaining. A roll call was taken on the MOTION to adopt DEC #7. IN FAVOR: Navarre, Grussendorf. OPPOSED: Parnell, Therriault, Kelly, Kohring, Martin, Mulder, Foster. Representatives Hanley and Brown were not present for the vote. The MOTION FAILED (2-7). LEGISLATURE 10 Representative Navarre MOVED to adopt LEG #2. Representative Mulder OBJECTED. Representative Navarre advised that the amendment would reduce a per diem increase for legislators and would allocate that amount to the University of Alaska budget. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Navarre. OPPOSED: Parnell, Therriault, Kelly, Kohring, Martin, Mulder, Hanley. Representatives Foster and Brown were not present for the vote. The MOTION FAILED (2-7). Representative Navarre MOVED to adopt LEG #3. Representative Kelly OBJECTED. Representative Navarre advised that the amendment had been offered in an attempt to close the budget gap by having the Legislature participate in "doing its part". Representative Kelly pointed out that the increase was granted through the 18th Legislature. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Navarre. OPPOSED: Therriault, Kelly, Kohring, Martin, Mulder, Parnell, Hanley, Foster. Representative Brown was not present for the vote. The MOTION FAILED (2-8). OFFICE OF THE GOVERNOR Representative Grussendorf MOVED to adopt GOV #1. The amendment would partially restore funding to the Governor's recommendation from below cap underage. Some reduction was merited as a result of a court decision against the closed primary election need to produce two separate ballots and additional training. The Division of Elections has indicated that the subcommittee's recommended reduction was too drastic and that it would threaten the Divisions ability to provide a flawless primary and general election. Co-Chair Hanley OBJECTED, observing that there a carry forward exists from the year before last year. During the last funded election, a two ballot primary existed; the Governor's Office has requested a $573 thousand dollar increment to cover the initial costs. The Conference 11 Committee authorized $400 thousand dollars for the dual primary. In 1996, the Governor left $90 thousand dollars in the base budget. Co-Chair Hanley indicated that this year, the Governor has requested the same amount. For the increased cost request, half has been allocated under the current budget. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre. OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley, Foster. The MOTION FAILED (3-8). FRONT SECTION Co-Chair Hanley distributed committee substitute #9- GH2035\C, Cramer, 3/27/96, to Committee members. He commented that based on the Mental Health Trust Settlement and as requested in statute, a separate bill for the mental health interests has been created. That legislation will have both an operating and capital aspect for the mental health trust authority. When the subcommittee reports were adopted, it included recommendations for mental health spending. MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE, added that the capital appropriations associated with the mental health program would also be included in HB 413. Co-Chair Foster MOVED to adopt the work draft as discussed as the front section to HB 413. There being NO OBJECTION, it was adopted to be incorporated into the Mental Health Trust bill. Co-Chair Hanley provided the Committee with a copy of the Front Section comparison between the Governor and the House Finance Committee recommendations. [Copy on file]. VIRGINIA STONKUS, FISCAL ANALYSTS, LEGISLATIVE FINANCE DIVISION, provided a sectional analysis of the comparison chart. Section #1 deals with the Alaska Clean Air Protection Fund. This section provides transition language for the use of revenues related to the Clean Air Protection Fund (ACAPF). Once approved by the Environmental Protection Agency (EPA), receipts collected from air permit fees would be converted from general fund program receipts to ACAPF receipts. The Governor's Section #1 for Alaska Clean Water Fund would 12 appropriate general funds and federal funds for the Alaska Clean Water Fund. Funding from this fund follows a cycle which begins with the compilation of a funding priority list for waste water treatment and collection systems. To date, the Alaska Clean Water Fund has made 23 loans to communities for a total of $50.5 million dollars. There is currently $17.0 million dollars available from the fund to be loaned for sanitation projects. Ms. Stonkus continued, House Section #3, Governor's Section transfer a portion of the available unrestricted cash in the general account of the AHFC revolving fund, by the direction of the AHFC board, to the general fund. She noted that the amount transferred in FY96 was $70 million dollars. Subsection (b) appropriates any earnings related to AHFC, including loan interest payments, mortgage loan commitment fees, and income earned on assets of the corporation, to AHFC to hold as corporate receipts. Those receipts are to be allocated among the AHFC revolving fund, housing assistance loan fund and the senior housing revolving loan fund. Subsection (c) identifies the amount of corporate receipts to be appropriated to AHFC for housing loan programs not subsidized by AHFC and housing loan programs that are subsidized by AHFC. Ms. Stonkus pointed out that the House would increase by $20 million dollars the portion of the available unrestricted cash in the general account of the AHFC revolving fund to be transferred to the general fund. NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, stated that the $20 million dollar shift would not make that amount available for capital projects from FY96. She summarized that the AHFC, FY96 capital budget was a little less than $53 million dollars. JOHN BITNEY, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE (AHFC), ANCHORAGE, added that the total transfer to the State was $127 million dollars and that included a $57 million dollar transfer to the capital budget. Those funds also included a $22 million dollar transfer to the University. He added that the FY97 budget does not contain any funding for the University. Ms. Stonkus continued, House Section #4 was a new section added by the House to Alaska Industrial Development and Export Authority (AIDEA) which would transfer $21 million 13 dollars of the available unrestricted cash balance in the AIDEA revolving fund, through direction by the board to the general fund. Representative Brown questioned the effect the transfer would have on AIDEA's projects. Ms. Slagle noted that the Governor has resisted any drain on AIDEA in order to determine the most effective way to address their assets. Ms. Stonkus noted that House Section #5, Governor's Section would appropriate from the Permanent Fund Earnings Reserve Account those funds necessary for the dividend program. The amount reflected for transfer to the dividend fund in the Permanent Fund's January report was $621 million dollars. Subsection (b) appropriates from the Permanent Fund Earnings Reserve Account for inflation-proofing. The estimated amount would be $405 million dollars. Subsection (c) would allow for the deposit of any funds that are received that fall within the 25% or 50% split on mineral lease rentals, royalties, royalty sales, etc. to the Permanent Fund. Subsection (d) allows interest earned on certain disputed mineral lease rentals, royalties, sales, etc., and that 25% or 50% of that recovered goes to the Permanent Fund. Any interest that accrues to the Permanent Fund portion of those settlements prior to being recovered by the State, or while held by the State, shall be deposited to the Fund. Subsection (e) provides conditional language appropriating the balance of the Alaska Permanent Fund Earnings Reserve account unless voters ratify a State Constitutional amendment specifying a different use at the 1996 general election. Co-Chair Hanley noted that originally, the Governor had provided over a $1 billion dollar deposit to the Permanent Fund and that Section (e) was the conditional language of that appropriation based on a vote by the people. Ms. Slagle added, that section would transfer the balance. Ms. Stonkus continued, Governor's Section #4 and the House Section #6 are identical and address the Alaska Public Utilities Commission (APUC) estimated carry-forward receipts for the FY97 which range between $150 thousand dollars and $200 thousand dollars. Governor's Section #5 and House Section #7 are identical sections dealing with the Alaska Seafood Marketing Institute 14 (ASMI), an estimated carry-forward of $300 thousand dollars. Representative Martin suggested that an estimate be included. Mr. Greany explained that those funds had been appropriated in a prior year. He agreed that the amount should be disclosed. Ms. Stonkus noted that the Governor's Section #6 addresses the collective bargaining agreement monetary terms. This section would appropriate funds from the general fund to the Department of Administration for payment to the Alaska Public Employees' Association (APEA)/supervisory unit for training to satisfy the terms of the collective bargaining agreement for the fiscal year ending June 30, 1997. The House deleted that section. Mr. Greany stated that House Section #8, Governor's Section (a) and (b) would allow the State to cover any shortfall in unrestricted State revenues available for appropriation in FY97 from the CBR per Article IX, Section #17. The amount necessary to balance general fund revenues and appropriations would be appropriated to the general fund from the CBR. Subsection (c) stipulates that appropriations made by (a) & (b) of that section are made under Article IX, Section material from the general operations budget. (Tape Change, HFC 96-98, Side 2). Ms. Stonkus addressed House Section #9 - disapproval of monetary terms. The section stipulates that unless the Legislature adopts a separate appropriation measure to fund the monetary terms of the collective bargaining units of ASEA/General Government, APEA/Supervisory Unit, LTC, IBU, MMP unit, PSEA, Alyeska Centralized School Employees Assn., IBEW/Court System, U of A/Classified Employees, and Alaska Community Colleges Federation of Teachers, the monetary terms of the above referenced bargaining agreements would be rejected. Ms. Stonkus continued, House Section #10, Governor's Section Fund. Ms. Slagle explained to Representative Martin that $9 million dollars federal funds had been appropriated this year. Ms. Stonkus stated that House Section #11 and the Governor's Section #9 would allocate federal and other program receipts. Subsection (a) is boiler plate language that provides for additional funding authority for excess federal 15 and program receipts through the Legislative Budget and Audit Committee (LBA) process. Subsections (b) and (c) are boiler plate language which allows state funds to be reduced if additional federal or other funds are available and permitted by federal statutes, and requires that for any shortfall of federal or program receipts, the appropriation would be reduced accordingly. That language would prohibit agencies from expending receipt authority for revenues they would not actually receive. The House did as it did in FY96 and amended Subsection (d) to cap the possible general fund offset for TItle XX at $6.31 million dollars. Ms. Stonkus pointed out that House Section #12 and Governor's Section #10 for the Four Dam Pool Transfer Fund were identical. This would make the necessary appropriation from the Four Dam Pool Transfer Fund to the Southeast Energy Fund the Power Cost Equalization, Rural Electric Capitalization Fund and the Power Project Fund. The Governor's Section #11, House Section #13 address the Information Services Fund (ISF). The appropriation would cover those services provided by the Department of Administration (DOA) for information and telecommunications. The House reduced I/A receipts to reflect House action on salary increases. Ms. Stonkus continued, the Governor's Section #12 and the House Section #14 addressed Insurance Claims and Reclamation of State Land. The House added the Governor's amended language. Subsection (a) would allow up to $5 million dollars to be "swept" from otherwise lapsing general fund appropriations for catastrophic reserve purposes. House Section #15, Governor's Section #13 addresses the Marine Highway System Fund (AMHS). Chapter 193 SLA 1990 created the Alaska Marine Highway System Fund. Its purpose is to provide stability to the marine highway system by appropriating a consistent amount of general funds each year to be combined with the marine highway system's revenue. The House reduced the general fund transfer to reflect House action on salary adjustments, CIP transfers and subcommittee action. House Section #16, Governor's Section #14 addresses highway and aviation fuel tax. Both recommendations are the same. The House Section #17 and the Governor's Section #15 are identical and allows for the general fund program receipts from occupational licensing fees under AS 08.01.065 to be carried forward for operating costs in FY97. 16 Ms. Stonkus continued, House Section #18, Governor's Section Prevention (OHSRP) account which contains funds appropriated from the general fund to the OHSRPR Fund from the 3% surcharge collected in the general fund during FY96. The OHSRP prevention mitigation account is a sub-account of the general fund. The prevention mitigation account receives money recovered from parties responsible for containment and cleanup of oil or other hazardous substances. The two proposals are the same. Ms. Stonkus stated that House Section #19, Governor's Section #17 were the same and would address the Oil and Hazardous Substance Release Response account. The response account contains funds appropriated from the general fund to the OHSRPR Fund from the 2 cent surcharge collected in the general fund during FY96. House Section #20 and the Governor's amended section deals with the retained fees. The language addresses the need to appropriate vendor compensation/bankcard service fees. The House amended the Governor's amended language to include all fund sources for vendor compensation of fishing and hunting licenses. Ms. Stonkus advised that House Section #21 and Governor's Section #18 would appropriate general fund salmon enhancement tax receipts to the Department of Commerce and Economic Development for qualified regional associations operating within a region designated under AS 16.10.375. The two are identical. The House Section #23 and Governor's Section #20 are identical and would appropriate general funds to the Department of Revenue in the amounts necessary to refund local governments their share of taxes and fees collected for payment in FY97. Ms. Slagle pointed out that the Administration has no discretion as to what can be done with the funds. It is set in statute that a certain percentage of the shared taxes received have to be returned to the communities. Ms. Stonkus noted that House Section #24 and Governor's Section #21 address the debt service appropriations. The Governor's section dealt with the transfers from the general fund to the debt service and from debt service to the appropriate sources. The House amended the Governor's to include individual subsections for transfers from the Alaska debt retirement fund for leases (d), G.O. debt (e), from the 17 International Airports Revenue Fund for revenue bond debt (f), and from the Alaska debt retirement fund to the Department of Education from school debt (g). House Section #25 and Governor's Section #22 basically are identical and address the State Training and Employment Program funded from the Employment and Training Program Account (ETPA). That account is created through a contribution of one-half of one percent from each employees' wage. Unspent balances must be lapsed from this account into the unemployment compensation fund. This section makes that appropriation. House Section #26, Governor's Section #23 addresses the storage tank registration fees and would allow the Legislature to appropriate on an annual basis to the storage tank assistance fund from the general fund any registration fees collected on underground petroleum storage tanks or tank systems. Estimate of receipts collected in FY96 for deposit into the Storage Tank Assistance Fund is $280 million dollars. That figure was determined through work with the agencies and through the Governor's budget. The Governor's amended proposed a section for the Exxon Valdez Spill Settlement Fund. Subsection (b) identifies inter-agency receipts as the fund source for Trustee Council projects in the back section of the appropriation bill, and gives OMB/EVOSS Trustee Council the authority to reallocate the inter-agency receipts between and among the agencies. Subsection (c) notes that any excess appropriations or shortfalls will be addressed by the Legislative Budget and Audit Committee (LBA). Subsection (d) extends the lapse date for the funds through 9/30/97. The House deleted that section. EVOSS projects proposed in the Governor's amended budget will be funded directly with EVOSS funds in the House budget. Interim adjustments could be accommodated through the normal Legislative Budget and Audit Committee process. Ms. Stonkus commented that House Section #27, Governor's Section #24 was prompted by the omnibus fee bill dealing with loan guarantee fees, and appropriating those fees to offset losses. Representative Mulder MOVED to adopt the Front Section for HB 412. There being NO OBJECTION, it was adopted. HB 412 was HELD in Committee for further consideration. HB 413 was HELD in Committee for further consideration.