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 1 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 3 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. 5