Legislature(1993 - 1994)
03/23/1993 08:00 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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.
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