CHAIRMAN ROBIN TAYLOR called the Judiciary Committee meeting to order at 2:41 p.m. He brought CSHB 454(FIN) (APPROP: COST OF OIL/GAS LITIGATION) before the committee as the first order of business. JIM BALDWIN, Assistant Attorney General, Department of Law, explained the legislation is the department's FY 94 supplemental appropriation bill for oil and gas litigation. He noted this has been a recurring event because of the way the Legislature has funded the department's oil and gas special litigation budget request unit. It has been funded on a half-year basis so that the Legislature can, in the middle of the year, review the progress of their litigation and determine whether the course of their expenditures are keeping pace with the estimates that have been presented during the budget process. Mr. Baldwin directed attention to his letter to the committee dated March 18, which outlines cases under litigation. He then updated the committee on the status of royalty cases, oil and gas tax cases, and TAPS cases, and responded to questions from the committee members on those cases. Number 225 SENATOR TAYLOR asked if his interpretation was correct that this is merely a supplemental of approximately $18.5 million, which is just half a year's cost, and the actual cost is $36 million. MR. BALDWIN responded that $36 million is the amount they have asked for FY 95. For FY 94 they have asked for approximately $25 million. He added the department was funded at the rate of 10.3 upfront in the budget, and that money has carried them through about December. Because of the pace of the litigation, which they are preparing for trial, it has forced the department to request the $18.5 million supplemental. Because the litigation will be going into its trial phase next year, they are asking for a substantial increase in FY 95. Number 270 SENATOR DONLEY asked if the expenses for the Department of Law is for state employees or for contracts let out by the department. MR. BALDWIN responded that the most of the money in the supplemental is for contracts to outside attorneys. Within that amount are the costs of expert witnesses and other expenses of the litigation. SENATOR DONLEY then asked what the department has done to comply with the legislative intent that there be increased oversight over the contracts. MR. BALDWIN answered that they added a position in the department last year to provide expertise towards contract administration and management. Number 327 There being no further testimony on HB 454, SENATOR TAYLOR asked for the pleasure of the committee. SENATOR JACKO moved that CSHB 454(FIN) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.