Legislature(1999 - 2000)

04/28/1999 03:15 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                    SENATE RESOURCES COMMITTEE                                                                                
                          April 28, 1999                                                                                        
                             3:15 p.m.                                                                                          
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                              
Senator Rick Halford, Chairman                                                                                                  
Senator Pete Kelly                                                                                                              
Senator Jerry Mackie                                                                                                            
Senator Lyda Green                                                                                                              
Senator Georgianna Lincoln                                                                                                      
                                                                                                                              
MEMBERS ABSENT                                                                                                                
                                                                                                                              
Senator Robin Taylor, Vice Chairman                                                                                             
Senator Sean Parnell                                                                                                            
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
SENATE JOINT RESOLUTION NO. 18                                                                                                  
Requesting  Exxon Corporation  to  pay claimants  for court-ordered                                                             
damages resulting from the Exxon Valdez oil spill.                                                                              
                                                                                                                                
     -HEARD AND HELD                                                                                                            
                                                                                                                              
PREVIOUS SENATE COMMITTEE ACTION                                                                                              
                                                                                                                              
SJR 18 - See Judiciary Committee minutes dated 4-7-99.                                                                          
                                                                                                                              
ACTION NARRATIVE                                                                                                              
                                                                                                                              
TAPE 99-28, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                              
                 SJR 18-EXXON VALDEZ DAMAGE CLAIMS                                                                          
                                                                                                                              
CHAIRMAN HALFORD  called the Senate  Resources Committee  meeting to                                                            
order at 3:15 p.m. and  announced SJR 18 to be up for consideration.                                                            
                                                                                                                                
SENATOR LINCOLN, sponsor  of SJR 18, said she purposely asked people                                                            
not  to testify,  although  a  number  of  people  wanted  to.   She                                                            
sponsored  SJR 18  to help  bring closure  to the  Exxon Valdez  oil                                                            
spill at the request of  a lot of people.  The oil spill happened 10                                                            
years  ago and  no one  expected it  to be  of this  magnitude.   On                                                            
September  16, 1994 the Alaska  jury in the  federal district  court                                                            
awarded $5 billion  in punitive damages.  Since that  time there has                                                            
been appeal after  appeal with 40,000 claimants waiting  for payment                                                            
from the settlement;  400 have since  died.  The claimants  have not                                                            
seen a penny from the judgment.                                                                                                 
                                                                                                                                
CHAIRMAN HALFORD said he  understands that Exxon paid all the damage                                                            
claims that  were based on actual  damage that occurred,  but it has                                                            
not paid punitive damages.                                                                                                      
                                                                                                                                
Number 107                                                                                                                      
                                                                                                                                
SENATOR GREEN  commented that we all  have the right to appeal  to a                                                            
higher court  and since Exxon  is in the midst  of that, this  seems                                                            
premature or inappropriate.                                                                                                     
                                                                                                                                
SENATOR LINCOLN  said Exxon  is a company  with billions of  dollars                                                            
and resources  and can carry  the appeals  process on for years  and                                                            
years and years,  which it is doing.   We are not judging  Exxon, we                                                            
are urging  them to pay the  claims for the  punitive damage.   Very                                                            
early on  Exxon said  it would "make  Alaskans  whole."  The  judges                                                            
have decided in favor of the claimants over and over again.                                                                     
                                                                                                                                
Number 154                                                                                                                      
                                                                                                                                
SENATOR KELLY said he thought  "making whole" was the portion of the                                                            
suit that  pertains to economic  damages.   Punitive damages  do not                                                            
make the claimants whole, they pay back society.                                                                                
                                                                                                                                
SENATOR LINCOLN said she didn't think people would say that.                                                                    
                                                                                                                                
SENATOR KELLY said, legally  speaking, punitive damages are separate                                                            
from economic damages.                                                                                                          
                                                                                                                                
SENATOR GREEN said that punitive is the punishment part.                                                                        
                                                                                                                                
SENATOR MACKIE  said he agrees with some of what is  being said, but                                                            
he is looking  at the letter sent  to Exxon Corp. from 39  of the 50                                                            
attorneys general  in the country.   In addition, the court  awarded                                                            
punitive  damages to  40,000  people and  determined  how much  they                                                            
should get.  The injured  parties include Alaska Natives, fishermen,                                                            
small  business  people, landowners,  local  governments  and  other                                                            
entities wounded  by the spill.  If  it was a punishment,  the court                                                            
did award it to  the injured parties.  He thought  the resolution is                                                            
a good position  to take on behalf  of the people.  It doesn't  deny                                                            
access to courts  or rights or anything  like that.  He said  he has                                                            
received  more calls on SJR  18 from affected  constituents  than on                                                            
any other issue.                                                                                                                
                                                                                                                                
Number 252                                                                                                                      
SENATOR HALFORD  said his concern is that this case  may be heard on                                                            
May 3 before  the Ninth Circuit Court  of Appeals, therefore  it may                                                            
not  be  appropriate  to  address  the  issue  at  this  time.    He                                                            
understands  there is a substantial  debate about what the  jury and                                                            
court did and did not do that affected the jury.                                                                                
                                                                                                                                
SENATOR LINCOLN  responded that she  hoped SJR 18 would go  straight                                                            
to the floor but it will be heard in the Rules Committee.                                                                       
                                                                                                                                
SENATOR KELLY  asked Senator Lincoln  if she ever considered  asking                                                            
the Katie John people to give up their appeal.                                                                                  
                                                                                                                                
SENATOR LINCOLN  said he could put a resolution forth  to do that if                                                            
he wanted.                                                                                                                      
                                                                                                                                
CHAIRMAN HALFORD indicated  that he would probably support SJR 18 if                                                            
it pertained  to actual  damages.  However,  two newspaper  articles                                                            
maintain that a substantive  argument about what happened exists and                                                            
he does not wish to second  guess the conclusion of that argument at                                                            
this time.                                                                                                                      
                                                                                                                                
Number 314                                                                                                                      
                                                                                                                                
SENATOR MACKIE  said he is a firm believer in the  judicial process,                                                            
but SJR  18 would send a  message that we  are interested in  seeing                                                            
the case  resolved.  He  didn't think Exxon  would just abandon  the                                                            
case.   He suggested  holding SJR  18 in the  Rules Committee  until                                                            
after May 3.                                                                                                                    
                                                                                                                                
SENATOR KELLY  said maybe it isn't a bad idea to hold  SJR 18 in the                                                            
Rules Committee to see what happens after May 3.                                                                                
                                                                                                                                
CHAIRMAN  HALFORD noted the  argument will be  heard on May  3 but a                                                            
decision is not likely to be made at that time.                                                                                 
                                                                                                                                
SENATOR GREEN  maintained that it  is bad form for the Senate  to be                                                            
sending out a message that pertains to a case on appeal.                                                                        
                                                                                                                                
SENATOR  LINCOLN said  SJR 18  has received  a lot  of support  from                                                            
constituents,  and that it  wouldn't hurt to  send a message  to the                                                            
people by passing SJR 18 to the Rules Committee.                                                                                
                                                                                                                                
SENATOR MACKIE concurred  with that saying this is a huge issue with                                                            
his  constituents  that  should  have  an  opportunity  for  further                                                            
review.                                                                                                                         
                                                                                                                                
SENATOR MACKIE  moved to pass SJR 18 from committee  with individual                                                            
recommendations.  SENATOR GREEN objected.                                                                                       
SENATOR KELLY  said he would  vote to keep  it in committee,  but he                                                            
wanted it on the front burner.                                                                                                  
                                                                                                                                
CHAIRMAN  HALFORD agreed  and said  if the court  system  determines                                                            
that the argument  made about what happened with the  jury is wrong,                                                            
the judgment  should stand and the  legislature should be  out there                                                            
helping people get their money.                                                                                                 
                                                                                                                                
SENATOR  MACKIE  said  he  has  cooperated  to  move  bills  out  of                                                            
committee that  he didn't feel warm and fuzzy about  and that SJR 18                                                            
is important to  him.  He cautioned that he was going  to stop being                                                            
reasonable if it didn't move out of committee.                                                                                  
                                                                                                                                
CHAIRMAN HALFORD  said if Senator Lincoln can get  a majority of the                                                            
committee to support moving it, SJR 18 will be rescheduled.                                                                     
                                                                                                                                
SENATOR KELLY  stated that he does  not believe the Rules  Committee                                                            
will take  action  on the bill  before May  3 therefore  he will  be                                                            
voting to move it from committee.                                                                                               
                                                                                                                                
CHAIRMAN  HALFORD  asked those  in  favor of  moving  the bill  from                                                            
committee  at this  time to  raise their  hands.   SENATORS  MACKIE,                                                            
LINCOLN,  and  KELLY  indicated  yes;  CHAIRMAN  HALFORD  and  GREEN                                                            
indicated no.  CHAIRMAN  HALFORD noted that four votes are necessary                                                            
to pass the bill  from a seven-member committee, therefore  the bill                                                            
failed to move by a vote of 3 to 2.                                                                                             
                                                                                                                                
CHAIRMAN HALFORD adjourned the meeting at 4:40 p.m.                                                                             

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