04/28/1993 02:55 PM Senate FIN

                                                                               
  SENATE BILL NO. 183                                                          
                                                                               
       An  Act making  special appropriations  for restoration                 
       projects relating to the Exxon Valdez oil spill and for                 
       oil  spill  response  projects;  and  providing  for an                 
       effective date.                                                         
                                                                               
  Co-chair  Pearce directed  that  SB 183  be  brought on  for                 
  discussion  and noted a  number of amendments  for the bill.                 
  Co-chair Frank MOVED  for adoption of  Amendment No. 1.   No                 
  objection having been raised, Amendment No. 1 was ADOPTED.                   
                                                                               
  Senator Kelly MOVED for adoption of Revised Amendment No. 2.                 
  He explained  that it would  ensure that no  construction at                 
  the Alaska Sea Life Center  commences until all financing is                 
  in place.  He noted that  identical language recently passed                 
  the  House.    No  objection  having  been  raised,  Revised                 
  Amendment No. 2 was ADOPTED.                                                 
                                                                               
  Co-chair Pearce directed  attention to  Amendment No. 3  and                 
  noted that  it was requested by  the Dept. of  Law.  Senator                 
  Rieger MOVED  for adoption.  Co-chair Pearce  asked that the                 
  Attorney  General  speak  to  the  request.   CHARLIE  COLE,                 
  Attorney General, Dept.  of Law, came before  committee.  He                 
  explained that "substantial, ongoing" is superfluous at page                 
  5,  line 12, and should be deleted therefrom.  The change is                 
  technical  rather  than substantive.    No objection  to the                 
                                                                               
                                                                               
  motion for adoption having been raised.  Amendment No. 3 was                 
  ADOPTED.                                                                     
                                                                               
  Co-chair Pearce directed attention to Amendment No. 4.   Co-                 
  chair Frank advised that it was no longer necessary in light                 
  of  adoption  of  Amendment  No.  1.   He  then  voiced  his                 
  assumption that under  language as changed by  Amendment No.                 
  1, the  state would not  be prohibited  or constrained  from                 
  awarding  competitive contracts to  either private or public                 
  entities.                                                                    
                                                                               
  Co-chair Pearce next  directed attention to Amendment  No. 5                 
  and  noted the  request to add  "and related  facilities" to                 
  language relating to  the Kachemak  Bay State Park  visitors                 
  center.   Attorney General  Charlie Cole  spoke to  requests                 
  from residents of the Homer area  that the above language be                 
  included.  He stressed need for  ability to apply funding to                 
  methods of  access to  and from the  park, dock  facilities,                 
  maintenance,  staffing,  etc.     Co-chair  Frank  expressed                 
  concern  that funding  might be  spent on  trails and  other                 
  facilities and no visitor center  would be built.   Attorney                 
  General Cole voiced his understanding that development would                 
  focus on the center.  Senator  Sharp referenced an April 15,                 
  1993, memorandum  from the department listing  six different                 
  items of expenditure for the funding.   Senator Rieger MOVED                 
  for adoption of Amendment  No. 5.  No objection  having been                 
  raised,  Amendment  No.  5  was  ADOPTED.   Co-chair  Pearce                 
  subsequently  raised  questions  concerning  the  $500.0  in                 
  projects set forth on the  above-referenced memorandum.  She                 
  then  asked if the  park system  intends to  undertake those                 
  projects rather than a visitor center.  The Attorney General                 
  advised  that  the  Governor  strongly  favors  the  visitor                 
  center.  Addition  of "and related facilities"  is not meant                 
  to incorporate the  views expressed  in the DNR  memorandum.                 
  Mr. Cole  reiterated that the  central focus is  the visitor                 
  center.   Co-chair  Pearce asked  who  would decide  how the                 
  $500.0  is spent.  The  Attorney General said the department                 
  would  be  asked to  sketch out  a  plan of  development for                 
  approval  by the Governor.   Senator  Sharp remarked  on the                 
  existence of property  in-holders in  the area and  stressed                 
  that the  $500.0 should not  develop amenities "next  to the                 
  in-holders' property."  Mr. Cole concurred.                                  
                                                                               
  Co-chair Pearce directed attention to Amendment No. 6  a n d                 
  noted that it was requested by Commissioner Rosier, Dept. of                 
  Fish and Game.   She then asked why it was  necessary to add                 
  "habitat"   to   restoration   projects   under   department                 
  jurisdiction.    Attorney General  Cole  explained that  the                 
  addition would clarify  the purpose.   It is designed to  be                 
  limiting in response to concerns  that "restoration" was too                 
  broad and unqualified.  Senator  Kelly MOVED for adoption of                 
  Amendment No. 6.  No objection having been raised, Amendment                 
  No. 6 was ADOPTED.                                                           
                                                                               
                                                                               
  Senator Rieger MOVED  for adoption of  Amendment No. 7.   He                 
  explained  that  he  had  received  backup  from  sport  and                 
  commercial fishermen in upper Cook Inlet indicating that not                 
  enough is known about the production capacity of the Susitna                 
  River and  its drainage.   The $150.0 study  should commence                 
  the informational effort.  No  objection having been raised,                 
  Amendment No. 7 was ADOPTED.                                                 
                                                                               
  Co-chair  Pearce  referenced  language  at  pages  4  and  5                 
  providing $5 million for  an oil spill response ferry.   She                 
  said that the House struck that language from its version of                 
  the  legislation  and  instead  funded  the ferry  from  the                 
  mitigation  account.   She  then  queried members  regarding                 
  retention in  the Senate  bill.   Senator  Kelly voiced  his                 
  belief  that  the  ferry  would  ultimately cost  more  than                 
  estimated.  He then  said he had no objection to leaving the                 
  funding in place.                                                            
                                                                               
  Senator Rieger directed  attention to page  5, line 13,  and                 
  inquired  concerning  the lapse  date  of December  1, 1994.                 
  Attorney General Cole said that the administration requested                 
  that  the  date  be  changed  to  December 1,  1999.    That                 
  amendment was adopted by the House.   Senator Rieger advised                 
  that he would  support extension of the  date but questioned                 
  whether it should  extend to 1999.  He  then MOVED to change                 
  the lapse date stated at page  5, line 13, and page 5,  line                 
  16, from December  1, 1994, to  December 1, 1997.   Co-chair                 
  Pearce  called  for objections  to  Amendment  No.  8.    No                 
  objection having been  raised, Amendment No. 8  was ADOPTED,                 
  and the lapse date was changed to December 1, 1997.                          
                                                                               
  Co-chair Pearce queried members on  disposition of the bill.                 
  Senator  Kelly  MOVED  that  CSSB  183 (Finance)  pass  from                 
  committee  with  individual recommendations.    No objection                 
  having  been raised, CSSB 183 (Finance)  was REPORTED OUT of                 
  committee.  Co-chairs  Pearce and Frank and  Senators Kelly,                 
  Rieger, and  Sharp signed  the committee  report with a  "do                 
  pass"  recommendation.   Senator Kerttula  signed "no  rec."                 
  Senator Jacko was absent and did not sign.                                   
                                                                               
  Attorney General  Cole commented on  publications indicating                 
  that he  was embarrassed by the bill.   He said that was not                 
  the case, and  he voiced  support for the  legislation.   He                 
  acknowledged  that  he  was  not  present  when  all of  the                 
  projects were formulated, but again voiced his support.                      
                                                                               
  RECESS                                                                       
                                                                               
  Co-chair  Pearce  directed  that  the meeting  be  recessed,                 
  subject to a call of the Chair.  The meeting was recessed at                 
  approximately 4:15 p.m.