MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
         Second Special Session - Eighteenth Legislature                       
                       September 26, 1994                                      
                            8:15 p.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-94, #95, Side 1 (570-end)                                                
  SFC-94, #95, Side 2 (575-475)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Drue  Pearce,  Co-chair,  convened the  meeting  at                 
  approximately 8:15 p.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  All  committee  members  (Co-chairs, Pearce  and  Frank  and                 
  Senators Jacko,  Kerttula, Kelly,  Rieger,  and Sharp)  were                 
  present.                                                                     
                                                                               
  ALSO ATTENDING:  Attorney General Bruce Botelho; Harry Noah,                 
  Commissioner,  Dept. of  Natural Resources;  Shelby Stastny,                 
  Director,  Office of  Management  and Budget;  David Walker,                 
  attorney for  plaintiffs Weiss  in the  Mental Health  Trust                 
  litigation;  Jim Gottstein,  attorney for the  Alaska Mental                 
  Health Association; Phillip Volland, representing a group of                 
  plaintiffs in support of the Mental Health Trust settlement;                 
  Jeff  Jessee,  senior  attorney  with  Advocacy Services  of                 
  Alaska,   representing   named    beneficiaries   and    the                 
  developmentally  disabled   in  the   Mental  Health   Trust                 
  litigation; Tom  Koester, contract  attorney, Dept.  of Law;                 
  Mike Greany,  Director, Legislative  Finance Division;  Fred                 
  Fisher  and   Susan  (Sorensen)  Taylor,   fiscal  analysts,                 
  Legislative   Finance   Division;  representatives   of  the                 
  administration; and  aides  to committee  members and  other                 
  members of the legislature.                                                  
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
                                                                               
  SB 382    -    MENTAL HEALTH LAND TRUST SETTLEMENT                           
                                                                               
                 The bill was REPORTED OUT of committee with a                 
                 unanimous "do pass"  recommendation and  zero                 
                 fiscal note for all  agencies from the Office                 
                 of  Management  and  Budget.    (See  lengthy                 
                 teleconference discussion during  Joint House                 
                 and Senate Finance Committee meeting of  this                 
                 date.)                                                        
                                                                               
  SB 383    -    AMENDMENTS TO MENTAL HEALTH TRUST APPROPS                     
                                                                               
                                                                               
                 The appropriation  bill was  REPORTED OUT  of                 
                 committee   with   a   unanimous  "do   pass"                 
                 recommendation.  (See  lengthy teleconference                 
                 discussion  during  Joint  House  and  Senate                 
                 Finance Committee meeting of this date.)                      
                                                                               
                                                                               
  SENATE BILL NO. 382                                                          
                                                                               
       An Act  relating to the  mental health land  trust, the                 
       mental  health trust  income  account,  and the  mental                 
       health   land   trust  litigation,   Weiss   v.  State,                 
       4FA-82-2208 Civil, and  amending ch. 66, SLA  1991, and                 
       ch. 5, FSSLA  1994 relating to the  trust, the account,                 
       and the  litigation;  and providing  for  an  effective                 
       date.                                                                   
                                                                               
                                                                               
  SENATE BILL NO. 383                                                          
                                                                               
       An  Act making and  amending appropriations relating to                 
       the mental health  trust fund, the mental  health trust                 
       income account, and the mental health trust  settlement                 
       income account; and providing for an effective date.                    
                                                                               
  (NOTE:   See  minutes  of Joint  House  and  Senate  Finance                 
  Committee meeting  of this  date for lengthy  teleconference                 
  discussion of mental health trust legislation.)                              
                                                                               
  Upon convening  the meeting, Co-chair  Pearce announced that                 
  SB 382 and  SB 383 were simultaneously  before committee for                 
  discussion and action.   She referenced the letter  from the                 
  Governor and zero fiscal note accompanying SB 382 and called                 
  for discussion.  None was forthcoming.                                       
                                                                               
  Senator Kerttula MOVED that SB  382 pass from committee with                 
  individual  recommendations.   Co-chair  Frank advised  that                 
  lengthy discussion of the legislation during the immediately                 
  preceding Joint House  and Senate Finance  Committee meeting                 
  dispensed with most  of his questions.   He then said  that,                 
  having read Judge  Greene's decision, he was  satisfied that                 
  the proposed legislation addresses concerns, and  passage at                 
  this  time  is  appropriate.    Co-chair Pearce  called  for                 
  objections to the  motion for passage with  the accompanying                 
  fiscal note.   No objection having  been raised, SB 382  was                 
  REPORTED  OUT  of  committee  with  a  unanimous  "do  pass"                 
  recommendation and zero  fiscal note  for all agencies  from                 
  the Office of Management and Budget.                                         
                                                                               
  Senator Kerttula MOVED for passage of SB 383 with individual                 
  recommendations.  Co-chair Pearce called for objections.  No                 
  objection having  been raised,  SB 383 was  REPORTED OUT  of                 
                                                                               
                                                                               
  committee with a unanimous "do pass" recommendation.                         
                                                                               
  End:      SFC-94, #95, Side 1                                                
  Begin:    SFC-94, #95, Side 2                                                
                                                                               
  Co-chair    Pearce    thanked    representatives   of    the                 
  administration and attorneys  for plaintiffs  in the  mental                 
  health   trust   litigation   for   their   assistance   and                 
  responsiveness to questions  and concerns.   She noted  that                 
  that  cooperation enabled  the legislature  to "take  action                 
  very quickly" during this second special session.                            
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 8:20 p.m.