MINUTES SENATE FINANCE COMMITTEE 23 March 1998 10:25 a.m. TAPES SFC-98, #91, Side A CALL TO ORDER Senator Drue Pearce, Co-chair, convened the meeting at approximately 10:25 a.m. PRESENT In addition to Co-chair Pearce, Senators Sharp, Donley, Torgerson and Parnell were present when the meeting was convened. Senator Phillips arrived later. Also Attending: BARBARA RITCHIE, Deputy Attorney General, Civil Division, Department of Law; SUSAN TAYLOR, Fiscal Analyst, Division of Legislative Finance; aides to committee members and other members of the Legislature. Via Teleconference: Teleconference was "listen only". SUMMARY INFORMATION HOUSE BILL NO. 461 "An Act making supplemental and special appropriations; and providing for an effective date." CS FOR HOUSE BILL NO. 461(FIN) "An Act making supplemental and special appropriations and amending appropriations; and providing for an effective date." Co-chair Pearce introduced CSHB 461(FIN) now before the committee, the fast track supplemental. She asked the Department of Law to join the committee and present an overview on their request for an addition. There did not need to be another public hearing because everything had been heard regarding this bill. If there were any questions by members of the committee to a specific department she would allow time for that. Her intent was to entertain any amendments this morning and then order a Senate Finance CS. If a new CS were back by the afternoon meeting time she would like to move it out of committee. She noted the Department of Corrections fix, also the National Guard challenge program and Leasing were becoming major problems unless the bill was moved. She then advised that Ms. Ritchie from the Department of Law would appear before the committee but if there were any specific questions regarding her presentation it would be necessary to go into Executive Session. And she noted for the committee that Ms. Ritchie would advise them at what point she could no longer answer questions publicly and request an Executive Session. There was also a document in the file marked "confidential" and no questions should be asked in public pertaining to this matter. BARBARA RITCHIE, Deputy Attorney General, Civil Division, Department of Law was invited to join the committee. She said the total figure of the request was $199,500. It was a proposal to retain outside counsel to handle the constitutional challenge to the tort reform litigation. This lawsuit was served on the State, 23 February, and the Answer is due on or about 6 April. She explained they wanted one of the lawyers in the Special Litigation Section in Anchorage to co-counsel the litigation with outside counsel. They would monitor the matter closely and be involved. The requested funds would specifically pay for outside counsel. She explained the litigation itself was handed out to members in a Complaint document. In reality it is a comprehensive challenge to the tort reform litigation that was passed last year. It was being presented in this matter as a challenge to numerous of the specific sections and then an allegation that those sections cannot be severed from the balance of the legislation. Therefore, if those were struck down on the bases that are claimed in this litigation, the whole bill would fall. She recommended at this point the committee to into Executive Session if they wanted to discuss the specific budget request. She said if further detail was needed on the litigation itself, Gail Voigtlander, Assistant Attorney General, Special Litigation Section was available to the committee. Co-chair Pearce asked what the dollar amount of the request was and Ms. Ritchie advised that it was $199,500. Senator Donley asked if there would be an Executive Session regarding this matter. Co-chair Pearce said Executive Session would be called if there were any questions pertaining to this matter and asked Senator Donley if he wanted to move for such. Senator Donley said he never cared for Executive Sessions and therefore did offer any motion. A recess was denied by the Co-chair in order to question the witness. Senator Sharp MOVED amendment #1, a new section to CSHB 461(FIN) in the amount of $199,500 for the defense of the tort reform act. WITHOUT OBJECTION it was ADOPTED and Co- chair Pearce said the amendment would be added to a Senate Finance CS for HB 461. Senator Torgerson moved amendment #5, page two of CSHB 461(FIN), lines eleven through thirteen be deleted. He explained this was eight and a half million dollar highway project between Glennallen and Tok. By way of explanation he said this item should be looked at under the STIP. Senator Sharp confirmed that this amendment would only delete section (f) on page two. Senator Torgerson concurred. A vote by hand showed five yeas (Parnell, Torgerson, Donley, Sharp, Pearce) and no nays (Senators Adams and Phillips were absent) and the amendment was ADOPTED. Senator Sharp MOVED amendment #2, saying the contents of this amendment were discussed by the division director during the Fish and Game overview. Basically it was a shifting of Federal funds to State Fish and Game funds on a Fairbanks indoor shooting range. Co-chair Pearce said section eight (c) was the language taken from SB 292. WITHOUT OBJECTION it was ADOPTED and rolled into the new HB 461. Senator Parnell MOVED amendment #3, saying the unexpended and unobligated balance of the appropriation made last year for Perseverance Trail be reappropriated to the Department of Natural Resources for equipment repair in the amount of $4,000 and the Department of Public Safety for batterers programs in the amount of $116,000. Volunteer workers repaired the Perseverance Trail last year. WITHOUT OBJECTION it was ADOPTED. Co-chair Pearce reviewed the afternoon schedule at 4:30 and said the new CS could be taken up then or also in the morning. She further advised the committee that HB 53 would be brought up on the morrow's afternoon calendar in place of the scheduled work session. Co-chair Pearce said that the Department of Law needed a FY '99 lapse date on amendment Senator Sharp MOVED the committee's action on amendment #1 be rescinded and WITHOUT OBJECTION it was RESCINDED. The amendment now being again before the committee, Senator Sharp MOVED amended amendment #1 to include that any unexpended funds shall lapse as of 30 June 1999. WITHOUT OBJECTION it was ADOPTED. Senator Sharp announced tomorrow morning schedule. He noted that SB 334 would be number four on the calendar and SJR 42 would be number five. He did not know if the committee would get through the whole calendar in the time allotted. ADJOURNMENT Co-chair Pearce recessed the meeting until 4:30 p.m. SFC-98 -4- 3/23/98