04/26/1996 02:00 PM Senate FIN

                                                                               
       SENATE BILL NO. 180                                                     
       "An Act  authorizing the commissioner of the Department                 
  of   Natural  Resources to negotiate  and enter  into timber                 
  sale      contracts that  provide for  local manufacture  of                 
  high      value-added  wood  products;  and establishing  an                 
  Alaska Forest  Products  Research   and  Marketing   Program                 
  within the Department    of     Commerce     and    Economic                 
  Development."                                                                
                                                                               
  Co-chairman Halford  indicated there  was a  Finance CS  and                 
  noted  the  primary  difference  was  that  it  changed  the                 
  Resources CS in  that "the commissioner by  regulation would                 
  set a maximum number of contracts but not less than two" and                 
  the number "two" was changed to "not less than three" and it                 
  takes some out  of the language on  area plans.  He  said he                 
  was  concerned about  when the  legislature  authorized some                 
  things and  then a series  of plan  requirements the  fiscal                 
  notes  were  added to  with the  very  thing that  was being                 
  authorized.    Senator  Rieger  commented  on the  bill,  AS                 
  38.05.115 and AS 38.05.120.                                                  
                                                                               
  Mr.  Tom  Boutin  was  invited  to  join  the  committee and                 
  explained AS 38.05.115  and said that it  limited negotiated                 
  sales to  500,000 feet  and one  year.   Co-chairman Halford                 
  commented on the up-dated forest land  use plan and conflict                 
  with forest  use plan  is deleted.   He  also indicated  the                 
  number "two" being changed to "three".  The language remains                 
                                                                               
                                                                               
  permissive but it takes out things that could be fiscal note                 
  generators.  Mr. Boutin advised the  reason there was an up-                 
  date of the forest land use plan in the bill is  that forest                 
  use land plans become stale after about five years.                          
                                                                               
  Senator  Frank moved  work draft  CSSB 180(FIN)  and it  was                 
  adopted.    Senator Frank  moved  CSSB 180(FIN)  and without                 
  objection   it    was   reported    out   with    individual                 
  recommendations and zero fiscal note  from the University of                 
  Alaska and Department of Community  and Regional Affairs and                 
  $26.5 from Department of Natural Resources.