Legislature(1993 - 1994)

04/02/1993 08:40 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                          April 2, 1993                                        
                            8:40 a.m.                                          
                                                                               
  TAPE HFC 93-89, Side 1, #000 - 561.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 8:40 a.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson             Representative Hoffman                           
  Co-Chair MacLean            Representative Martin                            
  Vice-Chair Hanley           Representative Navarre                           
                                Representative Parnell                         
  Representative Foster       Representative Therriault                        
  Representative Grussendorf                                                   
                                                                               
  Representative Brown was absent from the meeting.                            
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Olberg,  Representative   Phillips;  Charles                 
  Cole, Attorney General, Department of Law.                                   
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 76     "An Act  making  a special  appropriation  to  the                 
            Department of Natural  Resources for the  purchase                 
            of   the  inholdings   of   the  Seldovia   Native                 
            Association and  the Cook Inlet Region,  Inc., and                 
            the timber rights  of the Timber  Trading Company,                 
            within the Kachemak Bay State  Park; and providing                 
            for an effective date."                                            
                                                                               
            HB  76  was  reported out  of  Committee  with "no                 
            recommendation."                                                   
                                                                               
  HB 113    "An   Act   regulating    the   solicitation    of                 
            contributions by charitable organizations and paid                 
            solicitors  and  the  solicitation   of  sales  by                 
            telephonic  means; and  amending  Alaska Rules  of                 
            Civil Procedure 79 and 82."                                        
                                                                               
            CSHB 113 (FIN) was reported  out of Committee with                 
            a "do pass" recommendation and  with a zero fiscal                 
            note  by  the Department  of Public  Safety, dated                 
            3/5/93.                                                            
                                                                               
  HB 197    "An  Act making  an appropriation  to the  Alyeska                 
                                                                               
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            Settlement Fund and making appropriations from the                 
            Alyeska Settlement  Fund;  and  providing  for  an                 
            effective date."                                                   
                                                                               
            HB  197   was  reported  out  of   Committee  with                 
            "individual  recommendations"  and  with a  fiscal                 
            impact note  by the  Department of  Transportation                 
            and Public Facilities.                                             
  HOUSE BILL NO. 113                                                           
                                                                               
       "An Act regulating the solicitation of contributions by                 
       charitable organizations  and paid  solicitors and  the                 
       solicitation of sales by telephonic means; and amending                 
       Alaska Rules of Civil Procedure 79 and 82."                             
                                                                               
  Co-Chair  Larson  provided  members with  AMENDMENT  NO.  1.                 
  (Attachment 1).                                                              
                                                                               
  Representative Foster MOVED to ADOPT AMENDMENT NO. 1.  There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Representative  Foster  MOVED  to  report  CSHB 113  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being  NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSHB 113  (FIN) was  reported out  of Committee  with a  "do                 
  pass"  recommendation and  with a  zero fiscal  note by  the                 
  Department of Public Safety, dated 3/5/93.                                   
  HOUSE BILL NO. 197                                                           
                                                                               
       "An  Act  making   an  appropriation  to   the  Alyeska                 
       Settlement Fund  and  making  appropriations  from  the                 
       Alyeska Settlement Fund; and providing for an effective                 
       date."                                                                  
                                                                               
  Representative Larson  noted that  the original  HB 197  was                 
  before the Committee.                                                        
                                                                               
  REPRESENTATIVE HARLEY OLBERG spoke in support of HB 197.  He                 
  explained that HB 197:                                                       
                                                                               
       *    Appropriates  $28.2  million   dollars  from   the                 
            Alyeska Settlement fund;                                           
                                                                               
       *    14.5 million dollars  of the $28.0  million dollar                 
            appropriation  is  for docks  and  construction of                 
            response  storage  facilities   at  Tatitlek   and                 
            Chenega;                                                           
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
       *    $6 million dollars  is for  the construction of  a                 
            road from Cordova to Shepard Point;                                
                                                                               
       *    $7.5 million is  for the  acquisition of land  for                 
            the Kachemak bay State Pard and;                                   
                                                                               
       *    $200.0  thousand  dollars  is  for  communications                 
            equipment to be  purchased by  the US Coast  Guard                 
            and the State.                                                     
                                                                               
  Representative Olberg pointed out that the total  settlement                 
  is $31.7 million dollars.                                                    
                                                                               
  Representative  Parnell  MOVED  to  report  HB  197  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.                                                    
                                                                               
  Representative Therriault  asked who would  own and  operate                 
  the Shepard Point dock.                                                      
                                                                               
  CHARLES COLE, ATTORNEY GENERAL, DEPARTMENT OF LAW noted that                 
  the question is  being addressed by  the Senate.  He  stated                 
  that the Department of Transportation and  Public Facilities                 
  would probably build the dock.                                               
                                                                               
  There being NO OBJECTION, HB 197 was moved from committee.                   
                                                                               
  HB  197  was  reported  out  of Committee  with  "individual                 
  recommendations"  and  with  a  fiscal  impact note  by  the                 
  Department of Transportation and Public Facilities.                          
  HOUSE BILL NO. 76                                                            
                                                                               
       "An   Act  making   a  special  appropriation   to  the                 
       Department of Natural Resources for the purchase of the                 
       inholdings of the Seldovia  Native Association and  the                 
       Cook  Inlet Region, Inc., and  the timber rights of the                 
       Timber Trading  Company, within the Kachemak  Bay State                 
       Park; and providing for an effective date."                             
                                                                               
  REPRESENTATIVE GAIL PHILLIPS spoke in support of HB 76.  She                 
  emphasized that there  are no general funds  involved in the                 
  buy out.   She noted that $7.5  of the $20.5  million dollar                 
  Alyeska Settlement Fund is allocated  for Kachemak Bay State                 
  Park.    There   is  an   additional  $7.5  million   dollar                 
  appropriation for Kachemak Bay State Park from the Exxon Oil                 
  Spill Trust  Council.  The  remaining $7 million  dollars is                 
  appropriated from criminal fines levied against Exxon.                       
                                                                               
  Representative Martin  expressed concern that  the Katchemak                 
  Bay State Park purchases contain Spruce beetle infestations.                 
  Representative Phillips pointed  to a  letter by the  United                 
                                                                               
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  States  Department of  Agriculture  which  states  that  the                 
  infestation is only in the surrounding area (Attachment 2).                  
                                                                               
  Representative Hoffman asked  the Administration's plans  in                 
  regards to the  proposed Katchemak Bay State  Park buy-back.                 
  He noted  that the  Governor vetoed  appropriations for  the                 
  buy-back that were contained in legislation  passed in FY 93                 
  (HB  411).  Attorney General Cole  observed that funding for                 
  the  Katchemak  Bay  State  Park  buy-back  is  included  in                 
  legislation offered by the Governor in regards to allocation                 
  of Exxon criminal fines.                                                     
                                                                               
  Representative  Hoffman observed that a principle reason for                 
  the Governor's  veto of HB  411 was to  allow a trust  to be                 
  created in order that the State continue to use the interest                 
  on an ongoing basis.  Attorney  General Cole stressed that a                 
  principle  reason  for  the Governor's  veto  was  that many                 
  projects  included in HB 411 were not linked to restoration,                 
  replacement or enhancement of the damaged natural resources.                 
  He emphasized that  Katchemak Bay contains  critical habitat                 
  for species that were adversely affected by the oil spill.                   
                                                                               
  Co-Chair  Larson  asked if  the  subsurface rights  would be                 
  included in the  purchase.   Attorney General Cole  answered                 
  that subsurface rights are included in the purchase.                         
                                                                               
  Co-Chair Larson asked if $22  million dollars represents the                 
  fair value cost  of the inholdings.   Attorney General  Cole                 
  assured members that  $22 million dollars represents  a fair                 
  and reasonable price.                                                        
                                                                               
  Representative Foster MOVED to report HB 76 out of Committee                 
  with individual recommendations.   There being NO OBJECTION,                 
  it was so ordered.                                                           
                                                                               
  HB   76   was   reported   out   of   Committee   with   "no                 
  recommendation."                                                             
                                                                               
  Representative  Martin provided  members  with a  letter  of                 
  intent:    "It is  the intent  of  the Legislature  that the                 
  owner(s)  of the  timber of  Kachemak Bay Park  purge spruce                 
  infected  trees  and  reforest the  park  before  payment is                 
  advanced."                                                                   
                                                                               
  Representative  Grussendorf noted  that spruce  bark beetles                 
  are always in the timber.  He felt that the letter of intent                 
  would be too confining.                                                      
                                                                               
  Representative Martin MOVED to ADOPT the letter of intent.                   
                                                                               
  Co-Chair MacLean OBJECTED.                                                   
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
  A roll call vote was taken on the motion.                                    
                                                                               
  IN FAVOR: Martin                                                             
  OPPOSED:  Foster, Hanley, Parnell,  Therriault, Grussendorf,                 
                 Hoffman, Navarre, MacLean, Larson                             
                                                                               
  Representative Brown was absent from the meeting.                            
                                                                               
  The MOTION FAILED (1-9).                                                     
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 9:10 a.m.                                           
                                                                               
                                                                               
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