Legislature(1993 - 1994)
05/05/1994 01:30 PM House FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 5, 1994
1:30 P.M.
TAPE HFC 94 - 159, Side 1, #000 - end.
TAPE HFC 94 - 159, Side 2, #000 - end.
TAPE HFC 94 - 160, Side 1, #000 - end.
TAPE HFC 94 - 160, Side 2, #000 - end.
TAPE HFC 94 - 161, Side 1, #000 - #87.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:30 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Representative David Finkelstein; Representative Bill
Williams; McKie Campbell, Deputy Commissioner, Department of
Fish and Game; Frank Rue, Director, Habitat & Restoration
Division, Department of Fish and Game; Wayne Regelin, Deputy
Director, Wildlife Conservation, Department of Fish and
Game; Donald Stolworthy, Director, Charitable Gaming
Division, Department of Revenue; Chris Gates, Director,
Division of Economic Development, Department of Commerce and
Economic Development; Jerry Rheinwald, Self, Juneau; Tom
Dow, Vice President, Princess Tours, Anchorage; Kate Troll,
United Fishermen of Alaska (UFA), Juneau; Katya Kirsch,
Alaska Environmental Lobby, Juneau; Rex Blazer, Self,
Fairbanks; Ron Wolf, Chief Forester, Kluckwan Forest
Products; Audrey Magoen, Self, Fairbanks; Barbara Kelly,
Self, Juneau; Toby Wheeler, Self, Juneau; Bob Poe, Director,
Division of Administrative Services, Department of
Environmental Conservation; Dan Austin, Staff,
Representative Kay Brown.
SUMMARY
SB 45 An Act relating to persons under 21 years of age;
providing for designation of `safe homes' for
runaway minors; and providing for an effective
date.
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SB 46 was reported out of Committee with "no
recommendations" and with zero fiscal notes by the
Department of Public Safety, the Department of
Environmental Conservation dated 4/25/94, the
Department of Fish and Game dated 4/25/94 and a
fiscal impact note by the Department of Natural
Resources dated 4/25/94.
SB 310 An Act relating to the management and sale of
state timber; relating to the classification of
state land that would preclude harvesting of
timber or would designate harvesting of timber as
an incompatible use; relating to the
administration of forest land, proposals for state
forest, and the determination of sustained yield;
and providing for an effective date.
SB 310 was placed into Subcommittee with
Representative Therriault as Chair and with
members Representatives MacLean, Grussendorf,
Foster, Brown and Parnell.
SB 370 An Act providing an exemption from gambling laws
for gambling conducted by cruise ships for their
ticketed passengers in the offshore water of the
state outside of ports; defining `cruise ship';
and providing for the licensing of certain cruise
ships before they can conduct gambling in the
offshore water of the state.
HCS CS SB 370 (FIN) was reported out of Committee
with a "do pass" recommendation and with a fiscal
note by the Department of Revenue dated 5/21/94.
SB 215 An Act relating to and redesignating the oil and
hazardous substance release response fund and to
its use in the event of a disaster emergency;
repealing the authority in law by which marine
highway vessels may be designed and constructed to
aid in oil and hazardous substance spill cleanup
in state marine water using money in the oil and
hazardous substance release response fund;
amending requirements relating to the revision of
state and regional master prevention and
contingency plans; altering requirements
applicable to liens for recovery of state
expenditures related to oil or hazardous
substances; amending the authority to contract to
provide personnel to respond to a release or
threatened release of oil or a hazardous substance
and to contract to conduct spill related research;
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reassigning responsibility for the oil and
hazardous substance response corps and for the
emergency response depots to the Department of
Environmental Conservation, and for the operation
of the state emergency response commission and its
attendant responsibilities for the local emergency
planning commissions to the Department of Military
and Veterans' Affairs; and modifying definitions
of terms relating to the preceding provisions;
terminating the nickel-per-barrel oil conservation
surcharge; levying and collecting two new oil
surcharges; and providing for the suspension and
reimposition of one of the new surcharges; and
providing for an effective date.
HCS CS SB 215 (FIN) was reported out of Committee
with "no recommendation" and with a fiscal note by
the Department of Revenue dated 4/27/94 and four
zero fiscal notes by the Department of Law dated
4/27/94, the Department of Administration dated
4/27/94, the Department of Public Safety dated
4/27/94 and the Department of Environmental
Conservation dated 4/27/94.
SENATE BILL 46
"An Act authorizing moose farming."
Co-Chair Larson briefed the Committee on the previous
pending MOTION to move CS SB 46 (FIN) out of Committee. Co-
Chair MacLean interrupted with questions for the Department
of Fish and Game:
1. Was there a surplus of caribou in the State;
2. How the legislation would affect the Federal
Reindeer Act of 1937;
3. Definition of surplus.
WAYNE REGELIN, DEPUTY DIRECTOR, DIVISION OF WILDLIFE
CONSERVATION, DEPARTMENT OF FISH AND GAME, responded that
there are three large caribou herds in Alaska at this time.
Caribou herds naturally cycle through "highs" and "lows",
and many would say that there is a surplus at this time. He
agreed that many people in Alaska depend on the Western
Arctic Caribou herd for food.
The Federal Reindeer Act passed in 1937 would affect the
legislation in that it restricts ownership of reindeer to
the Alaska Natives. The Act also defines "reindeer" as:
"Any reindeer or caribou that are under animal husbandry".
Consequently, any caribou placed in captivity, automatically
under federal law would become a reindeer and would be
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prohibited from ownership by anyone other than an Alaskan
Native. Permits would only then be issued to Alaska
Natives.
Mr. Regelin explained that SB 46 would cause confusion
within the Department of Fish and Game as hunters would want
to get the caribou surplus and the Department would not be
authorized to allow the issuance of permits. He added that
"surplus" has not been defined to date.
Co-Chair MacLean indicated that she opposed moving the bill
from Committee until amendments had been made to the
legislation to protect Native Alaskans. Co-Chair MacLean
MOVED to adopt Amendment #1, #8-LS0371\S.1, Utermohle,
5/04/94. [Copy on file]. Amendment #1 would remove all
reference to "caribou".
Co-Chair Larson noted that CS SB 46 would be further
discussed at the following meeting. Discussion followed
regarding the Open Meetings Guideline and the amount of
notice necessary to bring the bill back to Committee.
SB 46 was HELD in Committee.
SENATE BILL 310
"An Act relating to the management and sale of state
timber; relating to the classification of state land
that would preclude harvesting of timber or would
designate harvesting of timber as an incompatible use;
relating to the administration of forest land,
proposals for state forest, and the determination of
sustained yield; and providing for an effective date."
Co-Chair Larson placed SB 310 into Subcommittee with
Representative Therriault as Chair and with members
Representatives MacLean and Grussendorf.
KATE TROLL, UNITED FISHERMEN OF ALASKA (UFA), JUNEAU,
testified in opposition to SB 310 which would go beyond
establishing the Forest Management Agreements into making
substantial modifications to the State Forest Practices Act.
The bill would reduce the intent to manage state and
municipal forest for multiple use and would weaken the
forest planning and review process, while altering the
requirement for reforestation on private land. She
emphasized that the changes would be substantial to the
State Forest Practices Act.
Furthermore, the practices would come at a time when the
Board of Forestry, a Board established to resolve issues
relevant to the forest resources in the State, has
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acknowledged that the State Forest Practices Act is working
well and through a consensus negotiation states that the
product does not need to be altered.
Ms. Troll strongly recommended deleting all sections of SB
310 which alter the Forest Practices Act pointing out that
UFA was a key player in the two years of negotiations that
led to the State Forest Practices Act.
She advised an additional concern of UFA was the application
of the "sustained yield", Section #4, which calls for the
continuation and expansion of business. She pointed out
that "sustained yield" has been defined in statute as
"continuity of harvest over annual periods". The proposed
legislation would redefine "sustained yield", to be not just
"continuity", but also "expansion of business".
KATYA KIRSCH, EXECUTIVE ASSISTANT, ALASKA ENVIRONMENTAL
LOBBY, JUNEAU, testified in opposition to SB 310 explaining
that the forest management agreements will benefit
corporations more than the State. She emphasized that the
State should reconsider loosing money to subsidize removal
of forest lands.
SB 310 mandates long-term contracts for up to 20 years, with
a renewal option for another 20 years. Long-term contracts,
also called Forest Management Agreements (FMA's) will make
timber harvest the priority on state forest lands, elevating
timber over fisheries, wildlife, subsistence, tourism and
recreation values. Ms. Kirsch added that long-term timber
contracts are likely to have a negative impact on Alaska's
economy and natural resources:
1. Long-term contracts are unhealthy for Alaska's
pocket book.
2. Long-term contracts lock out future knowledge.
3. Timber-supply problems in order to fulfill long-
term contracts will occur.
4. Long-term contracts and mills may endanger Alaskan
communities economically and environmentally.
5. Industry should not manage state lands.
Ms. Kirsch enumerated a number of alternatives to long-term
contracts.
1. Maintain current timber sale length of three to
five years which would allow DNR to update
contracts as social values, economic situations,
and biological information change.
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2. This would allow reasonable certainty that
interested purchasers will have a steady supply of
timber to bid on at fair market value, without
locking up resources for 20 years and without
locking out other interested timber purchasers.
3. Encourage locally owned, value-added forest
industries.
REX BLAZER, REPRESENTING SELF, FAIRBANKS, spoke in
opposition to SB 310 which allows the state forestry
officials to sign long term contracts with timber companies.
He pointed out that long term contracts have been proven
unsustainable everywhere they are practiced. Mr. Blazer
emphasized that the proposed legislation will weaken the
Forest Practices Act due to:
1. No requirement for bonding.
2. No local hire guarantees.
3. No guarantee for value added.
4. No provision for biannual review.
5. No provision for requirements for operator paying
cost of building.
RON WOLF, CHIEF FORESTER, KLUCKWAN FOREST PRODUCTS, spoke in
support of SB 310 which would amend Title #38 and #41
creating the establishment of Forest Management Agreements
(FMA). He added that SB 310 will allow the Department of
Natural Resources (DNR) to respond to forest health problems
by allowing for limited emergency timber sales and the
halting of serious epidemics before they become
unmanageable.
Mr. Wolf mentioned that main benefit of the legislation
would be a reliable supply of wood for the industry to make
capital investments.
Mr. Wolf advised that the legislation would allow an
entrance into Forest Management Agreements allowing for
careful management of State forest lands and would bring
positive returns to the state treasury by managing timber
resources.
Representative Grussendorf advised that he had received a
memo from Board members from Mr. Wolf's corporation who
recommended that there be no changes in the Forest Practices
Act. Mr. Wolf responded that the amendments to Title #41
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are largely clerical and the effect would not change the
reforestation obligation to a landowner, although it would
remove a confusing reference to sustained yield.
(Tape Change, HFC 94-159, Side 2).
AUDREY MAGOEN, REPRESENTING SELF, FAIRBANKS, spoke in
opposition to the proposed legislation and provided the
Committee with a set of "Flow Charts" which she drew in
order to illustrate procedures between a regular commercial
timber sale (as mandated by Alaska law) and the sale of
timber through a Forest Management Agreement (FMA) as
proposed by SB 310. [Copy on file].
Ms. Magoen elaborated on the significant points of the
handouts, the operational forced inventory plan, the Forest
Management Plan, pointing out that the volunteer timber
sales would occur before the first opportunity for the
public to voice their opinion. She emphasized the necessity
for operational ground rules and management. She did not
feel the proposed legislation would allow the public to know
what is happening since they would not be given the
opportunity to witness the ground rules and provide input.
BARBARA KELLY, REPRESENTING SELF, JUNEAU, spoke against
multi-national corporations having control over large areas
of forest for a twenty year period. She requested that the
bill be held until further deliberation and consensus is
reached. If the bill is not held in Committee, Ms. Kelly
recommended consideration of amendments such as:
1. A provision to place a limit on the allowable cut
placed into FMA';
2. Provisions making the contractor responsible for
all the costs to the State related to
administering and enforcing the FMA;
3. Requiring a cost benefit analysis be provided on
the long term timber contracts to see if benefits
do exist;
4. A requirement for full funding of DNR and
Department of Fish and Game in order that they
adequately monitor the FMA's;
5. Allowance for adjustments to be made to harvest
plans to reflect inventories conducted;
6. Suggested amendments implemented in the House
Resources Committee which would make the sale of
the timber for fair market value which would be
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adjusted annually by the Commissioner; and
7. Limit the amount of timber in the FMA's.
CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, testified
that the Constitution of the State of Alaska compels the
proper and responsible development of our renewable forests.
Additionally, the Legislature and the current State
administration have seen fit to take concrete actions to
encourage the creation of new jobs and economic activity in
the State.
Mr. Gates recommended that the Committee adopt SB 310 for
the following reasons:
1. The legislation provides better management of the
set of resources found in the State forests;
2. Provides better management of the forest products
industry;
3. Provides a better chance to encourage outside
investment in value-added timber processing in
Alaska;
4. Provides a better chance to reduce whole log
exports from Alaska;
5. Better chance to provide more effective management
of spruce bark beetle infested forests;
6. Better chance to allow Alaskans to take advantage
of increased demand for forest products in the
Pacific Rim; and
7. Allows the State to set aside secure, long term
house log, firewood, harvest or other small scale
harvest areas to allow the capitalization of value
added processing facilities.
TOBY WHEELER, REPRESENTING SELF, JUNEAU, testified in
opposition to the legislation pointing out the amount of
controversy surrounding the bill. He thought that a better
bill could be constructed with "more time" which could
address the twenty year contracts. Mr. Wheeler urged
Committee members to consider creating a Task Force to
further consider the legislation.
MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND
GAME, reiterated the Administration's support of the
legislation. Deputy Commissioner Campbell spoke to the
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fiscal obligation of the Department of Fish and Game. Mr
Campbell reported that in preparation of the fiscal note,
the Department analyzed FMA's in North America. The fiscal
note would include salaries for one biologist, one fish-
technician and a clerk typist per FMA. The House Resources
Committee has added amendments which would create greater
fiscal concern.
(Tape Change, HFC 94-160, Side 1).
Representative Grussendorf commented on the amount of
authority and responsibility placed on the Commissioner of
the Department of Natural Resources. He felt there should
be greater scrutiny of the contents of the contract. Mr.
McKie replied that from a fish and wildlife perspective, the
Department would prefer greater involvement in the process.
Representative Brown questioned the zero fiscal note
provided by the Department of Natural Resources.
Co-Chair Larson noted that the Subcommittee would be
expanded to include Representative Therriault as Chair and
with members Representatives Brown, Grussendorf, Foster,
Parnell and MacLean.
SB 310 was HELD in Committee for further consideration.
SENATE BILL 370
"An Act providing an exemption from gambling laws for
gambling conducted by cruise ships for their ticketed
passengers in the offshore water of the state outside
of ports; defining `cruise ship'; and providing for the
licensing of certain cruise ships before they can
conduct gambling in the offshore water of the state."
Representative Martin noted his concerns with the
legislation. He asked if a three percent tax was charged to
the cruise lines for gaming receipts or if they were exempt
from paying that fee.
DONALD STOLWORTHY, DIRECTOR, CHARITABLE GAMING DIVISION,
DEPARTMENT OF REVENUE, replied that the State accesses a
three percent tax on the gross income of charities that have
pull tabs. The fee structure in the committee substitute is
not based on a percentage of the adjustable income. It is a
flat rate fee per ship based upon the size of the ship.
Representative Martin pointed out the amount received would
be less than anticipated.
Representative Martin asked if cruise ships were subject to
federal or state law when they sail into state waters. Mr.
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Stolworthy indicated this was a matter of dispute between
the state and the cruise lines. Cruise lines maintain that
they are not subject to U.S. jurisdiction or state
jurisdiction. The Division of Charitable Gaming maintains
that the cruise boats are subject to state law when in state
waters.
Mr. Stolworthy elaborated that the State of Alaska and the
Indian Gaming Law expounds that only activities can be
conducted that are authorized under state law. The federal
courts which regulate that act have taken a broader
interpretation. The only time the courts have taken a
restrictive interpretation was when gambling activity could
adversely impact the tribe's income. The law was
specifically established to benefit the tribes economically.
Representative Brown clarified that the State has
jurisdiction from three miles off shore and that there can
be no gambling within three miles of a port of call.
Representative Martin asked if the legislation would provide
authority for the first time in which gambling versus gaming
would be allowed. Mr. Stolworthy replied gaming is a
euphemism for gambling. There are three classes of
gaming/gambling:
1. Class #1 - For amusement.
2. Class #2 - Bingo & pull tabs.
3. Class #3 - Banking card games and slot machines.
He said that the State of Alaska allows gambling.
Representative Martin noted that one could be done in the
name of "charity" and the other could be done in the name of
"free enterprise". Mr. Stolworthy replied that in
charitable gaming, the proceeds are dedicated to worthy
causes which differs from commercial gaming. Cruise ship
gambling would be strictly a commercial enterprise.
JERRY RHEINWALD, REPRESENTING SELF, JUNEAU, requested the
Committee consider an amendment. The issue addresses "on
board promotions", and preferential mention, an advertising
scheme that a lot of small merchants find objectionable.
The proposed amendment would replace the current section (c)
with a total ban of on board advertising promotions. The
language makes it specific that the ban would be targeted to
on board advertising of local merchants.
THOMAS DOW, VICE PRESIDENT, PRINCESS TOURS, ANCHORAGE,
referenced the letter included in the Committee members bill
packet. [Copy on file]. He spoke in support of the
legislation which would allow gambling aboard cruise ships
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within Alaskan waters for ticketed cruise passengers.
Cruise ships would be required to pay a fee to the State for
an exemption prior to conducting gambling under the
legislation. He added that this is an activity that has
been included for passengers for the past twenty years and
has not adversely impacted any community. The language
specifically prohibits the operation of casinos within three
miles of any port of call. Mr. Dow spoke in support of the
amendment.
Co-Chair MacLean MOVED that the version before the Committee
be HCS CS SB 370 (JUD). There being NO OBJECTION, it was
adopted.
Representative Navarre MOVED to adopt Amendment #1 including
Section (A). Representative Brown recommended deleting "in"
of the title and inserting "of". There being NO OBJECTION
to the title change, the amendment was adopted.
Co-Chair MacLean MOVED to report HCS CS SB 370 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTIONS, it was
so ordered.
HCS CS SB 370 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Revenue dated 5/02/94.
(Tape Change, HFC 94-160, Side 2).
SENATE BILL 215
"An Act relating to and redesignating the oil and
hazardous substance release response fund and to its
use in the event of a disaster emergency; repealing the
authority in law by which marine highway vessels may be
designed and constructed to aid in oil and hazardous
substance spill cleanup in state marine water using
money in the oil and hazardous substance release
response fund; amending requirements relating to the
revision of state and regional master prevention and
contingency plans; altering requirements applicable to
liens for recovery of state expenditures related to oil
or hazardous substances; amending the authority to
contract to provide personnel to respond to a release
or threatened release of oil or a hazardous substance
and to contract to conduct spill related research;
reassigning responsibility for the oil and hazardous
substance response corps and for the emergency response
depots to the Department of Environmental Conservation,
and for the operation of the state emergency response
commission and its attendant responsibilities for the
11
local emergency planning commissions to the Department
of Military and Veterans' Affairs; and modifying
definitions of terms relating to the preceding
provisions; terminating the nickel-per-barrel oil
conservation surcharge; levying and collecting two new
oil surcharges; and providing for the suspension and
reimposition of one of the new surcharges; and
providing for an effective date."
Representative Therriault MOVED that the version before the
Committee be work draft #8-LS110\T, Chenoweth, 5/02/94.
There being NO OBJECTION, it was so ordered.
Representative Therriault distributed to the Committee
Amendment #4, a xerox of the House Resource version of the
legislation. The amendment would delete Sections #30 & #31
and replace it with the language of Section #30 from the
Resources version. Representative Therriault MOVED to adopt
Amendment #1. The language would do away with the 2,500
barrel threshold, replacing it with language rolled forward
from the Senate version.
BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that
Amendment #1 would eliminate Sections #30 & #31 in the House
Finance version. Section #30 was the section which
established a threshold of 2,500 barrels for the use of the
Response Account and would have required a 72-hour reporting
period and a verification from the Governor. Section #31
allowed the Department, for spills under 2,500 barrels, to
use the remaining balance of the prevention account. He
added that Amendment #4 would eliminate those two sections
and would replace them with the section from the Resource's
version which allows DEC to access the response account for
any "threatened or actual release of any size" and must
report in writing to the Governor and the Legislative Budget
and Audit Committee within 120 hours of taking action.
Representative Martin MOVED to amend Amendment #4 to 5
working days rather than 120 hours. Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Martin.
OPPOSED: Parnell, Therriault, Foster,
Grussendorf, Hanley, Navarre, MacLean,
Larson.
Representative Hoffman was not present for the vote.
The MOTION FAILED (2-8).
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There being NO OBJECTION to adopting Amendment #4, it was
adopted.
Co-Chair MacLean MOVED to adopt Amendment #5 which would
allow for the incorporation of above ground storage tanks.
Mr. Poe reminded the Committee of the amount of money a
three cent surcharge would produce. He pointed out that it
would not provide enough to address either the above or
below ground storage tank problems. He recommended further
consideration of motor fuel taxes to address those problems.
Mr. Poe stated the Department would not object to the
amendment. Representative Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hanley,
Martin, Navarre, Parnell, Larson,
MacLean.
OPPOSED: Therriault.
Representative Hoffman was not present for the vote.
The MOTION PASSED (9-1).
Representative Brown MOVED to adopt Amendment #6, #8-
LS1107\C.4, Chenoweth, 4/30/94.
DAN AUSTIN, STAFF, REPRESENTATIVE KAY BROWN, explained that
the money in the mitigation account is automatically placed
into the response fund. The amendment would return the
status quo in order to receive the general fund mitigation
account and then the Legislature could make an appropriation
from the response fund.
Mr. Poe corrected Mr. Austin's explanation, explaining that
the Exxon payments would go to the prevention account,
mitigation account. Both of those accounts have a
mitigation account and through the front section of the
budget, the money collected in the mitigation account would
then be appropriated to the prevention account or to other
uses. Representative Brown WITHDREW Amendment #6.
Representative Brown MOVED to adopt Amendment #7 which would
allow the response fund to be used for threatened releases.
Mr. Poe supported the amendment. There being NO OBJECTION,
it was adopted.
Representative Brown MOVED to adopt Amendment #8 which would
require that restoration activities after a spill be paid
for from the response portion of the fund and not from the
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prevention portion of the account. Mr. Poe indicated that
would be a policy call of the Legislature. Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre, Brown.
OPPOSED: Foster, Hanley, Martin, Parnell,
Therriault, MacLean, Larson.
Representative Hoffman was not present for the vote.
The MOTION FAILED (3-7).
Representative Brown MOVED TO WITHDRAW Amendment #9. There
being NO OBJECTION, it was withdrawn.
Representative Brown MOVED to adopt Amendment #10 which
would delete the definition of a catastrophic oil release
returning the bill to the House Resources version. There
being NO OBJECTION, it was adopted.
Representative Brown MOVED to adopt Amendment #11 which
would split the existing reserve funds between the two
accounts. Mr. Poe stated that the effect of the split would
be to create a $24 million dollar tax reduction over a five
year period of time.
REPRESENTATIVE DAVID FINKELSTEIN asked if there would be
enough money for both the above and the below ground storage
tanks without the amendment. Mr. Poe stated there would
not. Representative Therriault added that even with the
amendment, there would not be sufficient money for those
concerns. Representative Therriault OBJECTED to Amendment
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Navarre, Brown,
Larson.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Foster.
The MOTION FAILED (5-6).
Representative Therriault MOVED to report HCS CS SB 215
(FIN) out of Committee with individual recommendations and
with the accompanying fiscal notes. There being NO
OBJECTIONS, it was so ordered.
HCS CS SB 215 (FIN) was reported out of Committee with "no
recommendations" and with a fiscal note by the Department of
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Revenue dated 4/27/94 and zero fiscal notes by the
Department of Law dated 4/27/94, the Department of
Administration dated 4/27/94, the Department of Public
Safety dated 4/27/94 and the Department of Environmental
Conservation dated 4/27/94.
(Tape Change, HFC 94-161, Side 1).
SENATE BILL 46
"An Act authorizing moose farming."
Co-Chair MacLean MOVED to adopt Amendment #1. There being
NO OBJECTION, it was adopted.
Co-Chair MacLean MOVED to adopt Amendment #2 which would
address reindeer herd grazing permits. There being NO
OBJECTION, it was adopted.
Co-Chair MacLean MOVED to adopt Amendment #3 stating that
the Commissioner "will" exempt by regulation, the farming of
free ranging reindeer. There being NO OBJECTIONS, it was
adopted.
Representative Therriault MOVED to report HCS CS SB 46 (FIN)
out of Committee with individual recommendations and with
the accompanying fiscal notes. There being NO OBJECTIONS,
it was so ordered.
HCS CS SB 46 (FIN) was reported out of Committee with "no
recommendations" and with zero fiscal notes by the
Department of Public Safety, the Department of Environmental
Conservation dated 4/25/94, the Department of Fish and Game
dated 4/25/94, and a fiscal impact note by the Department of
Natural Resources dated 4/24/94.
ADJOURNMENT
The meeting adjourned at 5:30 P.M.
HOUSE FINANCE COMMITTEE
May 5, 1994
1:30 P.M.
TAPE HFC 94 - 159, Side 1, #000 - end.
TAPE HFC 94 - 159, Side 2, #000 - end.
TAPE HFC 94 - 160, Side 1, #000 - end.
TAPE HFC 94 - 160, Side 2, #000 - end.
TAPE HFC 94 - 161, Side 1, #000 - #87.
CALL TO ORDER
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Co-Chair Larson called the House Finance Committee meeting
to order at 1:30 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Representative David Finkelstein; Representative Bill
Williams; McKie Campbell, Deputy Commissioner, Department of
Fish and Game; Frank Rue, Director, Habitat & Restoration
Division, Department of Fish and Game; Wayne Regelin, Deputy
Director, Wildlife Conservation, Department of Fish and
Game; Donald Stolworthy, Director, Charitable Gaming
Division, Department of Revenue; Chris Gates, Director,
Division of Economic Development, Department of Commerce and
Economic Development; Jerry Rheinwald, Self, Juneau; Tom
Dow, Vice President, Princess Tours, Anchorage; Kate Troll,
United Fishermen of Alaska (UFA), Juneau; Katya Kirsch,
Alaska Environmental Lobby, Juneau; Rex Blazer, Self,
Fairbanks; Ron Wolf, Chief Forester, Kluckwan Forest
Products; Audrey Magoen, Self, Fairbanks; Barbara Kelly,
Self, Juneau; Toby Wheeler, Self, Juneau; Bob Poe, Director,
Division of Administrative Services, Department of
Environmental Conservation; Dan Austin, Staff,
Representative Kay Brown.
SUMMARY
SB 45 An Act relating to persons under 21 years of age;
providing for designation of `safe homes' for
runaway minors; and providing for an effective
date.
SB 46 was reported out of Committee with "no
recommendations" and with zero fiscal notes by the
Department of Public Safety, the Department of
Environmental Conservation dated 4/25/94, the
Department of Fish and Game dated 4/25/94 and a
fiscal impact note by the Department of Natural
Resources dated 4/25/94.
SB 310 An Act relating to the management and sale of
state timber; relating to the classification of
state land that would preclude harvesting of
16
timber or would designate harvesting of timber as
an incompatible use; relating to the
administration of forest land, proposals for state
forest, and the determination of sustained yield;
and providing for an effective date.
SB 310 was placed into Subcommittee with
Representative Therriault as Chair and with
members Representatives MacLean, Grussendorf,
Foster, Brown and Parnell.
SB 370 An Act providing an exemption from gambling laws
for gambling conducted by cruise ships for their
ticketed passengers in the offshore water of the
state outside of ports; defining `cruise ship';
and providing for the licensing of certain cruise
ships before they can conduct gambling in the
offshore water of the state.
HCS CS SB 370 (FIN) was reported out of Committee
with a "do pass" recommendation and with a fiscal
note by the Department of Revenue dated 5/21/94.
SB 215 An Act relating to and redesignating the oil and
hazardous substance release response fund and to
its use in the event of a disaster emergency;
repealing the authority in law by which marine
highway vessels may be designed and constructed to
aid in oil and hazardous substance spill cleanup
in state marine water using money in the oil and
hazardous substance release response fund;
amending requirements relating to the revision of
state and regional master prevention and
contingency plans; altering requirements
applicable to liens for recovery of state
expenditures related to oil or hazardous
substances; amending the authority to contract to
provide personnel to respond to a release or
threatened release of oil or a hazardous substance
and to contract to conduct spill related research;
reassigning responsibility for the oil and
hazardous substance response corps and for the
emergency response depots to the Department of
Environmental Conservation, and for the operation
of the state emergency response commission and its
attendant responsibilities for the local emergency
planning commissions to the Department of Military
and Veterans' Affairs; and modifying definitions
of terms relating to the preceding provisions;
terminating the nickel-per-barrel oil conservation
surcharge; levying and collecting two new oil
surcharges; and providing for the suspension and
17
reimposition of one of the new surcharges; and
providing for an effective date.
HCS CS SB 215 (FIN) was reported out of Committee
with "no recommendation" and with a fiscal note by
the Department of Revenue dated 4/27/94 and four
zero fiscal notes by the Department of Law dated
4/27/94, the Department of Administration dated
4/27/94, the Department of Public Safety dated
4/27/94 and the Department of Environmental
Conservation dated 4/27/94.
SENATE BILL 46
"An Act authorizing moose farming."
Co-Chair Larson briefed the Committee on the previous
pending MOTION to move CS SB 46 (FIN) out of Committee. Co-
Chair MacLean interrupted with questions for the Department
of Fish and Game:
1. Was there a surplus of caribou in the State;
2. How the legislation would affect the Federal
Reindeer Act of 1937;
3. Definition of surplus.
WAYNE REGELIN, DEPUTY DIRECTOR, DIVISION OF WILDLIFE
CONSERVATION, DEPARTMENT OF FISH AND GAME, responded that
there are three large caribou herds in Alaska at this time.
Caribou herds naturally cycle through "highs" and "lows",
and many would say that there is a surplus at this time. He
agreed that many people in Alaska depend on the Western
Arctic Caribou herd for food.
The Federal Reindeer Act passed in 1937 would affect the
legislation in that it restricts ownership of reindeer to
the Alaska Natives. The Act also defines "reindeer" as:
"Any reindeer or caribou that are under animal husbandry".
Consequently, any caribou placed in captivity, automatically
under federal law would become a reindeer and would be
prohibited from ownership by anyone other than an Alaskan
Native. Permits would only then be issued to Alaska
Natives.
Mr. Regelin explained that SB 46 would cause confusion
within the Department of Fish and Game as hunters would want
to get the caribou surplus and the Department would not be
authorized to allow the issuance of permits. He added that
"surplus" has not been defined to date.
Co-Chair MacLean indicated that she opposed moving the bill
from Committee until amendments had been made to the
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legislation to protect Native Alaskans. Co-Chair MacLean
MOVED to adopt Amendment #1, #8-LS0371\S.1, Utermohle,
5/04/94. [Copy on file]. Amendment #1 would remove all
reference to "caribou".
Co-Chair Larson noted that CS SB 46 would be further
discussed at the following meeting. Discussion followed
regarding the Open Meetings Guideline and the amount of
notice necessary to bring the bill back to Committee.
SB 46 was HELD in Committee.
SENATE BILL 310
"An Act relating to the management and sale of state
timber; relating to the classification of state land
that would preclude harvesting of timber or would
designate harvesting of timber as an incompatible use;
relating to the administration of forest land,
proposals for state forest, and the determination of
sustained yield; and providing for an effective date."
Co-Chair Larson placed SB 310 into Subcommittee with
Representative Therriault as Chair and with members
Representatives MacLean and Grussendorf.
KATE TROLL, UNITED FISHERMEN OF ALASKA (UFA), JUNEAU,
testified in opposition to SB 310 which would go beyond
establishing the Forest Management Agreements into making
substantial modifications to the State Forest Practices Act.
The bill would reduce the intent to manage state and
municipal forest for multiple use and would weaken the
forest planning and review process, while altering the
requirement for reforestation on private land. She
emphasized that the changes would be substantial to the
State Forest Practices Act.
Furthermore, the practices would come at a time when the
Board of Forestry, a Board established to resolve issues
relevant to the forest resources in the State, has
acknowledged that the State Forest Practices Act is working
well and through a consensus negotiation states that the
product does not need to be altered.
Ms. Troll strongly recommended deleting all sections of SB
310 which alter the Forest Practices Act pointing out that
UFA was a key player in the two years of negotiations that
led to the State Forest Practices Act.
She advised an additional concern of UFA was the application
of the "sustained yield", Section #4, which calls for the
continuation and expansion of business. She pointed out
that "sustained yield" has been defined in statute as
19
"continuity of harvest over annual periods". The proposed
legislation would redefine "sustained yield", to be not just
"continuity", but also "expansion of business".
KATYA KIRSCH, EXECUTIVE ASSISTANT, ALASKA ENVIRONMENTAL
LOBBY, JUNEAU, testified in opposition to SB 310 explaining
that the forest management agreements will benefit
corporations more than the State. She emphasized that the
State should reconsider loosing money to subsidize removal
of forest lands.
SB 310 mandates long-term contracts for up to 20 years, with
a renewal option for another 20 years. Long-term contracts,
also called Forest Management Agreements (FMA's) will make
timber harvest the priority on state forest lands, elevating
timber over fisheries, wildlife, subsistence, tourism and
recreation values. Ms. Kirsch added that long-term timber
contracts are likely to have a negative impact on Alaska's
economy and natural resources:
1. Long-term contracts are unhealthy for Alaska's
pocket book.
2. Long-term contracts lock out future knowledge.
3. Timber-supply problems in order to fulfill long-
term contracts will occur.
4. Long-term contracts and mills may endanger Alaskan
communities economically and environmentally.
5. Industry should not manage state lands.
Ms. Kirsch enumerated a number of alternatives to long-term
contracts.
1. Maintain current timber sale length of three to
five years which would allow DNR to update
contracts as social values, economic situations,
and biological information change.
2. This would allow reasonable certainty that
interested purchasers will have a steady supply of
timber to bid on at fair market value, without
locking up resources for 20 years and without
locking out other interested timber purchasers.
3. Encourage locally owned, value-added forest
industries.
REX BLAZER, REPRESENTING SELF, FAIRBANKS, spoke in
opposition to SB 310 which allows the state forestry
20
officials to sign long term contracts with timber companies.
He pointed out that long term contracts have been proven
unsustainable everywhere they are practiced. Mr. Blazer
emphasized that the proposed legislation will weaken the
Forest Practices Act due to:
1. No requirement for bonding.
2. No local hire guarantees.
3. No guarantee for value added.
4. No provision for biannual review.
5. No provision for requirements for operator paying
cost of building.
RON WOLF, CHIEF FORESTER, KLUCKWAN FOREST PRODUCTS, spoke in
support of SB 310 which would amend Title #38 and #41
creating the establishment of Forest Management Agreements
(FMA). He added that SB 310 will allow the Department of
Natural Resources (DNR) to respond to forest health problems
by allowing for limited emergency timber sales and the
halting of serious epidemics before they become
unmanageable.
Mr. Wolf mentioned that main benefit of the legislation
would be a reliable supply of wood for the industry to make
capital investments.
Mr. Wolf advised that the legislation would allow an
entrance into Forest Management Agreements allowing for
careful management of State forest lands and would bring
positive returns to the state treasury by managing timber
resources.
Representative Grussendorf advised that he had received a
memo from Board members from Mr. Wolf's corporation who
recommended that there be no changes in the Forest Practices
Act. Mr. Wolf responded that the amendments to Title #41
are largely clerical and the effect would not change the
reforestation obligation to a landowner, although it would
remove a confusing reference to sustained yield.
(Tape Change, HFC 94-159, Side 2).
AUDREY MAGOEN, REPRESENTING SELF, FAIRBANKS, spoke in
opposition to the proposed legislation and provided the
Committee with a set of "Flow Charts" which she drew in
order to illustrate procedures between a regular commercial
timber sale (as mandated by Alaska law) and the sale of
timber through a Forest Management Agreement (FMA) as
21
proposed by SB 310. [Copy on file].
Ms. Magoen elaborated on the significant points of the
handouts, the operational forced inventory plan, the Forest
Management Plan, pointing out that the volunteer timber
sales would occur before the first opportunity for the
public to voice their opinion. She emphasized the necessity
for operational ground rules and management. She did not
feel the proposed legislation would allow the public to know
what is happening since they would not be given the
opportunity to witness the ground rules and provide input.
BARBARA KELLY, REPRESENTING SELF, JUNEAU, spoke against
multi-national corporations having control over large areas
of forest for a twenty year period. She requested that the
bill be held until further deliberation and consensus is
reached. If the bill is not held in Committee, Ms. Kelly
recommended consideration of amendments such as:
1. A provision to place a limit on the allowable cut
placed into FMA';
2. Provisions making the contractor responsible for
all the costs to the State related to
administering and enforcing the FMA;
3. Requiring a cost benefit analysis be provided on
the long term timber contracts to see if benefits
do exist;
4. A requirement for full funding of DNR and
Department of Fish and Game in order that they
adequately monitor the FMA's;
5. Allowance for adjustments to be made to harvest
plans to reflect inventories conducted;
6. Suggested amendments implemented in the House
Resources Committee which would make the sale of
the timber for fair market value which would be
adjusted annually by the Commissioner; and
7. Limit the amount of timber in the FMA's.
CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, testified
that the Constitution of the State of Alaska compels the
proper and responsible development of our renewable forests.
Additionally, the Legislature and the current State
administration have seen fit to take concrete actions to
encourage the creation of new jobs and economic activity in
the State.
22
Mr. Gates recommended that the Committee adopt SB 310 for
the following reasons:
1. The legislation provides better management of the
set of resources found in the State forests;
2. Provides better management of the forest products
industry;
3. Provides a better chance to encourage outside
investment in value-added timber processing in
Alaska;
4. Provides a better chance to reduce whole log
exports from Alaska;
5. Better chance to provide more effective management
of spruce bark beetle infested forests;
6. Better chance to allow Alaskans to take advantage
of increased demand for forest products in the
Pacific Rim; and
7. Allows the State to set aside secure, long term
house log, firewood, harvest or other small scale
harvest areas to allow the capitalization of value
added processing facilities.
TOBY WHEELER, REPRESENTING SELF, JUNEAU, testified in
opposition to the legislation pointing out the amount of
controversy surrounding the bill. He thought that a better
bill could be constructed with "more time" which could
address the twenty year contracts. Mr. Wheeler urged
Committee members to consider creating a Task Force to
further consider the legislation.
MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND
GAME, reiterated the Administration's support of the
legislation. Deputy Commissioner Campbell spoke to the
fiscal obligation of the Department of Fish and Game. Mr
Campbell reported that in preparation of the fiscal note,
the Department analyzed FMA's in North America. The fiscal
note would include salaries for one biologist, one fish-
technician and a clerk typist per FMA. The House Resources
Committee has added amendments which would create greater
fiscal concern.
(Tape Change, HFC 94-160, Side 1).
Representative Grussendorf commented on the amount of
authority and responsibility placed on the Commissioner of
23
the Department of Natural Resources. He felt there should
be greater scrutiny of the contents of the contract. Mr.
McKie replied that from a fish and wildlife perspective, the
Department would prefer greater involvement in the process.
Representative Brown questioned the zero fiscal note
provided by the Department of Natural Resources.
Co-Chair Larson noted that the Subcommittee would be
expanded to include Representative Therriault as Chair and
with members Representatives Brown, Grussendorf, Foster,
Parnell and MacLean.
SB 310 was HELD in Committee for further consideration.
SENATE BILL 370
"An Act providing an exemption from gambling laws for
gambling conducted by cruise ships for their ticketed
passengers in the offshore water of the state outside
of ports; defining `cruise ship'; and providing for the
licensing of certain cruise ships before they can
conduct gambling in the offshore water of the state."
Representative Martin noted his concerns with the
legislation. He asked if a three percent tax was charged to
the cruise lines for gaming receipts or if they were exempt
from paying that fee.
DONALD STOLWORTHY, DIRECTOR, CHARITABLE GAMING DIVISION,
DEPARTMENT OF REVENUE, replied that the State accesses a
three percent tax on the gross income of charities that have
pull tabs. The fee structure in the committee substitute is
not based on a percentage of the adjustable income. It is a
flat rate fee per ship based upon the size of the ship.
Representative Martin pointed out the amount received would
be less than anticipated.
Representative Martin asked if cruise ships were subject to
federal or state law when they sail into state waters. Mr.
Stolworthy indicated this was a matter of dispute between
the state and the cruise lines. Cruise lines maintain that
they are not subject to U.S. jurisdiction or state
jurisdiction. The Division of Charitable Gaming maintains
that the cruise boats are subject to state law when in state
waters.
Mr. Stolworthy elaborated that the State of Alaska and the
Indian Gaming Law expounds that only activities can be
conducted that are authorized under state law. The federal
courts which regulate that act have taken a broader
interpretation. The only time the courts have taken a
24
restrictive interpretation was when gambling activity could
adversely impact the tribe's income. The law was
specifically established to benefit the tribes economically.
Representative Brown clarified that the State has
jurisdiction from three miles off shore and that there can
be no gambling within three miles of a port of call.
Representative Martin asked if the legislation would provide
authority for the first time in which gambling versus gaming
would be allowed. Mr. Stolworthy replied gaming is a
euphemism for gambling. There are three classes of
gaming/gambling:
1. Class #1 - For amusement.
2. Class #2 - Bingo & pull tabs.
3. Class #3 - Banking card games and slot machines.
He said that the State of Alaska allows gambling.
Representative Martin noted that one could be done in the
name of "charity" and the other could be done in the name of
"free enterprise". Mr. Stolworthy replied that in
charitable gaming, the proceeds are dedicated to worthy
causes which differs from commercial gaming. Cruise ship
gambling would be strictly a commercial enterprise.
JERRY RHEINWALD, REPRESENTING SELF, JUNEAU, requested the
Committee consider an amendment. The issue addresses "on
board promotions", and preferential mention, an advertising
scheme that a lot of small merchants find objectionable.
The proposed amendment would replace the current section (c)
with a total ban of on board advertising promotions. The
language makes it specific that the ban would be targeted to
on board advertising of local merchants.
THOMAS DOW, VICE PRESIDENT, PRINCESS TOURS, ANCHORAGE,
referenced the letter included in the Committee members bill
packet. [Copy on file]. He spoke in support of the
legislation which would allow gambling aboard cruise ships
within Alaskan waters for ticketed cruise passengers.
Cruise ships would be required to pay a fee to the State for
an exemption prior to conducting gambling under the
legislation. He added that this is an activity that has
been included for passengers for the past twenty years and
has not adversely impacted any community. The language
specifically prohibits the operation of casinos within three
miles of any port of call. Mr. Dow spoke in support of the
amendment.
Co-Chair MacLean MOVED that the version before the Committee
be HCS CS SB 370 (JUD). There being NO OBJECTION, it was
25
adopted.
Representative Navarre MOVED to adopt Amendment #1 including
Section (A). Representative Brown recommended deleting "in"
of the title and inserting "of". There being NO OBJECTION
to the title change, the amendment was adopted.
Co-Chair MacLean MOVED to report HCS CS SB 370 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTIONS, it was
so ordered.
HCS CS SB 370 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Revenue dated 5/02/94.
(Tape Change, HFC 94-160, Side 2).
SENATE BILL 215
"An Act relating to and redesignating the oil and
hazardous substance release response fund and to its
use in the event of a disaster emergency; repealing the
authority in law by which marine highway vessels may be
designed and constructed to aid in oil and hazardous
substance spill cleanup in state marine water using
money in the oil and hazardous substance release
response fund; amending requirements relating to the
revision of state and regional master prevention and
contingency plans; altering requirements applicable to
liens for recovery of state expenditures related to oil
or hazardous substances; amending the authority to
contract to provide personnel to respond to a release
or threatened release of oil or a hazardous substance
and to contract to conduct spill related research;
reassigning responsibility for the oil and hazardous
substance response corps and for the emergency response
depots to the Department of Environmental Conservation,
and for the operation of the state emergency response
commission and its attendant responsibilities for the
local emergency planning commissions to the Department
of Military and Veterans' Affairs; and modifying
definitions of terms relating to the preceding
provisions; terminating the nickel-per-barrel oil
conservation surcharge; levying and collecting two new
oil surcharges; and providing for the suspension and
reimposition of one of the new surcharges; and
providing for an effective date."
Representative Therriault MOVED that the version before the
Committee be work draft #8-LS110\T, Chenoweth, 5/02/94.
There being NO OBJECTION, it was so ordered.
26
Representative Therriault distributed to the Committee
Amendment #4, a xerox of the House Resource version of the
legislation. The amendment would delete Sections #30 & #31
and replace it with the language of Section #30 from the
Resources version. Representative Therriault MOVED to adopt
Amendment #1. The language would do away with the 2,500
barrel threshold, replacing it with language rolled forward
from the Senate version.
BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that
Amendment #1 would eliminate Sections #30 & #31 in the House
Finance version. Section #30 was the section which
established a threshold of 2,500 barrels for the use of the
Response Account and would have required a 72-hour reporting
period and a verification from the Governor. Section #31
allowed the Department, for spills under 2,500 barrels, to
use the remaining balance of the prevention account. He
added that Amendment #4 would eliminate those two sections
and would replace them with the section from the Resource's
version which allows DEC to access the response account for
any "threatened or actual release of any size" and must
report in writing to the Governor and the Legislative Budget
and Audit Committee within 120 hours of taking action.
Representative Martin MOVED to amend Amendment #4 to 5
working days rather than 120 hours. Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Martin.
OPPOSED: Parnell, Therriault, Foster,
Grussendorf, Hanley, Navarre, MacLean,
Larson.
Representative Hoffman was not present for the vote.
The MOTION FAILED (2-8).
There being NO OBJECTION to adopting Amendment #4, it was
adopted.
Co-Chair MacLean MOVED to adopt Amendment #5 which would
allow for the incorporation of above ground storage tanks.
Mr. Poe reminded the Committee of the amount of money a
three cent surcharge would produce. He pointed out that it
would not provide enough to address either the above or
below ground storage tank problems. He recommended further
consideration of motor fuel taxes to address those problems.
27
Mr. Poe stated the Department would not object to the
amendment. Representative Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hanley,
Martin, Navarre, Parnell, Larson,
MacLean.
OPPOSED: Therriault.
Representative Hoffman was not present for the vote.
The MOTION PASSED (9-1).
Representative Brown MOVED to adopt Amendment #6, #8-
LS1107\C.4, Chenoweth, 4/30/94.
DAN AUSTIN, STAFF, REPRESENTATIVE KAY BROWN, explained that
the money in the mitigation account is automatically placed
into the response fund. The amendment would return the
status quo in order to receive the general fund mitigation
account and then the Legislature could make an appropriation
from the response fund.
Mr. Poe corrected Mr. Austin's explanation, explaining that
the Exxon payments would go to the prevention account,
mitigation account. Both of those accounts have a
mitigation account and through the front section of the
budget, the money collected in the mitigation account would
then be appropriated to the prevention account or to other
uses. Representative Brown WITHDREW Amendment #6.
Representative Brown MOVED to adopt Amendment #7 which would
allow the response fund to be used for threatened releases.
Mr. Poe supported the amendment. There being NO OBJECTION,
it was adopted.
Representative Brown MOVED to adopt Amendment #8 which would
require that restoration activities after a spill be paid
for from the response portion of the fund and not from the
prevention portion of the account. Mr. Poe indicated that
would be a policy call of the Legislature. Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre, Brown.
OPPOSED: Foster, Hanley, Martin, Parnell,
Therriault, MacLean, Larson.
Representative Hoffman was not present for the vote.
28
The MOTION FAILED (3-7).
Representative Brown MOVED TO WITHDRAW Amendment #9. There
being NO OBJECTION, it was withdrawn.
Representative Brown MOVED to adopt Amendment #10 which
would delete the definition of a catastrophic oil release
returning the bill to the House Resources version. There
being NO OBJECTION, it was adopted.
Representative Brown MOVED to adopt Amendment #11 which
would split the existing reserve funds between the two
accounts. Mr. Poe stated that the effect of the split would
be to create a $24 million dollar tax reduction over a five
year period of time.
REPRESENTATIVE DAVID FINKELSTEIN asked if there would be
enough money for both the above and the below ground storage
tanks without the amendment. Mr. Poe stated there would
not. Representative Therriault added that even with the
amendment, there would not be sufficient money for those
concerns. Representative Therriault OBJECTED to Amendment
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Navarre, Brown,
Larson.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Foster.
The MOTION FAILED (5-6).
Representative Therriault MOVED to report HCS CS SB 215
(FIN) out of Committee with individual recommendations and
with the accompanying fiscal notes. There being NO
OBJECTIONS, it was so ordered.
HCS CS SB 215 (FIN) was reported out of Committee with "no
recommendations" and with a fiscal note by the Department of
Revenue dated 4/27/94 and zero fiscal notes by the
Department of Law dated 4/27/94, the Department of
Administration dated 4/27/94, the Department of Public
Safety dated 4/27/94 and the Department of Environmental
Conservation dated 4/27/94.
(Tape Change, HFC 94-161, Side 1).
SENATE BILL 46
"An Act authorizing moose farming."
29
Co-Chair MacLean MOVED to adopt Amendment #1. There being
NO OBJECTION, it was adopted.
Co-Chair MacLean MOVED to adopt Amendment #2 which would
address reindeer herd grazing permits. There being NO
OBJECTION, it was adopted.
Co-Chair MacLean MOVED to adopt Amendment #3 stating that
the Commissioner "will" exempt by regulation, the farming of
free ranging reindeer. There being NO OBJECTIONS, it was
adopted.
Representative Therriault MOVED to report HCS CS SB 46 (FIN)
out of Committee with individual recommendations and with
the accompanying fiscal notes. There being NO OBJECTIONS,
it was so ordered.
HCS CS SB 46 (FIN) was reported out of Committee with "no
recommendations" and with zero fiscal notes by the
Department of Public Safety, the Department of Environmental
Conservation dated 4/25/94, the Department of Fish and Game
dated 4/25/94, and a fiscal impact note by the Department of
Natural Resources dated 4/24/94.
ADJOURNMENT
The meeting adjourned at 5:30 P.M.
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