04/17/1996 08:04 AM House RES

 SJR 37 - PRIMARY MFG OF PUBLICLY OWNED TIMBER                               
                                                                               
 Number 2414                                                                   
                                                                               
 CO-CHAIRMAN WILLIAMS accepted the gavel from Co-Chairman Green and            
 announced his intent to move SJR 37 from committee today.                     
                                                                               
 Number 2425                                                                   
                                                                               
 SENATOR JOHN TORGERSON introduced SJR 37 stating that its purpose             
 asks Alaska's Congressional delegation to exempt Alaska from the              
 commerce clause which prohibits primary manufacture in the state on           
 publicly owned timber.                                                        
                                                                               
 SENATOR TORGERSON said, "In 1990, Congress did adopt the Forest               
 Resources Conservation and Shortage Relief Act, which gave 11 of              
 our western states the exemption from the Commerce Clause, but for            
 whatever reason, Alaska was not included in that piece of                     
 legislation."                                                                 
                                                                               
 SENATOR TORGERSON explained, "The spinoff of this is, Mr. Chairman            
 that's happened in my district, the state has just recently sold a            
 timber sale there which was purchased by an outfit from Oregon.  We           
 also had a sawmill that was shut down recently because of lack of             
 resource coming out of both the state and the Chugach National                
 Forests  We lost 140 jobs because of that and the consequences are            
 with this company from ... (CHANGE TAPE)                                      
                                                                               
 TAPE 96-57, SIDE B                                                            
 Number 001                                                                    
                                                                               
 SENATOR TORGERSON ... "should have been directed toward, or at                
 least, the opportunity of having it go toward the mill for primary            
 manufacture."                                                                 
                                                                               
 SENATOR TORGERSON stated, "In 1984, Mr. Chairman, the Supreme Court           
 -- we used to have a primary manufacture law and the Supreme Court            
 struck that down as being unconstitutional because of this commerce           
 clause.  We also know that there are pieces of legislation pending            
 before Congress, amendments to the budget bill, etc., that would              
 grant this relief from the commerce clause as it reflects to state            
 owned timber.  This resolution asks for the inclusion of municipal            
 lands and also the University of Alaska lands."                               
                                                                               
 SENATOR TORGERSON said, "The three key words in this piece of                 
 legislation are regulate, restrict or prohibit.  It doesn't                   
 actually ask for the straight prohibition, it is asking that the              
 state of Alaska have the leeway in the municipality or the                    
 university to do one of the three.  It could be that they would go            
 ahead and export some or regulate it somehow or restrict it or                
 whatever."                                                                    
                                                                               
 Number 053                                                                    
                                                                               
 REPRESENTATIVE DAVIES asked why it took us so long to get to this             
 point.  He said he couldn't support this more strongly.                       
                                                                               
 Number 061                                                                    
                                                                               
 SENATOR TORGERSON related that his office had been surprised to               
 find this issue had never been addressed before, through a                    
 resolution.                                                                   
                                                                               
 RON LONG, Seward Port and Commerce Advisory Board, testified from             
 Seward that the organization strongly supports SJR 37.  He said,              
 "The exemption that was granted may have made sense at that time              
 but we feel, at this time, that it no longer does.  We should have            
 a policy that conforms with the rest of the western states, and we            
 ask the House to go along with the Senate in asking our                       
 Congressional delegation to support this."                                    
                                                                               
 Number 124                                                                    
                                                                               
 ANTHONY CRUPI, Volunteer, Alaska Environmental Lobby, appreciated             
 the opportunity to testify.  He said, "The Alaska Environmental               
 Lobby strongly supports Senator Torgerson's resolution.  When                 
 timber is harvested on state lands, it makes sense to maximize the            
 number of jobs from each tree cut.  Exporting logs in the round               
 sends jobs out of our state and hurts the future of sustainable               
 timber industry in Alaska.  We strongly support this.  We                     
 respectfully ask one minor addition.  In addition to the state                
 lands, municipal lands and University of Alaska lands, we would               
 like to see `other trust lands' included in this resolution.  We              
 hope this resolution is passed in a timely manner, and we urge                
 Alaska's Congressional delegation to assist in passing appropriate            
 legislation in Congress."                                                     
                                                                               
 REPRESENTATIVE DAVIES moved that SJR 37 move from the House                   
 Resources Committee with individual recommendations.  Hearing no              
 objection, it was so ordered.