Legislature(1993 - 1994)

03/23/1993 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                         March 23, 1993                                        
                            8:00 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Al Vezey, Chairman                                            
  Representative Pete Kott, Vice Chairman                                      
  Representative Harley Olberg                                                 
  Representative Jerry Sanders                                                 
  Representative Gary Davis                                                    
  Representative Fran Ulmer                                                    
  Representative Bettye Davis                                                  
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  OTHER HOUSE MEMBERS PRESENT                                                  
                                                                               
  Representative John Davies                                                   
                                                                               
  SENATORS PRESENT                                                             
                                                                               
  Senator Loren Leman                                                          
                                                                               
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HCR 10   Relating to certification of the Alaska State                      
            Legislature's opposition to requiring suspension                   
            of a driver's license for drug offenses.                           
                                                                               
            MOVED FROM COMMITTEE WITH A DO PASS RECOMMENDATION                 
                                                                               
  *HB 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."                                                   
                                                                               
            CSHB 197 (STA) MOVED FROM COMMITTEE WITH A DO                      
            PASS RECOMMENDATION                                                
                                                                               
  SB 90     "An Act clarifying powers and duties of state                      
            officials in relation to a disaster emergency                      
            caused by a catastrophic oil discharge or the                      
            release of a hazardous substance."                                 
                                                                               
            MOVED FROM COMMITTEE WITH A DO PASS RECOMMENDATION                 
                                                                               
  HB 65     "An Act relating to the improvement of state                       
            finances through reduction of operating costs of                   
            certain state agencies and establishment of                        
            certain fees; and providing for an effective                       
            date."                                                             
                                                                               
            CSHB 65 (STA) MOVED FROM COMMITTEE WITH NO                         
            RECOMMENDATIONS                                                    
                                                                               
  HB 59     "An Act making a special appropriation to the                      
            Department of Natural Resources for refunds to                     
            certain veterans who purchased state land and for                  
            reimbursement to the University of Alaska for the                  
            veterans' land discount applied to land                            
            transferred to the University of Alaska; and                       
            providing for an effective date."                                  
                                                                               
            MOVED FROM COMMITTEE WITH A DO PASS RECOMMENDATION                 
                                                                               
  HB 37     "An Act relating to open meetings of governmental                  
            bodies."                                                           
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  (* first public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Jeannie Smith, Legislative Aide                                              
    to Representative Richard Foster                                           
  State Capitol, Court Room 611                                                
  Juneau, Alaska 99801-1182                                                    
  465-3789                                                                     
  Position Statement: Delivered sponsor statement, HCR 10                      
                                                                               
  Representative John Davies                                                   
  State Capitol, Court Room 604                                                
  Juneau, Alaska 99801-1182                                                    
  465-4457                                                                     
  Position Statement: Prime Sponsor, 2D SSHB 37                                
                                                                               
  Rosalee Walker, President                                                    
  Alaska Municipal League                                                      
  217 2nd Street                                                               
  Juneau, Alaska  99811                                                        
  586-1325                                                                     
  Position Statement: Supported 2D SSHB 37                                     
                                                                               
  Kent Swisher, Director                                                       
  Alaska Municipal League                                                      
  217 2nd Street                                                               
  Juneau, Alaska  99811                                                        
  586-1325                                                                     
  Position Statement: Supported 2D SSHB 37                                     
                                                                               
  Wendy Redman, Vice President                                                 
  for University Relations                                                     
  University System                                                            
  910 Yukon Drive                                                              
  Fairbanks, Alaska  99775-5560                                                
  474-7582                                                                     
  Position Statement: Supported 2D SSHB 37; provided                           
                      information on HB 59                                     
                                                                               
  Senator Loren Leman                                                          
  Room 113, State Capitol                                                      
  Juneau, Alaska 99801-1182                                                    
  465-2095                                                                     
  Position Statement: Prime Sponsor, SB 90                                     
                                                                               
  Jeff Morrison, Director                                                      
  Administrative and Support Services Division                                 
  Department of Military and Veterans Affairs                                  
  5th Floor, Goldstein Bldg.                                                   
  P.O. Box 110900                                                              
  Juneau, Alaska 99801-0900                                                    
  465-4730                                                                     
  Position Statement: Supported the intent of SB 90                            
                                                                               
  Donald G. Study, Acting Director                                             
  Division of Labor Standards and Safety                                       
  Department of Labor                                                          
  P.O. Box 20630                                                               
  Juneau, Alaska 99802-0630                                                    
  465-4855                                                                     
  Position Statement: Opposed deletion of Section 44 of HB 65                  
                                                                               
  Representative Harley Olberg                                                 
  Room 110, State Capitol                                                      
  Juneau, Alaska 99801-1182                                                    
  465-4859                                                                     
  Position Statement: Prime Sponsor, HB 197                                    
                                                                               
  Craig Tillery, Assistant Attorney General                                    
  Department of Law                                                            
  1031 W. 4th Ave., Suite 200                                                  
  Anchorage, Alaska 99501                                                      
  269-5274                                                                     
  Position Statement: Provided information on HB 197                           
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HCR 10                                                                
                                                                               
  SHORT TITLE:  FEDERAL-AID HY FUNDING/DRUG ENFORCEMENT                        
  BILL VERSION: CSHCR 10(HES) AM                                               
  SPONSOR(S):   TRANSPORTATION BY REQUEST                                      
  TITLE: Relating to allowing the state the right to determine                 
  and impose sanctions on motor vehicle drivers.                               
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  02/24/93       433    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/24/93       433    (H)   STATE AFFAIRS, HES, JUDICIARY                    
  03/23/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HB 197                                                                
                                                                               
  SHORT TITLE:  APPROP: ALYESKA SETTLEMENT                                     
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) OLBERG                                       
  TITLE: "An Act making an appropriation to the Alyeska                        
  Settlement Fund and making appropriations from the Alyeska                   
  Settlement Fund; and providing for an effective date."                       
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  03/03/93       520    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/03/93       520    (H)   STATE AFF, OIL & GAS,                            
                              RESOURCES, FINANCE                               
  03/23/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  SB 90                                                                 
                                                                               
  SHORT TITLE:  DECLARATION OF DISASTER EMERGENCIES                            
  BILL VERSION:                                                                
  SPONSOR(S):   SENATOR(S) LEMAN                                               
  TITLE: "An Act clarifying powers and duties of state                         
  officials in relation to disaster emergency caused by a                      
  catastrophic oil discharge or the release of a hazardous                     
  substance."                                                                  
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  02/05/93       245    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  02/05/93       246    (S)   OIL & GAS, RESOURCES                             
  02/16/93              (S)   O&G AT 11:00 AM BELTZ ROOM 211                   
  02/16/93              (S)   MINUTE(O&G)                                      
  02/17/93       386    (S)   O&G RPT  3DP                                     
  02/17/93       386    (S)   ZERO FISCAL NOTES (DMVA, DEC)                    
  02/22/93              (S)   RES AT 03:30 PM BUTROVICH ROOM                   
                              205                                              
  02/24/93              (S)   RES AT 03:30 PM BUTROVICH ROOM                   
                              205                                              
  02/24/93              (S)   MINUTE(RES)                                      
  02/25/93       482    (S)   RES RPT  3DP 2NR                                 
  02/25/93       482    (S)   PREVIOUS ZERO FNS (DMVA, DEC)                    
  03/04/93              (S)   RLS AT 03:00 PM                                  
  03/04/93              (S)   MINUTE(RLS)                                      
  03/08/93       658    (S)   RULES RPT  3CAL 1NR    3/8/93                    
  03/08/93       668    (S)   READ THE SECOND TIME                             
  03/08/93       668    (S)   ADVANCED TO THIRD READING UNAN                   
                              CONSENT                                          
  03/08/93       668    (S)   READ THE THIRD TIME  SB 90                       
  03/08/93       669    (S)   RETURN TO SECOND FOR AM 1  UNAN                  
                              CONSENT                                          
  03/08/93       669    (S)   AM NO  1   WITHDRAWN BY SPONSOR                  
  03/08/93       669    (S)   AUTOMATICALLY IN THIRD READING                   
  03/08/93       669    (S)   PASSED Y18 N1 E1                                 
  03/08/93       677    (S)   TRANSMITTED TO (H)                               
  03/10/93       582    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/10/93       582    (H)   STATE AFFAIRS, RESOURCES                         
  03/23/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HB 65                                                                 
                                                                               
  SHORT TITLE:  FINANCIAL ADMINISTRATION OF STATE GOVT.                        
  BILL VERSION:                                                                
  SPONSOR(S):   RULES BY REQUEST OF THE GOVERNOR                               
  TITLE: "An Act relating to the improvement of state finances                 
  through reduction of operating costs of certain state                        
  agencies and establishment of certain fees and providing for                 
  an effective date."                                                          
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/15/93        75    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/15/93        75    (H)   L&C, STATE AFFAIRS, JUDICIARY,                   
                              FINANCE                                          
  01/15/93        75    (H)   -8 FNS(2-DEC, 2-DHSS, LABOR,                     
                              DNR, DPS                                         
  01/15/93        75    (H)   ADM)  PUBLISHED 1/15/93                          
  01/15/93        75    (H)   -5 REVENUE FNS(DPS, 2-LABOR, 2-                  
                              DOE)1/15                                         
  01/15/93        75    (H)   -5 ZERO FNS (3-ADM, LABOR, REV)                  
                              1/15/93                                          
  01/15/93        75    (H)   GOVERNOR'S TRANSMITTAL LETTER                    
  02/01/93       201    (H)   -REVISED FN  (DNR) 2/1/93                        
  02/08/93       251    (H)   -CORRECTED FN (DNR)  2/8/93                      
  02/09/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  02/09/93              (H)   MINUTE(L&C)                                      
  02/11/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  02/23/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  03/01/93       478    (H)   L&C RPT  CS(L&C) NEW TITLE 3DP                   
                              1NR                                              
  03/01/93       478    (H)   DP: PORTER, SITTON, GREEN                        
  03/01/93       478    (H)   NR:  HUDSON                                      
  03/01/93       479    (H)   -REVENUE FN (DPS) 3/1/93                         
  03/01/93       479    (H)   -ZERO FISCAL NOTE  (ADM) 3/1/93                  
  03/01/93       479    (H)   -7 PREV FNS (2-DEC, 2-DHSS,                      
                              LABOR, DPS                                       
  03/01/93       479    (H)   ADM) 1/15/93   PREV FN (DNR)                     
                              2/8/93                                           
  03/01/93       479    (H)   -5 PREV REV FNS(DPS, 2-LABOR,                    
                              2-DOE)1/15                                       
  03/01/93       479    (H)   -5 PREV ZERO FNS(3-ADM,LABOR,                    
                              REV)1/15/93                                      
  03/16/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/16/93              (H)   MINUTE(STA)                                      
  03/20/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/23/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HB 59                                                                 
                                                                               
  SHORT TITLE:  APPROP: VETS' LAND DISCOUNT REFUND                             
  BILL VERSION:                                                                
  SPONSOR(S):   SPECIAL CMTE MILITARY & VETERANS AFFAIRS                       
  TITLE: "An Act making a special appropriation to the                         
  Department of Natural Resources for refunds to certain                       
  veterans who purchased state land and for reimbursement to                   
  the University of Alaska for the veterans' land discount                     
  applied to land transferred to the University of Alaska; and                 
  providing for an effective date."                                            
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/15/93        72    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/15/93        72    (H)   MIL & VET AFF, STATE AFFAIRS,                    
                              FINANCE                                          
  02/18/93              (H)   MLV AT 10:00 AM CAPITOL 17                       
  02/24/93              (H)   MLV AT 05:00 PM CAPITOL 17                       
  02/24/93              (H)   MINUTE(MLV)                                      
  03/01/93       483    (H)   MLV RPT  CS(MLV) 4DP                             
  03/01/93       483    (H)   DP: MULDER, WILLIS, FOSTER,                      
                              NAVARRE                                          
  03/01/93       484    (H)   -ZERO FISCAL NOTE  (DNR) 3/1/93                  
  03/16/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/16/93              (H)   MINUTE(STA)                                      
  03/23/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HB 37                                                                 
                                                                               
  SHORT TITLE:   OPEN MEETINGS LAW AMENDMENTS                                  
  BILL VERSION:  2D SSHB 37                                                    
  SPONSOR(S):    REPRESENTATIVE(S) DAVIES,Therriault,Brice                     
  TITLE: "An Act relating to open meetings of governmental                     
  bodies."                                                                     
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/08/93        34    (H)   PREFILE RELEASED                                 
  01/11/93        34    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        34    (H)   STATE AFFAIRS, JUDICIARY                         
  01/20/93       117    (H)   COSPONSOR(S): BRICE                              
  02/11/93       321    (H)   SPONSOR SUBSTITUTE INTRODUCED-                   
                              REFERRALS                                        
  02/11/93       322    (H)   STATE AFFAIRS, JUDICIARY                         
  03/10/93       589    (H)   2D SPONSOR SUBSTITUTE INTRO-                     
                              REFERRALS                                        
  03/10/93       589    (H)   STATE AFFAIRS, JUDICIARY                         
  03/23/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-32, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN AL VEZEY called the House State Affairs Committee                   
  to order at 8:02 a.m., on March 23, 1993, and noted all                      
  members were present.  Also in attendance were                               
  Representative John Davies and Senator Loren Leman.                          
                                                                               
  HCR 10:  FEDERAL-AID HY FUNDING/DRUG ENFORCEMENT                             
                                                                               
  Number 016                                                                   
                                                                               
  CHAIRMAN VEZEY read the title to HCR 10 and called for its                   
  sponsor to deliver his statement.                                            
                                                                               
  Number 026                                                                   
                                                                               
  JEANNIE SMITH, LEGISLATIVE AIDE TO REPRESENTATIVE RICHARD                    
  FOSTER, PRIME SPONSOR OF HCR 10, delivered the sponsor's                     
  statement for HCR 10.  She noted the resolution's necessity                  
  to ensure federal highway funding for Fiscal Year 94, and                    
  95, and told the committee that unless the legislature                       
  passed HCR 10, Alaska would lose $9.6 million for funding in                 
  1994 and 1995, and $19.2 million for each fiscal year                        
  thereafter.  She noted passing HCR 10 does not mean Alaska                   
  will comply with federal mandates involving revoking                         
  drivers' licenses.  Instead, it simply complies with the                     
  mandate that the legislature look at the idea.                               
                                                                               
  Number 091                                                                   
                                                                               
  CHAIRMAN VEZEY asked for clarification on the deadline for                   
  HCR 10's passage.                                                            
                                                                               
  MS. SMITH stated April 1, 1993, was the deadline for passage                 
  of HCR 10.                                                                   
                                                                               
  Number 101                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG asked if passing HCR 10 would                   
  comply with the federal mandate.                                             
                                                                               
  MS. SMITH stated it would.                                                   
                                                                               
  CHAIRMAN VEZEY explained the federal regulation allowed                      
  states two options:  To either pass a law suspending                         
  drivers' licenses for drug offenses, or to inform the                        
  government it will not.  He stated HCR 10 would do the                       
  latter.                                                                      
                                                                               
  Number 134                                                                   
                                                                               
  REPRESENTATIVE BETTYE DAVIS MOVED passage of HCR 10.                         
                                                                               
  Number 153                                                                   
                                                                               
  HCR 10 PASSED by a 6-1 vote, Representative Sanders voting                   
  NO.                                                                          
                                                                               
  HB 37:  OPEN MEETINGS LAW AMENDMENTS                                         
                                                                               
  Number 156                                                                   
                                                                               
  CHAIRMAN VEZEY read the title to the 2D SSHB 37 and invited                  
  its sponsor to the table.                                                    
                                                                               
  Number 166                                                                   
                                                                               
  REPRESENTATIVE JOHN DAVIES, PRIME SPONSOR OF HB 37, outlined                 
  his reasoning behind the bill's introduction.  He stated the                 
  latest version (2D SSHB 37) makes several changes in the                     
  existing law, including the requirement of 72 hours' notice                  
  of a public meeting; the posting of a meeting's subjects;                    
  and, the definition of how many members of a body constitute                 
  an official meeting.  He noted several lawsuits have yielded                 
  conflicting court opinions on the current law, and said the                  
  confusion is keeping good people from running for public                     
  office.  He also cited his own experience on the Fairbanks                   
  Borough Assembly, in which a Borough attorney was unable to                  
  make sense of the law, and urged members to clarify that law                 
  with HB 37.                                                                  
                                                                               
  Number 425                                                                   
                                                                               
  CHAIRMAN VEZEY agreed the Open Meetings Act was "broken" and                 
  needed to be "fixed."  He told the committee he had also                     
  been at work on a bill similar to 2D SSHB 37, but had                        
  several differences in mind.  Those differences included:                    
  1) making an official meeting a gathering of a quorum as                     
  opposed to a simple majority of a quorum; 2) excluding                       
  attorney-client privilege, because it is guaranteed in the                   
  constitution; 3) mandating all parties in an open meetings                   
  lawsuit pay their own costs; and, 4) that agency                             
  publications need not be provided at teleconference sites.                   
  He then called for further testimony on 2D SSHB 37.                          
                                                                               
  Number 492                                                                   
                                                                               
  ROSALEE WALKER, PRESIDENT, ALASKA MUNICIPAL LEAGUE,                          
  testified in favor of 2D SSHB 37, saying the League supports                 
  the idea of open meetings and the current law is too                         
  cumbersome.  She pointed out in small communities, people                    
  are violating the law every day because in some court                        
  opinions, two people talking constitutes a meeting.  She                     
  also cited the last Cordova election, where people refused                   
  to run for office because of the open meetings law, and a                    
  newcomer was able to win election with a write-in campaign.                  
                                                                               
  Number 529                                                                   
                                                                               
  REPRESENTATIVE FRAN ULMER asked if it was critical to pass a                 
  new law this year.                                                           
                                                                               
  Number 531                                                                   
                                                                               
  MS. WALKER replied, "The sooner the better."  She noted many                 
  cities have already lost money fighting lawsuits, and other                  
  lawsuits are pending action on 2D SSHB 37.                                   
                                                                               
  Number 538                                                                   
                                                                               
  REPRESENTATIVE ULMER asked if Ms. Walker had a preference on                 
  what constituted a meeting, a quorum or a majority of a                      
  body's membership.                                                           
                                                                               
  Number 543                                                                   
                                                                               
  MS. WALKER replied she did not care which one became law.                    
  Her primary concern was that cities would have a definite                    
  guideline.                                                                   
                                                                               
  Number 551                                                                   
                                                                               
  KENT SWISHER, DIRECTOR, ALASKA MUNICIPAL LEAGUE, testified                   
  in favor of 2D SSHB 37, saying the League's official                         
  position was that a quorum should qualify as the standard                    
  for a meeting, and the League would like to see a provision                  
  allowing groups to see an individual member of a body                        
  without violating the law.  He stated that in smaller towns                  
  of less than 300, some of the restrictions in 2D SSHB 37                     
  might not be practical.                                                      
                                                                               
  Number 578                                                                   
                                                                               
  WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS FOR                    
  THE UNIVERSITY SYSTEM, testified in favor of 2D SSHB 37, but                 
  said the university system would also like to see further                    
  clarification of what kinds of meetings would be subject to                  
  the law.                                                                     
                                                                               
  Number 586                                                                   
                                                                               
  REPRESENTATIVE ULMER asked which standard for an official                    
  meeting the university favored, the majority or a quorum.                    
                                                                               
  MS. REDMAN responded that the university favored a quorum to                 
  be the standard.                                                             
                                                                               
  Number 590                                                                   
                                                                               
  REPRESENTATIVE ULMER stated the revision of the open                         
  meetings law had been held up long enough and it might be                    
  best to compromise several points of view in a committee                     
  substitute (CS).                                                             
                                                                               
  Number 601                                                                   
                                                                               
  CHAIRMAN VEZEY declared he did not submit his version as a                   
  CS out of respect to the sponsor of 2D SSHB 37, and asked if                 
  Representative Davies had any objection to the idea.                         
                                                                               
  Number 614                                                                   
                                                                               
  REPRESENTATIVE DAVIES had no opposition to working on a CS                   
  to 2D SSHB 37, but was concerned that under a quorum                         
  standard, three or four people on a committee could meet                     
  without it constituting an official meeting, and still                       
  control an issue.  He was also concerned about preventing a                  
  series of smaller meetings that would effectively convene a                  
  quorum.                                                                      
                                                                               
  SB 90:  DECLARATION OF DISASTER EMERGENCIES                                  
                                                                               
  TAPE 93-32, SIDE B                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN VEZEY deferred taking action on 2D SSHB 37, and                     
  read the title to SB 90.  He then invited SB 90's sponsor to                 
  the table for his statement.                                                 
                                                                               
  Number 024                                                                   
                                                                               
  SENATOR LOREN LEMAN, PRIME SPONSOR OF SB 90, explained the                   
  bill's intent to clarify the relationship between the                        
  Department of Environmental Conservation (DEC) and the                       
  Department of Military and Veterans Affairs (DMVA) in the                    
  event of an emergency.  He stated SB 90 would give the DMVA                  
  the capability to declare an emergency in the event of an                    
  Exxon Valdez type oil spill which, he believed, brought                      
  about the need for this bill.  He further believed SB 90 was                 
  consistent with a memo of agreement between the DEC and the                  
  DMVA after the Exxon Valdez oil spill.                                       
                                                                               
  Number 074                                                                   
                                                                               
  REPRESENTATIVE ULMER understood SB 90 to be a "housekeeping"                 
  bill, but wanted to make sure the committee was not making a                 
  policy decision.                                                             
                                                                               
  SENATOR LEMAN clarified SB 90 was not a policy decision, but                 
  rather a clarification of duties between the two agencies                    
  that had previously been discussed on the House floor.                       
                                                                               
  Number 112                                                                   
                                                                               
  JEFF MORRISON, DIRECTOR, ADMINISTRATIVE AND SUPPORT SERVICES                 
  DIVISION, DMVA, assured the committee the DMVA is in full                    
  agreement with the intent of SB 90.                                          
                                                                               
  Number 122                                                                   
                                                                               
  CHAIRMAN VEZEY MOVED passage of SB 90 from committee.                        
                                                                               
  SB 90 PASSED from committee by a 7-0 vote.                                   
                                                                               
  HB 65:  FINANCIAL ADMINISTRATION OF STATE GOVT.                              
                                                                               
  Number 140                                                                   
                                                                               
  CHAIRMAN VEZEY noted CSHB 65 (STA) had been proposed to                      
  replace CSHB 65 (L&C), and invited comment on both versions.                 
                                                                               
  Number 155                                                                   
                                                                               
  DONALD G. STUDY, ACTING DIRECTOR, DIVISION OF LABOR                          
  STANDARDS AND SAFETY, DEPARTMENT OF LABOR (DOL), told the                    
  committee it would be a mistake to delete section 44 of HB
  65, which would allow the DOL to regulate user fees in                       
  accordance with their budget needs.                                          
                                                                               
  Number 170                                                                   
                                                                               
  REPRESENTATIVE ULMER asked if the tentative budget before                    
  the finance committee had been based on the fees being                       
  allowed.                                                                     
                                                                               
  MR. STUDY replied in the affirmative.                                        
                                                                               
  REPRESENTATIVE ULMER then asked what might be the effect on                  
  the DOL if the budget was not accurate, and the fees not                     
  allowed.                                                                     
                                                                               
  Number 178                                                                   
                                                                               
  MR. STUDY alleged the DOL would lose the $93,500 the fees                    
  would have generated, and unless general fund monies were                    
  substituted for those fees, the DOL would have to lay off                    
  workers and cut service levels.  He stated the DOL would                     
  also cut back on travel, and probably see electrical                         
  inspection service cut by at least 25%.                                      
                                                                               
  Number 207                                                                   
                                                                               
  CHAIRMAN VEZEY noted the latest CSHB 65 would cut those                      
  fees, which he advocated, since the increasing fees, he                      
  deemed, constituted a direct tax on the working men and                      
  women of Alaska.  He went on to note later sections of the                   
  bill also deletes regulatory rights for fees by both the                     
  Department of Natural Resources and the DEC.  In both cases,                 
  many of the fees are taken away from regulatory language and                 
  put back into statute.  He also noted the DEC anticipated                    
  getting $750,000 from the fee structure, but in CSHB 65,                     
  that had been greatly reduced.                                               
                                                                               
  Number 262                                                                   
                                                                               
  REPRESENTATIVE GARY DAVIS expressed concern CSHB 65 might be                 
  making too many drastic changes after being submitted in the                 
  budget process.  He stated many of the fee changes had been                  
  mandated by the previous legislature, and he was concerned                   
  about the movement toward more user fees.  While he saw an                   
  opportunity to put the brakes on a direct tax, he did not                    
  see how the departments could carry out their constitutional                 
  duties without the fees, and preferred CSHB 65 (L&C) to                      
  CSHB 65 (STA).                                                               
                                                                               
  Number 315                                                                   
                                                                               
  REPRESENTATIVE BETTYE DAVIS asked if Mr. Study could support                 
  CSHB 65 (STA) if the fees were eliminated.                                   
                                                                               
  MR. STUDY explained the DOL had taken budget cuts in the                     
  previous three years, and he could not support the DOL                       
  without the fees.                                                            
                                                                               
  Number 339                                                                   
                                                                               
  CHAIRMAN VEZEY MOVED ADOPTION of CSHB 65 (STA).                              
                                                                               
  REPRESENTATIVE ULMER opposed CSHB 65 (STA) and favored                       
  CSHB 65 (L&C).  She stated the basic philosophy behind                       
  CSHB 65 (L&C) is that users must eventually pay for the                      
  services they use, or the state will eventually have to                      
  subsidize the service.                                                       
                                                                               
  Number 358                                                                   
                                                                               
  CSHB 65 (STA) was ADOPTED by a 4-3 vote; Representatives                     
  Vezey, Kott, Sanders, and Olberg voting YES; Representatives                 
  Ulmer, B. Davis and G. Davis voting NO.                                      
                                                                               
  Number 362                                                                   
                                                                               
  CHAIRMAN VEZEY MOVED passage of CSHB 65 (STA) from                           
  committee.                                                                   
                                                                               
  Number 383                                                                   
                                                                               
  CSHB 65 (STA) passed from committee by a 7-0 vote.                           
                                                                               
  HB 197:  APPROP: ALYESKA SETTLEMENT                                          
                                                                               
  Number 388                                                                   
                                                                               
  CHAIRMAN VEZEY read the title of HB 197 and invited                          
  Representative Olberg to present his sponsor statement.                      
                                                                               
  Number 391                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG, PRIME SPONSOR OF HB 197,                       
  stated the intent of the bill was to fulfill the "blackmail"                 
  clause in the Alyeska settlement which states the                            
  legislature must appropriate Exxon restoration funds by                      
  September 15th, 1993, or those funds will be turned over to                  
  the State-Federal Exxon Valdez Trustees for disbursement.                    
  He stated allowing that to happen would be a mistake,                        
  because the legislature would only have veto power over any                  
  appropriation, but no input where the money might go.                        
                                                                               
  Number 447                                                                   
                                                                               
  CHAIRMAN VEZEY announced CSHB 197 (STA) was up for                           
  consideration, and opened the floor for more testimony.                      
                                                                               
  Number 458                                                                   
                                                                               
  CRAIG TILLERY, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF                     
  LAW, explained that the funding from HB 197 is part of the                   
  joint settlement between the federal and state governments                   
  and Alyeska, but all monies spent will go to state projects.                 
  He believed it was necessary to pass HB 197 so the                           
  legislature could retain control of the settlement money.                    
                                                                               
  Number 504                                                                   
                                                                               
  CHAIRMAN VEZEY asked if the administration might be usurping                 
  a constitutional legislative duty by mandating an                            
  appropriation of the funds within the settlement agreement.                  
                                                                               
  MR. TILLERY replied it is the right of the Attorney General                  
  to negotiate the settlement of lawsuits by or against the                    
  state, and the settlement provisions were necessary to                       
  settle the case.  He reiterated the administration's                         
  position that the case never would have been settled, and                    
  for the amounts won, had it been taken to court.                             
                                                                               
  Number 538                                                                   
                                                                               
  REPRESENTATIVE OLBERG noted the changes in the proposed CSHB
  197 (STA) involved deleting funds for the Kachemak Bay buy                   
  out.                                                                         
                                                                               
  MR. TILLERY noted the change and said it might be the intent                 
  of the legislature to do the Kachemak Bay appropriation in a                 
  separate bill.  However, he believed it would be simpler to                  
  make the appropriation in HB 197.                                            
                                                                               
  Number 553                                                                   
                                                                               
  CHAIRMAN VEZEY found it personally offensive for the state                   
  to buy land not directly affected by the oil spill with                      
  restoration funds.  He stated other legislators and timber                   
  owners felt the same way, and he did not feel the                            
  legislature should go along with the buy out.                                
                                                                               
  MR. TILLERY replied the buy out had been recommended by the                  
  trustees' council and in many cases, beaches at Kachemak Bay                 
  had been oiled during the spill.  He noted there is concern                  
  about the impact of the oiling of the beaches.                               
                                                                               
  Number 580                                                                   
                                                                               
  REPRESENTATIVE ULMER asked about the rules regarding such                    
  appropriations.                                                              
                                                                               
  MR. TILLERY noted the rules are stated in paragraph eight,                   
  page nine of the settlement agreement, as well as the                        
  appendixes of the agreement.  Under those rules,                             
  appropriations must be made for either restoration of land,                  
  or for spill prevention or reaction.                                         
                                                                               
  Number 606                                                                   
                                                                               
  REPRESENTATIVE ULMER asked what would happen if the                          
  legislature did not appropriate the funds this year.                         
                                                                               
  MR. TILLERY replied the money would go to the trustees                       
  council as of September 15th.                                                
                                                                               
  Number 622                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS inquired about who would have veto                   
  power over the trustees.                                                     
                                                                               
  MR. TILLERY noted the legislature would have veto power over                 
  the trustees.                                                                
                                                                               
  REPRESENTATIVE G. DAVIS then noted his long-time opposition                  
  to the Kachemak Bay buy out, stating it is, in his opinion,                  
  a beautification project.  He stated he and other Kenai                      
  River residents noted an oil spill related impact on the                     
  Kenai, and had been trying for years to get an appropriation                 
  to mitigate that impact, and until he could see the entire                   
  list of Alyeska settlements, he could not support HB 197.                    
                                                                               
  Number 695                                                                   
                                                                               
  REPRESENTATIVE ULMER asked how the four projects mentioned                   
  in HB 197 were decided to be the best use of the money.                      
                                                                               
  TAPE 93-33, SIDE A                                                           
  Number 000                                                                   
                                                                               
  REPRESENTATIVE OLBERG stated the docks and storage                           
  facilities were deemed necessary for spill prevention and                    
  response. He stated the road from Cordova to Shepherd Bay is                 
  necessary because the Bay is the nearest deep water area                     
  near Cordova that can handle ferry-class vessels.  He stated                 
  the rest of the appropriation was a combination of                           
  restoration or response needs.                                               
                                                                               
  MR. TILLERY pointed out the appropriation was made on the                    
  basis of a need for staging facilities, for response areas                   
  for either state or Alyeska response vessels, and for                        
  advanced communications in the event of another spill; all                   
  identified as needs after the Exxon Valdez spill.                            
                                                                               
  Number 081                                                                   
                                                                               
  REPRESENTATIVE ULMER asked if the people in the affected                     
  communities wanted the projects.                                             
                                                                               
  Number 083                                                                   
                                                                               
  REPRESENTATIVE OLBERG stated "very much so", to the point                    
  where many residents were treating the facilities'                           
  construction as a done deal.                                                 
                                                                               
  Number 091                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS asked why the only city to be                        
  directly affected by oil on its beaches, Seward, had not                     
  been addressed in HB 197.                                                    
                                                                               
  REPRESENTATIVE OLBERG stated HB 197 is a simple bill:                        
  Whether or not to make the appropriation of funds.  If not,                  
  then he stated the trustees' council will make the                           
  appropriation for the legislature.  Given the trustees                       
  record, he preferred the legislature.                                        
                                                                               
  Number 143                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS knew HB 197 would see further                        
  revision, and wanted to see it moved.                                        
                                                                               
  Number 160                                                                   
                                                                               
  CHAIRMAN VEZEY MOVED acceptance of CSHB 197 (STA).                           
                                                                               
  CSHB 197 (STA) was ADOPTED 4-3; Representatives Vezey, Kott,                 
  Sanders and G. Davis voting YES; Representatives Olberg,                     
  Ulmer and B. Davis voting NO.                                                
                                                                               
  Number 174                                                                   
                                                                               
  CHAIRMAN VEZEY MOVED passage of CSHB 197 (STA).                              
                                                                               
  CSHB 197 (STA) passed 7-0.                                                   
                                                                               
  HB 59:  APPROP: VETS' LAND DISCOUNT REFUND                                   
                                                                               
  Number 208                                                                   
                                                                               
  CHAIRMAN VEZEY explained the committee members' reservations                 
  for not passing HB 59 from committee.  He detailed the                       
  concerns over whether the University of Alaska had taken                     
  veterans land into foreclosure after taking some payments on                 
  the land, and then being reimbursed for the original amount.                 
  He then called for any additional testimony on HB 59.                        
                                                                               
  Number 235                                                                   
                                                                               
  WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS                        
  explained the University never defaulted on land held by                     
  veterans, and a previous spreadsheet given the committee was                 
  in error.                                                                    
                                                                               
  Number 242                                                                   
                                                                               
  CHAIRMAN VEZEY asked for clarification that the university                   
  never foreclosed on a veteran.                                               
                                                                               
  MS. REDMAN clarified the University had not.                                 
                                                                               
  Number 251                                                                   
                                                                               
  REPRESENTATIVE B. DAVIS MOVED passage of HB 59.                              
                                                                               
  HB 59 PASSED from committee with a 7-0 vote.                                 
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Number 270                                                                   
                                                                               
  CHAIRMAN VEZEY noted the completion of the agenda and                        
  adjourned the meeting at 9:48 a.m.                                           

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