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.