Number 326 VICE CHAIR HUDSON, who chaired the subcommittee, reported that he had worked with Representatives James, Davies and Carney, as well as others who were not members of the subcommittee. It was the subcommittee's recommendation that the House Resources Committee sponsor and introduce a bill identical to SB 67 with one exception. He said the subcommittee was unable to identify the justification for the six percent revenue stream called for in SB 67, and instead recommended a three percent amount. VICE CHAIR HUDSON said the subcommittee recognized the percentage would be open to debate among all concerned groups. He referred to the report of the subcommittee in members' files, which identified various alternatives, including a lease-back program. He said the problem with that alternative was the same as the state faced with the land exchange solution. Another option was a cash pay-off, which was not recommended because of the cost. Number 360 VICE CHAIR HUDSON noted since SB 67 was a known commodity, the various parties who wanted to see the issue settled might find this proposed legislation to be a possible solution. He noted while SB 67 has not won the enthusiastic support of the Attorney General, it has not been rejected either. Regarding the anticipated revenues based on the six percent versus three percent figures, Vice Chair Hudson said that based on FY 94 unrestricted revenues, six percent would equal approximately $140 million and three percent would be $70 million. Number 412 REPRESENTATIVE JAMES commented on the concerns the subcommittee faced. First was the issue of the courts. Even if the legislature passed a bill, she said there would be no guarantee that the courts would accept it as a settlement. She preferred a document more closely related to the court order already in existence. The problem has been on the failure of the parties to agree on how much to pay, she stated. Regarding the reconstitution of the trust, she does not believe the land exchanges would ever come to fruition. REPRESENTATIVE JAMES said she would like to see an actual dollar amount in capital and operating expenditures that the state has paid for its mental health programs since 1978 until 1992. She said this amount should be incorporated into the purchase price for the lands that could not be given to the parties to the settlement. Number 437 REPRESENTATIVE JAMES referred to SB 67, and said it was her understanding that in order to guarantee the revenue stream, the state has to give the plaintiffs a secured interest in the Legislatively Designated Areas (LDAs). If the plaintiffs did not want the LDAs, then giving them those lands would not work. She suggested giving them those lands now and paying rent on them. Number 452 REPRESENTATIVE PAT CARNEY commented that there would be plenty of opportunity once a house bill was introduced for Representative James' concerns to be addressed and debated. Number 458 REPRESENTATIVE GREEN concurred, adding that he has heard at least one of the attorneys of the non-settling plaintiffs indicated he was amenable to the solution posed by the proposed legislation. He stressed a settlement should be reached quickly, because potential users of the land were being lost as long as the land was tied up in litigation. Number 476 REPRESENTATIVE JAMES was not opposed to getting some piece of legislation on the table. Number 478 VICE CHAIR HUDSON noted the lease-back situation had been discussed in subcommittee, and the option could be discussed and public testimony taken once a bill was before the committee. He recommended the committee submit for introduction the February 26, 1993 Chenoweth draft, with the House Resources Committee as sponsor. CHAIRMAN WILLIAMS noted there should be a motion on the table for the committee to sponsor the draft legislation. Number 495 REPRESENTATIVE JAMES MOVED that the House Resources Committee sponsor the draft legislation as a house bill. Number 500 CHAIRMAN WILLIAMS asked if there were any objection to the motion, Without objection, the MOTION PASSED. ANNOUNCEMENTS CHAIRMAN WILLIAMS announced the House Resources Committee would next meet on Monday, March 8, and Wednesday, March 10, 1993, at 8:00 a.m., to hear testimony on the confirmation of appointees to the Board of Fisheries and the Board of Game. He noted there was a legal question pending on the nomination of one game board member, and requested committee members read the legal opinion on the issue that was distributed to them. ADJOURNMENT There being no further business to come before the House Resources Committee, Chairman Williams adjourned the meeting at 9:21 a.m.