SENATE BILL NO. 180                                                          
                                                                               
       "An Act authorizing the  commissioner of the Department                 
       of Natural Resources to negotiate and enter into timber                 
       sale contracts that  provide for  local manufacture  of                 
       high  value-added wood  products;  and establishing  an                 
       Alaska Forest  Products Research and  Marketing Program                 
       within  the   Department  of   Commerce  and   Economic                 
                                                                               
                                6                                              
                                                                               
                                                                               
       Development."                                                           
                                                                               
  TOM BOUTIN,  DIRECTOR, DIVISION  OF FORESTRY,  DEPARTMENT OF                 
  NATURAL RESOURCES spoke in support of SB 180.  He noted that                 
  the Committee has reviewed the House version, HB 344.                        
                                                                               
  (Tape Change, HFC 96-155, Side 2)                                            
                                                                               
  Mr.  Boutin explained that  the Administration  supports the                 
  deletion of amendments made in the Senate Finance Committee.                 
  He  provided  members  with  Amendment  1  (copy  on  file).                 
  Amendment  1  would deleted  the  amendments adopted  by the                 
  Senate  Finance  Committee.   He  explained  that  the prior                 
  versions limited  regional contracts  to 3  per  year.   The                 
  Senate Finance Committee changed the limit to two.  He noted                 
  that the Administration supports  3 contracts per year.   He                 
  added that  Amendment 1  would reinstate  language requiring                 
  that the "area of  the sale must be designated  for forestry                 
  purposes by a  valid, existing  area plan."   He noted  that                 
  Kenai and parts of Southeast Alaska  do not have area plans.                 
  The amendment  would also  add, "the  existence of  adequate                 
  protection measures to ensure the sustainability of fish and                 
  wildlife  habitat and populations  and continuation of other                 
  uses of the area subject to the negotiated sale."                            
                                                                               
  Representative  Kelly  MOVED to  adopt  Amendment 1.   There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Representative  Kelly  MOVED  to  report  CSSB  180  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.                                                   
                                                                               
  HCS CSSB 180 (FIN) was reported  out of Committee with a "do                 
  pass" recommendation; and with  a fiscal impact note  by the                 
  Department of Natural  Resources, 4/26/96;  and with a  zero                 
  fiscal note by the University of Alaska, 4/22/96; and with a                 
  zero fiscal note by the Department of Community and Regional                 
  Affairs, 4/23/96.