Legislature(1993 - 1994)

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

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