Legislature(1993 - 1994)
05/07/1994 02:15 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 7, 1994
2:15 P.M.
TAPE HFC 94 - 163, Side 2, #000 - end.
TAPE HFC 94 - 164, Side 1, #000 - end.
TAPE HFC 94 - 164, Side 2, #000 - end.
TAPE HFC 94 - 165, Side 1, #000 - #335.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 2:15 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
Joshua Fink, Staff, Senator Tim Kelly; Dan Hickey, Alaska
Railroad Corporation, Anchorage; Rick Solie, Staff, Senator
Steve Frank; Thomas Boutin, Director, Division of Forestry,
Department of Natural Resources; McKie Campbell, Deputy
Commissioner, Department of Fish and Game; Mark LoPatin,
LoPatin & Co., West Bloomfield, Michigan.
SUMMARY
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.
CS SB 310 (FIN) was HELD in Committee for further
discussion.
SB 338 An Act relating to the issuance of revenue bonds
for acquisition and construction of the Alaska
Discovery Center for the Ship Creek Project in
Anchorage; relating to a study of the feasibility
and financial viability of the Alaska Discovery
Center; relating to construction of the Alaska
1
Discovery Center; and providing for an effective
date.
CS SB 338 (FIN) was reported out of Committee with
"no recommendations" and with a zero fiscal note
by the Department of Revenue dated 3/02/94.
SENATE BILL 338
"An Act relating to the issuance of revenue bonds for
acquisition and construction of the Alaska Discovery
Center for the Ship Creek Project in Anchorage;
relating to a study of the feasibility and financial
viability of the Alaska Discovery Center; relating to
construction of the Alaska Discovery Center; and
providing for an effective date."
JOSHUA FINK, STAFF, SENATOR TIM KELLY, explained that the
Alaska Railroad Corporation (ARRC) has a unique and rare
federal authorization to issue non-recourse revenue bonds
for private as well as public interests. SB 338 would
authorize ARRC to sell $55 million dollars in non-recourse
revenue bonds to be loaned to a public or private entity for
the acquisition, design and construction of the Northern
Discovery Center at Ship Creek Landings if the following
conditions were met:
1. The potential developer pays for a feasibility and
financial viability study to be performed by a
person/business selected by the ARRC.
2. The ARRC board of directors reviews the
feasibility study and determines the project is
viable.
Mr. Fink added that the payment of the bonds and interest
would be made solely with assets and revenues received from
the owner/operators of the facility, and that ARRC was
prohibited from using any other financing or financial
vehicle to repay the bonds. He concluded that prior to the
start of construction, the developer must post a payment and
completion bond in favor of ARRC.
Representative Brown asked if the study was necessary before
the bonds could be issued. Mr. Fink explained that in
Section #1, Line #11, the inclusion of "if" would establish
the condition: "They are allowed to issue the bonds if the
Board of Directors determines after completion of the study
conducted in Section #7".
Representative Brown questioned why authorization was being
granted for $55 million dollars when only $40 million was
2
needed. Mr. Fink replied that the language would clarify
that "Not more than $55 million dollars" would be required.
He stressed that $55 million would be the ceiling.
MARK LOPATIN, LOPATIN & COMPANY, WEST BLOOMFIELD, MICHIGAN,
echoed that $55 million would be the project ceiling.
Representative Martin asked the bonding value of the Alaska
Railroad.
MARK HICKEY, ALASKA RAILROAD CORPORATION, ANCHORAGE,
commented that provisions made in the 1988 State law would
require a five year amendment, although, currently there is
no specific mandate. The legislative intent would be to
dispose of the railroad. Mr. Hickey said federal
requirement provides that if the railroad is sold,
arrangements for right-of-way would be made. He indicated
that these provisions are not relevant to the bond issue
before the Committee.
Representative Brown asked the agreement terms between the
government of St. Petersburg and the Northern Crossroads
Discovery Center and if there was expectation for State
support for the project. She stated there would be a public
subsidy involved in the facility's construction. Mr.
LoPatin briefed the Committee that there was no need for a
government subsidy for the development or construction of
Discovery Center. Following construction, it will become a
private venture between the Discovery Center and the Museum
of St. Petersburg.
Representative Brown questioned if the Discovery Center
would be compensating St. Petersburg for the loan of
materials. Mr. LoPatin understood that the length of the
agreement would be thirty five years and that the terms
would be provided by a letter of intent between the two
interests. Discovery Center will pay the Russian Museums
for contributing materials and displaying them. He added
that the specifics have not yet been agreed upon.
Co-Chair MacLean pointed out that the project was similar to
a previously vetoed project - the Alaska Heritage Park. Mr.
Fink advised that the projects were substantially different.
Representative Martin questioned the collateral used. Mr.
LoPatin explained that the collateral used would not be an
obligation to the Alaska Railroad. Representative Hanley
clarified that if the bonds were not backed, no one in the
bond market would purchase them.
Representative Brown warned that a comprehensive traffic
3
analysis should be under-taken in order to address the
effect on port and railroad traffic. Mr. LoPatin reminded
Committee members that $5.5 million dollars match would be
provided through development of the World Trade Center. The
cost of the World Trade Center and Hotel is expected to be
$80 million dollars. The plans continue to move forward in
anticipation of including the Discovery Center.
Representative Hanley MOVED to report CS SB 338 (FIN) out of
Committee with individual recommendations and with the
accompanying zero fiscal note. There being NO OBJECTIONS,
it was so ordered.
CS SB 338 (FIN) was reported out of Committee with "no
recommendations" and with a fiscal note by the Department of
Revenue dated 3/02/94.
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."
Representative Therriault MOVED to adopt HFC CS SB 310
(FIN), #8-LS1558\M, dated 5/07/94, as the version before the
Committee. The work draft was prepared to include the first
twenty-four amendments addressed in Subcommittee. There
being NO OBJECTIONS, it was adopted.
[Copies of the amendments are on file].
Representative Therriault MOVED to adopt Amendment #7.
Representative Brown asked for further explanation of the
relationship between the process indicated in the
legislation and the best interest determination of the
findings.
RICK SOLIE, STAFF, SENATOR STEVE FRANK, explained that the
provisions in SB 310 would apply and that the best interest
findings would be made prior to a FMA under the general land
classification process.
THOMAS BOUTIN, DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF
NATURAL RESOURCES, agreed with Mr. Solie. There being NO
OBJECTIONS, Amendment #7 was adopted.
Co-Chair MacLean MOVED to adopt Amendment #16. She thought
that there should be legislative approval of any FMA land
4
sales. Large scale land disposal should be approved by the
Legislature.
Representative Therriault OBJECTED noting that amendments
had already been included which accept that all state
agencies, including the Commissioner of Fish and Game, would
have the right to review the final document.
Co-Chair MacLean disagreed, pointing out that a new
precedence was begun by establishing land disposal for
timber harvesting and at the same time would establish a
track record for operations.
Representative Parnell opposed injecting the political
process to one which he thought should create a more
scientific and economic determination. Representative Brown
spoke in support of the amendment.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Brown, Grussendorf,
MacLean, Larson.
OPPOSED: Hanley, Hoffman, Parnell, Therriault,
Foster.
The MOTION PASSED (6-5).
(Tape Change, HFC 94-164, Side 1).
Representative Grussendorf MOVED to adopt Amendment #23
which would reincorporate the Department of Fish and Game in
the legislation. Representative Therriault noted that
Senator Frank supported the amendment. Representative Brown
commented that ten days was too short of a time for review
of the final agreement.
MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND
GAME, acknowledged that if the Department of Fish and Game
was involved that they should be able to do a turn around in
ten days. There being NO OBJECTIONS to Amendment #23, it
was adopted.
Co-Chair Larson MOVED TO RESCIND previous action taken on
Amendment #16 and MOVED an additional language change as
follows:
"Within ten days of the convening of a regular
legislative session, the Governor shall transmit
to the President of the Senate and the Speaker of
the House of Representatives, any proposed final
forest management agreement. If the legislature,
by joint resolution, fails to disapprove the final
forest management agreement within 45 days, it is
5
considered approved".
Co-Chair MacLean spoke in support of the language change.
Representative Brown thought that 45 days would not be
enough time to go through both Houses of the Legislature.
Representative Navarre OBJECTED to the language change.
A roll call vote was taken on the MOTION to rescind previous
action.
IN FAVOR: Martin, Parnell, Therriault, Foster,
Hanley, Larson, MacLean.
OPPOSED: Hoffman, Navarre, Brown, Grussendorf.
The MOTION PASSED (7-4).
Co-Chair MacLean MOVED to adopt the new language for
Amendment #16 as provided by Representative Larson.
Representative Navarre MOVED TO AMEND the language by adding
that: "The Legislature must vote within forty-five days, or
it will be considered dead". Co-Chair MacLean OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, Larson, MacLean.
The MOTION FAILED (4-7).
Representative Martin OBJECTED to adopting the new Amendment
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Parnell, Therriault, Brown,
Foster, Grussendorf, Hanley, Hoffman,
Larson, MacLean.
OPPOSED: Martin.
The MOTION PASSED (10-1).
Representative Brown MOVED to adopt Amendment #24 which
would restore the necessary contents to statute of a forest
use land plan. Mr. Boutin advised that the drafting deleted
the immediate and long term effects of forest activities.
Mr. Solie added that small timber operators want a site
specific forest plan.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre.
6
OPPOSED: Therriault, Foster, Hanley, Martin,
Parnell, Larson.
Co-Chair MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED TO WITHDRAW Amendments #26 & #27.
There being NO OBJECTIONS, they were withdrawn from
consideration.
Representative Brown MOVED to adopt Amendment #28 which
would clearly define that subsistence and personal,
recreational and commercial uses of fish and wildlife are
among the uses of forest land for non timber purposes that
must be considered by the Commissioner. Mr. Boutin agreed
that it would be important to accommodate those concerns.
There being NO OBJECTIONS to Amendment #28, it was adopted.
Representative Brown MOVED to adopt Amendment #29 requesting
to withdrawn the portion relating to Section (10). Mr.
Boutin commented that the proposed language would improve
the drafting of the legislation. There being NO OBJECTIONS,
it was adopted.
Representative Brown MOVED to adopt Amendment #30. There
being NO OBJECTIONS, it was adopted.
Representative Brown MOVED to adopt Amendment #31 which
would add "or" providing that the land use plan was
consistent with one or the other land use plans. Mr. Boutin
advised the language would be an improvement to current
wording. There being NO OBJECTIONS, it was adopted.
Representative Brown MOVED to adopt Amendment #32 which
would add a new sentence at the end of the existing
Subsection (f) and that would insure that public review
includes the (g) (1) & (2) provisions. Mr. Boutin noted
that the timing for providing information for public process
was important and that he agreed to the proposed amendment.
There being NO OBJECTIONS, it was adopted.
Representative Brown MOVED TO WITHDRAW Amendments #33 - #36
pointing out that they had been addressed by other
amendments adopted in subcommittee. There being NO
OBJECTIONS, they were withdrawn.
Representative Brown MOVED to adopt Amendment #37.
(Tape Change, HFC 94-164, Side 2).
Representative Brown explained that Amendment #37 would
7
provide that the operational level force inventory be every
two years instead of every five years and that it include
provisions to adjust harvest plans.
Mr. Boutin replied that the cost benefit could not be
increased with only an update. Representative Brown
recommended adding language to the portion of the amendment
on Page 7, Line 31, by inserting "update of the" before the
"operational force inventory every two years". Mr. Solie
stressed that they could not comply with a sustained yield
without having an inventory prior to a timber sale.
Representative Brown MOVED to divide the question and then
to amend Amendment #37 by adding the previous referenced
language. There being NO OBJECTIONS to the language
addition in Amendment #37(a), it was added.
Representative Brown MOVED to adopt Amendment #37(b) which
would insert provisions to adjust the harvest plans based on
the information provided by the inventory. Mr. Boutin
informed Committee members that the language was not clear.
Representative Martin OBJECTED to adopting Amendment #37(b).
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre,
Larson.
OPPOSED: Foster, Hanley, Martin, Parnell,
Therriault.
Co-Chair MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Brown MOVED to adopt Amendment #38 which
would add a new subsection providing that if the final
agreement differs from the proposed agreement then the
Commissioner must provide a written finding. Mr. Solie
supported the intent of the amendment and suggested
inserting "significantly" following the language "if the
final agreement differs". Representative Brown MOVED TO
AMEND Amendment #38 by adding "significantly" to the first
line. There being NO OBJECTIONS, it was adopted.
Representative Therriault OBJECTED to adopting the amended
Amendment #38.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Navarre, Brown.
OPPOSED: Foster, Hanley, Martin, Parnell,
Therriault, Larson.
8
Co-Chair MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED TO WITHDRAW Amendment #39. There
being NO OBJECTION, it was withdrawn.
Representative Brown MOVED to adopt Amendment #40 which
would delete all material on Page 8 from Line 16-20. She
pointed out that material had been covered under the first
sentence of Subsection (i). There being NO OBJECTION, it
was adopted.
Representative Brown MOVED TO WITHDRAW Amendment #41. There
being NO OBJECTION, it was withdrawn.
Representative Brown MOVED to adopt Amendment #42 which
would add a new subsection which would clarify that when an
operator seeks concessions from the State, the Commissioner
shall determine whether the concessions are necessary to
protect the public interest and that language would address
royalty oil concerns.
Mr. Boutin asked if the measure would be cost effective. He
recommended inserting "concession". Representative Brown
recommended deleting "from a provision or" and inserting
"affecting the consideration paid under the agreement"
providing a monetary term. Mr. Solie noted concern that the
public notice would occur with small changes in the
contract.
Representative Brown felt that such a policy would be
important in a twenty year process and that it would be in
the best interest of the State. She MOVED TO AMEND the
language as proposed in Amendment #42. There being NO
OBJECTIONS, the language was amended.
Mr. Solie requested deletion of the last sentence, "Proposed
changes to a forest management agreement are subject to the
public notice and comment requirements under AS
38.05.122(b)-(i)". Co-Chair Larson MOVED TO AMEND Amendment
OBJECTIONS, the amendment was amended.
Representative Brown MOVED TO WITHDRAW Amendment #42. There
being NO OBJECTIONS, it was withdrawn.
Representative Brown MOVED to adopt Amendment #43 which
would address the forest practices act. Representative
Therriault OBJECTED.
9
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre, Brown, MacLean.
OPPOSED: Hanley, Hoffman, Martin, Parnell,
Therriault, Foster, Larson.
The MOTION FAILED (4-7).
Representative Brown MOVED to adopt Amendment #44 which
would state the ground rules and the operational plans being
reviewed under the forest management plans or the forest
management agreement. She urged that the public be involved
in that process. Mr. Solie spoke in opposition to the
amendment. He reminded Committee members that agencies
would be involved in the forest practices act. Title #41
clarifies that the agencies would have oversight throughout
that period of time. He added that the level of scrutiny
provided within the amendment was not necessary.
Representative Brown argued that any plan made for twenty
years should be detailed at the time it is drawn up.
(Tape Change, HFC 94-165, Side 1).
Mr. Boutin explained that Title #41 currently would address
those concerns.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Hoffman, Navarre, Brown.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Foster, Grussendorf, MacLean, Larson.
The MOTION FAILED (3-8).
Representative Brown MOVED to adopt Amendment #45 which
would insert a new Section (G). The amendment would address
those items left out of the forest management agreement.
Mr. Solie thought that provision had been more adequately
addressed on Page 7, Line 6. Representative Brown indicated
that language referenced by Mr. Solie would clarify who is
responsible for paying for the roads but would not state the
location or construction standards used for building.
Mr. Solie proposed an amendment which would delete
"maintained and paid for by the proposer" and would simply
require provisions for construction standards.
Representative Parnell suggested deleting all material after
the word "agreement" in Line #2. Representative Brown MOVED
TO AMEND Amendment #45 by deleting the language proposed by
Representative Parnell. There being NO OBJECTIONS, it was
so ordered.
10
There being NO OBJECTION, Amendment #45 was adopted as
amended.
Representative Brown MOVED to adopt Amendment #46 which
would delete language on the new subsection to Section #7
relating to managing state forest, including the
responsibilities of the Commissioner. Mr. Boutin replied
that except for safety reasons, DNR would not need to become
involved. He noted concern with removal of that language.
Representative Martin OBJECTED, stating that the addition of
the clause would not allow the state to protect their
assets. Representative Brown MOVED TO AMEND Amendment #46,
deleting "carry off purposes of this chapter" and inserting
"of public safety".
A roll call vote was taken on the MOTION TO AMEND.
IN FAVOR: Hoffman, Navarre, Parnell, Therriault,
Brown, Grussendorf, Larson, MacLean.
OPPOSED: Martin, Foster, Hanley.
The MOTION PASSED (8-3).
Representative Navarre MOVED TO ADD additional language
inserting after "of the public". Representative Parnell
OBJECTED.
A roll call vote was taken on the MOTION TO AMEND.
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman,
Larson.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, MacLean.
The MOTION FAILED (5-6).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman,
MacLean.
OPPOSED: Parnell, Therriault, Foster, Hanley,
Martin, Larson.
The MOTION FAILED (5-6).
SB 310 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 4:40 P.M.
11
HOUSE FINANCE COMMITTEE
May 7, 1994
2:15 P.M.
TAPE HFC 94 - 163, Side 2, #000 - end.
TAPE HFC 94 - 164, Side 1, #000 - end.
TAPE HFC 94 - 164, Side 2, #000 - end.
TAPE HFC 94 - 165, Side 1, #000 - #335.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 2:15 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
Joshua Fink, Staff, Senator Tim Kelly; Dan Hickey, Alaska
Railroad Corporation, Anchorage; Rick Solie, Staff, Senator
Steve Frank; Thomas Boutin, Director, Division of Forestry,
Department of Natural Resources; McKie Campbell, Deputy
Commissioner, Department of Fish and Game; Mark LoPatin,
LoPatin & Co., West Bloomfield, Michigan.
SUMMARY
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.
CS SB 310 (FIN) was HELD in Committee for further
discussion.
SB 338 An Act relating to the issuance of revenue bonds
for acquisition and construction of the Alaska
Discovery Center for the Ship Creek Project in
Anchorage; relating to a study of the feasibility
and financial viability of the Alaska Discovery
Center; relating to construction of the Alaska
12
Discovery Center; and providing for an effective
date.
CS SB 338 (FIN) was reported out of Committee with
"no recommendations" and with a zero fiscal note
by the Department of Revenue dated 3/02/94.
SENATE BILL 338
"An Act relating to the issuance of revenue bonds for
acquisition and construction of the Alaska Discovery
Center for the Ship Creek Project in Anchorage;
relating to a study of the feasibility and financial
viability of the Alaska Discovery Center; relating to
construction of the Alaska Discovery Center; and
providing for an effective date."
JOSHUA FINK, STAFF, SENATOR TIM KELLY, explained that the
Alaska Railroad Corporation (ARRC) has a unique and rare
federal authorization to issue non-recourse revenue bonds
for private as well as public interests. SB 338 would
authorize ARRC to sell $55 million dollars in non-recourse
revenue bonds to be loaned to a public or private entity for
the acquisition, design and construction of the Northern
Discovery Center at Ship Creek Landings if the following
conditions were met:
1. The potential developer pays for a feasibility and
financial viability study to be performed by a
person/business selected by the ARRC.
2. The ARRC board of directors reviews the
feasibility study and determines the project is
viable.
Mr. Fink added that the payment of the bonds and interest
would be made solely with assets and revenues received from
the owner/operators of the facility, and that ARRC was
prohibited from using any other financing or financial
vehicle to repay the bonds. He concluded that prior to the
start of construction, the developer must post a payment and
completion bond in favor of ARRC.
Representative Brown asked if the study was necessary before
the bonds could be issued. Mr. Fink explained that in
Section #1, Line #11, the inclusion of "if" would establish
the condition: "They are allowed to issue the bonds if the
Board of Directors determines after completion of the study
conducted in Section #7".
Representative Brown questioned why authorization was being
granted for $55 million dollars when only $40 million was
13
needed. Mr. Fink replied that the language would clarify
that "Not more than $55 million dollars" would be required.
He stressed that $55 million would be the ceiling.
MARK LOPATIN, LOPATIN & COMPANY, WEST BLOOMFIELD, MICHIGAN,
echoed that $55 million would be the project ceiling.
Representative Martin asked the bonding value of the Alaska
Railroad.
MARK HICKEY, ALASKA RAILROAD CORPORATION, ANCHORAGE,
commented that provisions made in the 1988 State law would
require a five year amendment, although, currently there is
no specific mandate. The legislative intent would be to
dispose of the railroad. Mr. Hickey said federal
requirement provides that if the railroad is sold,
arrangements for right-of-way would be made. He indicated
that these provisions are not relevant to the bond issue
before the Committee.
Representative Brown asked the agreement terms between the
government of St. Petersburg and the Northern Crossroads
Discovery Center and if there was expectation for State
support for the project. She stated there would be a public
subsidy involved in the facility's construction. Mr.
LoPatin briefed the Committee that there was no need for a
government subsidy for the development or construction of
Discovery Center. Following construction, it will become a
private venture between the Discovery Center and the Museum
of St. Petersburg.
Representative Brown questioned if the Discovery Center
would be compensating St. Petersburg for the loan of
materials. Mr. LoPatin understood that the length of the
agreement would be thirty five years and that the terms
would be provided by a letter of intent between the two
interests. Discovery Center will pay the Russian Museums
for contributing materials and displaying them. He added
that the specifics have not yet been agreed upon.
Co-Chair MacLean pointed out that the project was similar to
a previously vetoed project - the Alaska Heritage Park. Mr.
Fink advised that the projects were substantially different.
Representative Martin questioned the collateral used. Mr.
LoPatin explained that the collateral used would not be an
obligation to the Alaska Railroad. Representative Hanley
clarified that if the bonds were not backed, no one in the
bond market would purchase them.
Representative Brown warned that a comprehensive traffic
14
analysis should be under-taken in order to address the
effect on port and railroad traffic. Mr. LoPatin reminded
Committee members that $5.5 million dollars match would be
provided through development of the World Trade Center. The
cost of the World Trade Center and Hotel is expected to be
$80 million dollars. The plans continue to move forward in
anticipation of including the Discovery Center.
Representative Hanley MOVED to report CS SB 338 (FIN) out of
Committee with individual recommendations and with the
accompanying zero fiscal note. There being NO OBJECTIONS,
it was so ordered.
CS SB 338 (FIN) was reported out of Committee with "no
recommendations" and with a fiscal note by the Department of
Revenue dated 3/02/94.
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."
Representative Therriault MOVED to adopt HFC CS SB 310
(FIN), #8-LS1558\M, dated 5/07/94, as the version before the
Committee. The work draft was prepared to include the first
twenty-four amendments addressed in Subcommittee. There
being NO OBJECTIONS, it was adopted.
[Copies of the amendments are on file].
Representative Therriault MOVED to adopt Amendment #7.
Representative Brown asked for further explanation of the
relationship between the process indicated in the
legislation and the best interest determination of the
findings.
RICK SOLIE, STAFF, SENATOR STEVE FRANK, explained that the
provisions in SB 310 would apply and that the best interest
findings would be made prior to a FMA under the general land
classification process.
THOMAS BOUTIN, DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF
NATURAL RESOURCES, agreed with Mr. Solie. There being NO
OBJECTIONS, Amendment #7 was adopted.
Co-Chair MacLean MOVED to adopt Amendment #16. She thought
that there should be legislative approval of any FMA land
15
sales. Large scale land disposal should be approved by the
Legislature.
Representative Therriault OBJECTED noting that amendments
had already been included which accept that all state
agencies, including the Commissioner of Fish and Game, would
have the right to review the final document.
Co-Chair MacLean disagreed, pointing out that a new
precedence was begun by establishing land disposal for
timber harvesting and at the same time would establish a
track record for operations.
Representative Parnell opposed injecting the political
process to one which he thought should create a more
scientific and economic determination. Representative Brown
spoke in support of the amendment.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Brown, Grussendorf,
MacLean, Larson.
OPPOSED: Hanley, Hoffman, Parnell, Therriault,
Foster.
The MOTION PASSED (6-5).
(Tape Change, HFC 94-164, Side 1).
Representative Grussendorf MOVED to adopt Amendment #23
which would reincorporate the Department of Fish and Game in
the legislation. Representative Therriault noted that
Senator Frank supported the amendment. Representative Brown
commented that ten days was too short of a time for review
of the final agreement.
MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND
GAME, acknowledged that if the Department of Fish and Game
was involved that they should be able to do a turn around in
ten days. There being NO OBJECTIONS to Amendment #23, it
was adopted.
Co-Chair Larson MOVED TO RESCIND previous action taken on
Amendment #16 and MOVED an additional language change as
follows:
"Within ten days of the convening of a regular
legislative session, the Governor shall transmit
to the President of the Senate and the Speaker of
the House of Representatives, any proposed final
forest management agreement. If the legislature,
by joint resolution, fails to disapprove the final
forest management agreement within 45 days, it is
16
considered approved".
Co-Chair MacLean spoke in support of the language change.
Representative Brown thought that 45 days would not be
enough time to go through both Houses of the Legislature.
Representative Navarre OBJECTED to the language change.
A roll call vote was taken on the MOTION to rescind previous
action.
IN FAVOR: Martin, Parnell, Therriault, Foster,
Hanley, Larson, MacLean.
OPPOSED: Hoffman, Navarre, Brown, Grussendorf.
The MOTION PASSED (7-4).
Co-Chair MacLean MOVED to adopt the new language for
Amendment #16 as provided by Representative Larson.
Representative Navarre MOVED TO AMEND the language by adding
that: "The Legislature must vote within forty-five days, or
it will be considered dead". Co-Chair MacLean OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, Larson, MacLean.
The MOTION FAILED (4-7).
Representative Martin OBJECTED to adopting the new Amendment
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Parnell, Therriault, Brown,
Foster, Grussendorf, Hanley, Hoffman,
Larson, MacLean.
OPPOSED: Martin.
The MOTION PASSED (10-1).
Representative Brown MOVED to adopt Amendment #24 which
would restore the necessary contents to statute of a forest
use land plan. Mr. Boutin advised that the drafting deleted
the immediate and long term effects of forest activities.
Mr. Solie added that small timber operators want a site
specific forest plan.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre.
17
OPPOSED: Therriault, Foster, Hanley, Martin,
Parnell, Larson.
Co-Chair MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED TO WITHDRAW Amendments #26 & #27.
There being NO OBJECTIONS, they were withdrawn from
consideration.
Representative Brown MOVED to adopt Amendment #28 which
would clearly define that subsistence and personal,
recreational and commercial uses of fish and wildlife are
among the uses of forest land for non timber purposes that
must be considered by the Commissioner. Mr. Boutin agreed
that it would be important to accommodate those concerns.
There being NO OBJECTIONS to Amendment #28, it was adopted.
Representative Brown MOVED to adopt Amendment #29 requesting
to withdrawn the portion relating to Section (10). Mr.
Boutin commented that the proposed language would improve
the drafting of the legislation. There being NO OBJECTIONS,
it was adopted.
Representative Brown MOVED to adopt Amendment #30. There
being NO OBJECTIONS, it was adopted.
Representative Brown MOVED to adopt Amendment #31 which
would add "or" providing that the land use plan was
consistent with one or the other land use plans. Mr. Boutin
advised the language would be an improvement to current
wording. There being NO OBJECTIONS, it was adopted.
Representative Brown MOVED to adopt Amendment #32 which
would add a new sentence at the end of the existing
Subsection (f) and that would insure that public review
includes the (g) (1) & (2) provisions. Mr. Boutin noted
that the timing for providing information for public process
was important and that he agreed to the proposed amendment.
There being NO OBJECTIONS, it was adopted.
Representative Brown MOVED TO WITHDRAW Amendments #33 - #36
pointing out that they had been addressed by other
amendments adopted in subcommittee. There being NO
OBJECTIONS, they were withdrawn.
Representative Brown MOVED to adopt Amendment #37.
(Tape Change, HFC 94-164, Side 2).
Representative Brown explained that Amendment #37 would
18
provide that the operational level force inventory be every
two years instead of every five years and that it include
provisions to adjust harvest plans.
Mr. Boutin replied that the cost benefit could not be
increased with only an update. Representative Brown
recommended adding language to the portion of the amendment
on Page 7, Line 31, by inserting "update of the" before the
"operational force inventory every two years". Mr. Solie
stressed that they could not comply with a sustained yield
without having an inventory prior to a timber sale.
Representative Brown MOVED to divide the question and then
to amend Amendment #37 by adding the previous referenced
language. There being NO OBJECTIONS to the language
addition in Amendment #37(a), it was added.
Representative Brown MOVED to adopt Amendment #37(b) which
would insert provisions to adjust the harvest plans based on
the information provided by the inventory. Mr. Boutin
informed Committee members that the language was not clear.
Representative Martin OBJECTED to adopting Amendment #37(b).
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre,
Larson.
OPPOSED: Foster, Hanley, Martin, Parnell,
Therriault.
Co-Chair MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Brown MOVED to adopt Amendment #38 which
would add a new subsection providing that if the final
agreement differs from the proposed agreement then the
Commissioner must provide a written finding. Mr. Solie
supported the intent of the amendment and suggested
inserting "significantly" following the language "if the
final agreement differs". Representative Brown MOVED TO
AMEND Amendment #38 by adding "significantly" to the first
line. There being NO OBJECTIONS, it was adopted.
Representative Therriault OBJECTED to adopting the amended
Amendment #38.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Navarre, Brown.
OPPOSED: Foster, Hanley, Martin, Parnell,
Therriault, Larson.
19
Co-Chair MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED TO WITHDRAW Amendment #39. There
being NO OBJECTION, it was withdrawn.
Representative Brown MOVED to adopt Amendment #40 which
would delete all material on Page 8 from Line 16-20. She
pointed out that material had been covered under the first
sentence of Subsection (i). There being NO OBJECTION, it
was adopted.
Representative Brown MOVED TO WITHDRAW Amendment #41. There
being NO OBJECTION, it was withdrawn.
Representative Brown MOVED to adopt Amendment #42 which
would add a new subsection which would clarify that when an
operator seeks concessions from the State, the Commissioner
shall determine whether the concessions are necessary to
protect the public interest and that language would address
royalty oil concerns.
Mr. Boutin asked if the measure would be cost effective. He
recommended inserting "concession". Representative Brown
recommended deleting "from a provision or" and inserting
"affecting the consideration paid under the agreement"
providing a monetary term. Mr. Solie noted concern that the
public notice would occur with small changes in the
contract.
Representative Brown felt that such a policy would be
important in a twenty year process and that it would be in
the best interest of the State. She MOVED TO AMEND the
language as proposed in Amendment #42. There being NO
OBJECTIONS, the language was amended.
Mr. Solie requested deletion of the last sentence, "Proposed
changes to a forest management agreement are subject to the
public notice and comment requirements under AS
38.05.122(b)-(i)". Co-Chair Larson MOVED TO AMEND Amendment
OBJECTIONS, the amendment was amended.
Representative Brown MOVED TO WITHDRAW Amendment #42. There
being NO OBJECTIONS, it was withdrawn.
Representative Brown MOVED to adopt Amendment #43 which
would address the forest practices act. Representative
Therriault OBJECTED.
20
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre, Brown, MacLean.
OPPOSED: Hanley, Hoffman, Martin, Parnell,
Therriault, Foster, Larson.
The MOTION FAILED (4-7).
Representative Brown MOVED to adopt Amendment #44 which
would state the ground rules and the operational plans being
reviewed under the forest management plans or the forest
management agreement. She urged that the public be involved
in that process. Mr. Solie spoke in opposition to the
amendment. He reminded Committee members that agencies
would be involved in the forest practices act. Title #41
clarifies that the agencies would have oversight throughout
that period of time. He added that the level of scrutiny
provided within the amendment was not necessary.
Representative Brown argued that any plan made for twenty
years should be detailed at the time it is drawn up.
(Tape Change, HFC 94-165, Side 1).
Mr. Boutin explained that Title #41 currently would address
those concerns.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Hoffman, Navarre, Brown.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Foster, Grussendorf, MacLean, Larson.
The MOTION FAILED (3-8).
Representative Brown MOVED to adopt Amendment #45 which
would insert a new Section (G). The amendment would address
those items left out of the forest management agreement.
Mr. Solie thought that provision had been more adequately
addressed on Page 7, Line 6. Representative Brown indicated
that language referenced by Mr. Solie would clarify who is
responsible for paying for the roads but would not state the
location or construction standards used for building.
Mr. Solie proposed an amendment which would delete
"maintained and paid for by the proposer" and would simply
require provisions for construction standards.
Representative Parnell suggested deleting all material after
the word "agreement" in Line #2. Representative Brown MOVED
TO AMEND Amendment #45 by deleting the language proposed by
Representative Parnell. There being NO OBJECTIONS, it was
so ordered.
21
There being NO OBJECTION, Amendment #45 was adopted as
amended.
Representative Brown MOVED to adopt Amendment #46 which
would delete language on the new subsection to Section #7
relating to managing state forest, including the
responsibilities of the Commissioner. Mr. Boutin replied
that except for safety reasons, DNR would not need to become
involved. He noted concern with removal of that language.
Representative Martin OBJECTED, stating that the addition of
the clause would not allow the state to protect their
assets. Representative Brown MOVED TO AMEND Amendment #46,
deleting "carry off purposes of this chapter" and inserting
"of public safety".
A roll call vote was taken on the MOTION TO AMEND.
IN FAVOR: Hoffman, Navarre, Parnell, Therriault,
Brown, Grussendorf, Larson, MacLean.
OPPOSED: Martin, Foster, Hanley.
The MOTION PASSED (8-3).
Representative Navarre MOVED TO ADD additional language
inserting after "of the public". Representative Parnell
OBJECTED.
A roll call vote was taken on the MOTION TO AMEND.
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman,
Larson.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, MacLean.
The MOTION FAILED (5-6).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman,
MacLean.
OPPOSED: Parnell, Therriault, Foster, Hanley,
Martin, Larson.
The MOTION FAILED (5-6).
SB 310 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 4:40 P.M.
22
| Document Name | Date/Time | Subjects |
|---|