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.