Legislature(1993 - 1994)

05/05/1994 01:30 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     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.                                                              
                                                                               
                                1                                              
                                                                               
                                                                               
            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;                 
                                                                               
                                2                                              
                                                                               
                                                                               
            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                 
                                                                               
                                3                                              
                                                                               
                                                                               
  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.                 
                                                                               
                                9                                              
                                                                               
                                                                               
  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                 
                                                                               
                               10                                              
                                                                               
                                                                               
  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).                                                     
                                                                               
                               12                                              
                                                                               
                                                                               
  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                 
                                                                               
                               13                                              
                                                                               
                                                                               
  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                 
                                                                               
                               14                                              
                                                                               
                                                                               
  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                                                                
                                                                               
                               15                                              
                                                                               
                                                                               
  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                 
                                                                               
                               18                                              
                                                                               
                                                                               
  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.                                           
                                                                               
                                                                               
                               30                                              

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