HOUSE FINANCE COMMITTEE May 5, 1994 1:30 P.M. TAPE HFC 94 - 159, Side 1, #000 - end. TAPE HFC 94 - 159, Side 2, #000 - end. TAPE HFC 94 - 160, Side 1, #000 - end. TAPE HFC 94 - 160, Side 2, #000 - end. TAPE HFC 94 - 161, Side 1, #000 - #87. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 1:30 P.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Foster ALSO PRESENT Representative David Finkelstein; Representative Bill Williams; McKie Campbell, Deputy Commissioner, Department of Fish and Game; Frank Rue, Director, Habitat & Restoration Division, Department of Fish and Game; Wayne Regelin, Deputy Director, Wildlife Conservation, Department of Fish and Game; Donald Stolworthy, Director, Charitable Gaming Division, Department of Revenue; Chris Gates, Director, Division of Economic Development, Department of Commerce and Economic Development; Jerry Rheinwald, Self, Juneau; Tom Dow, Vice President, Princess Tours, Anchorage; Kate Troll, United Fishermen of Alaska (UFA), Juneau; Katya Kirsch, Alaska Environmental Lobby, Juneau; Rex Blazer, Self, Fairbanks; Ron Wolf, Chief Forester, Kluckwan Forest Products; Audrey Magoen, Self, Fairbanks; Barbara Kelly, Self, Juneau; Toby Wheeler, Self, Juneau; Bob Poe, Director, Division of Administrative Services, Department of Environmental Conservation; Dan Austin, Staff, Representative Kay Brown. SUMMARY SB 45 An Act relating to persons under 21 years of age; providing for designation of `safe homes' for runaway minors; and providing for an effective date. 1 SB 46 was reported out of Committee with "no recommendations" and with zero fiscal notes by the Department of Public Safety, the Department of Environmental Conservation dated 4/25/94, the Department of Fish and Game dated 4/25/94 and a fiscal impact note by the Department of Natural Resources dated 4/25/94. SB 310 An Act relating to the management and sale of state timber; relating to the classification of state land that would preclude harvesting of timber or would designate harvesting of timber as an incompatible use; relating to the administration of forest land, proposals for state forest, and the determination of sustained yield; and providing for an effective date. SB 310 was placed into Subcommittee with Representative Therriault as Chair and with members Representatives MacLean, Grussendorf, Foster, Brown and Parnell. SB 370 An Act providing an exemption from gambling laws for gambling conducted by cruise ships for their ticketed passengers in the offshore water of the state outside of ports; defining `cruise ship'; and providing for the licensing of certain cruise ships before they can conduct gambling in the offshore water of the state. HCS CS SB 370 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Revenue dated 5/21/94. SB 215 An Act relating to and redesignating the oil and hazardous substance release response fund and to its use in the event of a disaster emergency; repealing the authority in law by which marine highway vessels may be designed and constructed to aid in oil and hazardous substance spill cleanup in state marine water using money in the oil and hazardous substance release response fund; amending requirements relating to the revision of state and regional master prevention and contingency plans; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; amending the authority to contract to provide personnel to respond to a release or threatened release of oil or a hazardous substance and to contract to conduct spill related research; 2 reassigning responsibility for the oil and hazardous substance response corps and for the emergency response depots to the Department of Environmental Conservation, and for the operation of the state emergency response commission and its attendant responsibilities for the local emergency planning commissions to the Department of Military and Veterans' Affairs; and modifying definitions of terms relating to the preceding provisions; terminating the nickel-per-barrel oil conservation surcharge; levying and collecting two new oil surcharges; and providing for the suspension and reimposition of one of the new surcharges; and providing for an effective date. HCS CS SB 215 (FIN) was reported out of Committee with "no recommendation" and with a fiscal note by the Department of Revenue dated 4/27/94 and four zero fiscal notes by the Department of Law dated 4/27/94, the Department of Administration dated 4/27/94, the Department of Public Safety dated 4/27/94 and the Department of Environmental Conservation dated 4/27/94. SENATE BILL 46 "An Act authorizing moose farming." Co-Chair Larson briefed the Committee on the previous pending MOTION to move CS SB 46 (FIN) out of Committee. Co- Chair MacLean interrupted with questions for the Department of Fish and Game: 1. Was there a surplus of caribou in the State; 2. How the legislation would affect the Federal Reindeer Act of 1937; 3. Definition of surplus. WAYNE REGELIN, DEPUTY DIRECTOR, DIVISION OF WILDLIFE CONSERVATION, DEPARTMENT OF FISH AND GAME, responded that there are three large caribou herds in Alaska at this time. Caribou herds naturally cycle through "highs" and "lows", and many would say that there is a surplus at this time. He agreed that many people in Alaska depend on the Western Arctic Caribou herd for food. The Federal Reindeer Act passed in 1937 would affect the legislation in that it restricts ownership of reindeer to the Alaska Natives. The Act also defines "reindeer" as: "Any reindeer or caribou that are under animal husbandry". Consequently, any caribou placed in captivity, automatically under federal law would become a reindeer and would be 3 prohibited from ownership by anyone other than an Alaskan Native. Permits would only then be issued to Alaska Natives. Mr. Regelin explained that SB 46 would cause confusion within the Department of Fish and Game as hunters would want to get the caribou surplus and the Department would not be authorized to allow the issuance of permits. He added that "surplus" has not been defined to date. Co-Chair MacLean indicated that she opposed moving the bill from Committee until amendments had been made to the legislation to protect Native Alaskans. Co-Chair MacLean MOVED to adopt Amendment #1, #8-LS0371\S.1, Utermohle, 5/04/94. [Copy on file]. Amendment #1 would remove all reference to "caribou". Co-Chair Larson noted that CS SB 46 would be further discussed at the following meeting. Discussion followed regarding the Open Meetings Guideline and the amount of notice necessary to bring the bill back to Committee. SB 46 was HELD in Committee. SENATE BILL 310 "An Act relating to the management and sale of state timber; relating to the classification of state land that would preclude harvesting of timber or would designate harvesting of timber as an incompatible use; relating to the administration of forest land, proposals for state forest, and the determination of sustained yield; and providing for an effective date." Co-Chair Larson placed SB 310 into Subcommittee with Representative Therriault as Chair and with members Representatives MacLean and Grussendorf. KATE TROLL, UNITED FISHERMEN OF ALASKA (UFA), JUNEAU, testified in opposition to SB 310 which would go beyond establishing the Forest Management Agreements into making substantial modifications to the State Forest Practices Act. The bill would reduce the intent to manage state and municipal forest for multiple use and would weaken the forest planning and review process, while altering the requirement for reforestation on private land. She emphasized that the changes would be substantial to the State Forest Practices Act. Furthermore, the practices would come at a time when the Board of Forestry, a Board established to resolve issues relevant to the forest resources in the State, has 4 acknowledged that the State Forest Practices Act is working well and through a consensus negotiation states that the product does not need to be altered. Ms. Troll strongly recommended deleting all sections of SB 310 which alter the Forest Practices Act pointing out that UFA was a key player in the two years of negotiations that led to the State Forest Practices Act. She advised an additional concern of UFA was the application of the "sustained yield", Section #4, which calls for the continuation and expansion of business. She pointed out that "sustained yield" has been defined in statute as "continuity of harvest over annual periods". The proposed legislation would redefine "sustained yield", to be not just "continuity", but also "expansion of business". KATYA KIRSCH, EXECUTIVE ASSISTANT, ALASKA ENVIRONMENTAL LOBBY, JUNEAU, testified in opposition to SB 310 explaining that the forest management agreements will benefit corporations more than the State. She emphasized that the State should reconsider loosing money to subsidize removal of forest lands. SB 310 mandates long-term contracts for up to 20 years, with a renewal option for another 20 years. Long-term contracts, also called Forest Management Agreements (FMA's) will make timber harvest the priority on state forest lands, elevating timber over fisheries, wildlife, subsistence, tourism and recreation values. Ms. Kirsch added that long-term timber contracts are likely to have a negative impact on Alaska's economy and natural resources: 1. Long-term contracts are unhealthy for Alaska's pocket book. 2. Long-term contracts lock out future knowledge. 3. Timber-supply problems in order to fulfill long- term contracts will occur. 4. Long-term contracts and mills may endanger Alaskan communities economically and environmentally. 5. Industry should not manage state lands. Ms. Kirsch enumerated a number of alternatives to long-term contracts. 1. Maintain current timber sale length of three to five years which would allow DNR to update contracts as social values, economic situations, and biological information change. 5 2. This would allow reasonable certainty that interested purchasers will have a steady supply of timber to bid on at fair market value, without locking up resources for 20 years and without locking out other interested timber purchasers. 3. Encourage locally owned, value-added forest industries. REX BLAZER, REPRESENTING SELF, FAIRBANKS, spoke in opposition to SB 310 which allows the state forestry officials to sign long term contracts with timber companies. He pointed out that long term contracts have been proven unsustainable everywhere they are practiced. Mr. Blazer emphasized that the proposed legislation will weaken the Forest Practices Act due to: 1. No requirement for bonding. 2. No local hire guarantees. 3. No guarantee for value added. 4. No provision for biannual review. 5. No provision for requirements for operator paying cost of building. RON WOLF, CHIEF FORESTER, KLUCKWAN FOREST PRODUCTS, spoke in support of SB 310 which would amend Title #38 and #41 creating the establishment of Forest Management Agreements (FMA). He added that SB 310 will allow the Department of Natural Resources (DNR) to respond to forest health problems by allowing for limited emergency timber sales and the halting of serious epidemics before they become unmanageable. Mr. Wolf mentioned that main benefit of the legislation would be a reliable supply of wood for the industry to make capital investments. Mr. Wolf advised that the legislation would allow an entrance into Forest Management Agreements allowing for careful management of State forest lands and would bring positive returns to the state treasury by managing timber resources. Representative Grussendorf advised that he had received a memo from Board members from Mr. Wolf's corporation who recommended that there be no changes in the Forest Practices Act. Mr. Wolf responded that the amendments to Title #41 6 are largely clerical and the effect would not change the reforestation obligation to a landowner, although it would remove a confusing reference to sustained yield. (Tape Change, HFC 94-159, Side 2). AUDREY MAGOEN, REPRESENTING SELF, FAIRBANKS, spoke in opposition to the proposed legislation and provided the Committee with a set of "Flow Charts" which she drew in order to illustrate procedures between a regular commercial timber sale (as mandated by Alaska law) and the sale of timber through a Forest Management Agreement (FMA) as proposed by SB 310. [Copy on file]. Ms. Magoen elaborated on the significant points of the handouts, the operational forced inventory plan, the Forest Management Plan, pointing out that the volunteer timber sales would occur before the first opportunity for the public to voice their opinion. She emphasized the necessity for operational ground rules and management. She did not feel the proposed legislation would allow the public to know what is happening since they would not be given the opportunity to witness the ground rules and provide input. BARBARA KELLY, REPRESENTING SELF, JUNEAU, spoke against multi-national corporations having control over large areas of forest for a twenty year period. She requested that the bill be held until further deliberation and consensus is reached. If the bill is not held in Committee, Ms. Kelly recommended consideration of amendments such as: 1. A provision to place a limit on the allowable cut placed into FMA'; 2. Provisions making the contractor responsible for all the costs to the State related to administering and enforcing the FMA; 3. Requiring a cost benefit analysis be provided on the long term timber contracts to see if benefits do exist; 4. A requirement for full funding of DNR and Department of Fish and Game in order that they adequately monitor the FMA's; 5. Allowance for adjustments to be made to harvest plans to reflect inventories conducted; 6. Suggested amendments implemented in the House Resources Committee which would make the sale of the timber for fair market value which would be 7 adjusted annually by the Commissioner; and 7. Limit the amount of timber in the FMA's. CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, testified that the Constitution of the State of Alaska compels the proper and responsible development of our renewable forests. Additionally, the Legislature and the current State administration have seen fit to take concrete actions to encourage the creation of new jobs and economic activity in the State. Mr. Gates recommended that the Committee adopt SB 310 for the following reasons: 1. The legislation provides better management of the set of resources found in the State forests; 2. Provides better management of the forest products industry; 3. Provides a better chance to encourage outside investment in value-added timber processing in Alaska; 4. Provides a better chance to reduce whole log exports from Alaska; 5. Better chance to provide more effective management of spruce bark beetle infested forests; 6. Better chance to allow Alaskans to take advantage of increased demand for forest products in the Pacific Rim; and 7. Allows the State to set aside secure, long term house log, firewood, harvest or other small scale harvest areas to allow the capitalization of value added processing facilities. TOBY WHEELER, REPRESENTING SELF, JUNEAU, testified in opposition to the legislation pointing out the amount of controversy surrounding the bill. He thought that a better bill could be constructed with "more time" which could address the twenty year contracts. Mr. Wheeler urged Committee members to consider creating a Task Force to further consider the legislation. MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND GAME, reiterated the Administration's support of the legislation. Deputy Commissioner Campbell spoke to the 8 fiscal obligation of the Department of Fish and Game. Mr Campbell reported that in preparation of the fiscal note, the Department analyzed FMA's in North America. The fiscal note would include salaries for one biologist, one fish- technician and a clerk typist per FMA. The House Resources Committee has added amendments which would create greater fiscal concern. (Tape Change, HFC 94-160, Side 1). Representative Grussendorf commented on the amount of authority and responsibility placed on the Commissioner of the Department of Natural Resources. He felt there should be greater scrutiny of the contents of the contract. Mr. McKie replied that from a fish and wildlife perspective, the Department would prefer greater involvement in the process. Representative Brown questioned the zero fiscal note provided by the Department of Natural Resources. Co-Chair Larson noted that the Subcommittee would be expanded to include Representative Therriault as Chair and with members Representatives Brown, Grussendorf, Foster, Parnell and MacLean. SB 310 was HELD in Committee for further consideration. SENATE BILL 370 "An Act providing an exemption from gambling laws for gambling conducted by cruise ships for their ticketed passengers in the offshore water of the state outside of ports; defining `cruise ship'; and providing for the licensing of certain cruise ships before they can conduct gambling in the offshore water of the state." Representative Martin noted his concerns with the legislation. He asked if a three percent tax was charged to the cruise lines for gaming receipts or if they were exempt from paying that fee. DONALD STOLWORTHY, DIRECTOR, CHARITABLE GAMING DIVISION, DEPARTMENT OF REVENUE, replied that the State accesses a three percent tax on the gross income of charities that have pull tabs. The fee structure in the committee substitute is not based on a percentage of the adjustable income. It is a flat rate fee per ship based upon the size of the ship. Representative Martin pointed out the amount received would be less than anticipated. Representative Martin asked if cruise ships were subject to federal or state law when they sail into state waters. Mr. 9 Stolworthy indicated this was a matter of dispute between the state and the cruise lines. Cruise lines maintain that they are not subject to U.S. jurisdiction or state jurisdiction. The Division of Charitable Gaming maintains that the cruise boats are subject to state law when in state waters. Mr. Stolworthy elaborated that the State of Alaska and the Indian Gaming Law expounds that only activities can be conducted that are authorized under state law. The federal courts which regulate that act have taken a broader interpretation. The only time the courts have taken a restrictive interpretation was when gambling activity could adversely impact the tribe's income. The law was specifically established to benefit the tribes economically. Representative Brown clarified that the State has jurisdiction from three miles off shore and that there can be no gambling within three miles of a port of call. Representative Martin asked if the legislation would provide authority for the first time in which gambling versus gaming would be allowed. Mr. Stolworthy replied gaming is a euphemism for gambling. There are three classes of gaming/gambling: 1. Class #1 - For amusement. 2. Class #2 - Bingo & pull tabs. 3. Class #3 - Banking card games and slot machines. He said that the State of Alaska allows gambling. Representative Martin noted that one could be done in the name of "charity" and the other could be done in the name of "free enterprise". Mr. Stolworthy replied that in charitable gaming, the proceeds are dedicated to worthy causes which differs from commercial gaming. Cruise ship gambling would be strictly a commercial enterprise. JERRY RHEINWALD, REPRESENTING SELF, JUNEAU, requested the Committee consider an amendment. The issue addresses "on board promotions", and preferential mention, an advertising scheme that a lot of small merchants find objectionable. The proposed amendment would replace the current section (c) with a total ban of on board advertising promotions. The language makes it specific that the ban would be targeted to on board advertising of local merchants. THOMAS DOW, VICE PRESIDENT, PRINCESS TOURS, ANCHORAGE, referenced the letter included in the Committee members bill packet. [Copy on file]. He spoke in support of the legislation which would allow gambling aboard cruise ships 10 within Alaskan waters for ticketed cruise passengers. Cruise ships would be required to pay a fee to the State for an exemption prior to conducting gambling under the legislation. He added that this is an activity that has been included for passengers for the past twenty years and has not adversely impacted any community. The language specifically prohibits the operation of casinos within three miles of any port of call. Mr. Dow spoke in support of the amendment. Co-Chair MacLean MOVED that the version before the Committee be HCS CS SB 370 (JUD). There being NO OBJECTION, it was adopted. Representative Navarre MOVED to adopt Amendment #1 including Section (A). Representative Brown recommended deleting "in" of the title and inserting "of". There being NO OBJECTION to the title change, the amendment was adopted. Co-Chair MacLean MOVED to report HCS CS SB 370 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTIONS, it was so ordered. HCS CS SB 370 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Revenue dated 5/02/94. (Tape Change, HFC 94-160, Side 2). SENATE BILL 215 "An Act relating to and redesignating the oil and hazardous substance release response fund and to its use in the event of a disaster emergency; repealing the authority in law by which marine highway vessels may be designed and constructed to aid in oil and hazardous substance spill cleanup in state marine water using money in the oil and hazardous substance release response fund; amending requirements relating to the revision of state and regional master prevention and contingency plans; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; amending the authority to contract to provide personnel to respond to a release or threatened release of oil or a hazardous substance and to contract to conduct spill related research; reassigning responsibility for the oil and hazardous substance response corps and for the emergency response depots to the Department of Environmental Conservation, and for the operation of the state emergency response commission and its attendant responsibilities for the 11 local emergency planning commissions to the Department of Military and Veterans' Affairs; and modifying definitions of terms relating to the preceding provisions; terminating the nickel-per-barrel oil conservation surcharge; levying and collecting two new oil surcharges; and providing for the suspension and reimposition of one of the new surcharges; and providing for an effective date." Representative Therriault MOVED that the version before the Committee be work draft #8-LS110\T, Chenoweth, 5/02/94. There being NO OBJECTION, it was so ordered. Representative Therriault distributed to the Committee Amendment #4, a xerox of the House Resource version of the legislation. The amendment would delete Sections #30 & #31 and replace it with the language of Section #30 from the Resources version. Representative Therriault MOVED to adopt Amendment #1. The language would do away with the 2,500 barrel threshold, replacing it with language rolled forward from the Senate version. BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that Amendment #1 would eliminate Sections #30 & #31 in the House Finance version. Section #30 was the section which established a threshold of 2,500 barrels for the use of the Response Account and would have required a 72-hour reporting period and a verification from the Governor. Section #31 allowed the Department, for spills under 2,500 barrels, to use the remaining balance of the prevention account. He added that Amendment #4 would eliminate those two sections and would replace them with the section from the Resource's version which allows DEC to access the response account for any "threatened or actual release of any size" and must report in writing to the Governor and the Legislative Budget and Audit Committee within 120 hours of taking action. Representative Martin MOVED to amend Amendment #4 to 5 working days rather than 120 hours. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Martin. OPPOSED: Parnell, Therriault, Foster, Grussendorf, Hanley, Navarre, MacLean, Larson. Representative Hoffman was not present for the vote. The MOTION FAILED (2-8). 12 There being NO OBJECTION to adopting Amendment #4, it was adopted. Co-Chair MacLean MOVED to adopt Amendment #5 which would allow for the incorporation of above ground storage tanks. Mr. Poe reminded the Committee of the amount of money a three cent surcharge would produce. He pointed out that it would not provide enough to address either the above or below ground storage tank problems. He recommended further consideration of motor fuel taxes to address those problems. Mr. Poe stated the Department would not object to the amendment. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf, Hanley, Martin, Navarre, Parnell, Larson, MacLean. OPPOSED: Therriault. Representative Hoffman was not present for the vote. The MOTION PASSED (9-1). Representative Brown MOVED to adopt Amendment #6, #8- LS1107\C.4, Chenoweth, 4/30/94. DAN AUSTIN, STAFF, REPRESENTATIVE KAY BROWN, explained that the money in the mitigation account is automatically placed into the response fund. The amendment would return the status quo in order to receive the general fund mitigation account and then the Legislature could make an appropriation from the response fund. Mr. Poe corrected Mr. Austin's explanation, explaining that the Exxon payments would go to the prevention account, mitigation account. Both of those accounts have a mitigation account and through the front section of the budget, the money collected in the mitigation account would then be appropriated to the prevention account or to other uses. Representative Brown WITHDREW Amendment #6. Representative Brown MOVED to adopt Amendment #7 which would allow the response fund to be used for threatened releases. Mr. Poe supported the amendment. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment #8 which would require that restoration activities after a spill be paid for from the response portion of the fund and not from the 13 prevention portion of the account. Mr. Poe indicated that would be a policy call of the Legislature. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Navarre, Brown. OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson. Representative Hoffman was not present for the vote. The MOTION FAILED (3-7). Representative Brown MOVED TO WITHDRAW Amendment #9. There being NO OBJECTION, it was withdrawn. Representative Brown MOVED to adopt Amendment #10 which would delete the definition of a catastrophic oil release returning the bill to the House Resources version. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment #11 which would split the existing reserve funds between the two accounts. Mr. Poe stated that the effect of the split would be to create a $24 million dollar tax reduction over a five year period of time. REPRESENTATIVE DAVID FINKELSTEIN asked if there would be enough money for both the above and the below ground storage tanks without the amendment. Mr. Poe stated there would not. Representative Therriault added that even with the amendment, there would not be sufficient money for those concerns. Representative Therriault OBJECTED to Amendment A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown, Larson. OPPOSED: Hanley, Martin, Parnell, Therriault, Foster. The MOTION FAILED (5-6). Representative Therriault MOVED to report HCS CS SB 215 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. HCS CS SB 215 (FIN) was reported out of Committee with "no recommendations" and with a fiscal note by the Department of 14 Revenue dated 4/27/94 and zero fiscal notes by the Department of Law dated 4/27/94, the Department of Administration dated 4/27/94, the Department of Public Safety dated 4/27/94 and the Department of Environmental Conservation dated 4/27/94. (Tape Change, HFC 94-161, Side 1). SENATE BILL 46 "An Act authorizing moose farming." Co-Chair MacLean MOVED to adopt Amendment #1. There being NO OBJECTION, it was adopted. Co-Chair MacLean MOVED to adopt Amendment #2 which would address reindeer herd grazing permits. There being NO OBJECTION, it was adopted. Co-Chair MacLean MOVED to adopt Amendment #3 stating that the Commissioner "will" exempt by regulation, the farming of free ranging reindeer. There being NO OBJECTIONS, it was adopted. Representative Therriault MOVED to report HCS CS SB 46 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. HCS CS SB 46 (FIN) was reported out of Committee with "no recommendations" and with zero fiscal notes by the Department of Public Safety, the Department of Environmental Conservation dated 4/25/94, the Department of Fish and Game dated 4/25/94, and a fiscal impact note by the Department of Natural Resources dated 4/24/94. ADJOURNMENT The meeting adjourned at 5:30 P.M. HOUSE FINANCE COMMITTEE May 5, 1994 1:30 P.M. TAPE HFC 94 - 159, Side 1, #000 - end. TAPE HFC 94 - 159, Side 2, #000 - end. TAPE HFC 94 - 160, Side 1, #000 - end. TAPE HFC 94 - 160, Side 2, #000 - end. TAPE HFC 94 - 161, Side 1, #000 - #87. CALL TO ORDER 15 Co-Chair Larson called the House Finance Committee meeting to order at 1:30 P.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Foster ALSO PRESENT Representative David Finkelstein; Representative Bill Williams; McKie Campbell, Deputy Commissioner, Department of Fish and Game; Frank Rue, Director, Habitat & Restoration Division, Department of Fish and Game; Wayne Regelin, Deputy Director, Wildlife Conservation, Department of Fish and Game; Donald Stolworthy, Director, Charitable Gaming Division, Department of Revenue; Chris Gates, Director, Division of Economic Development, Department of Commerce and Economic Development; Jerry Rheinwald, Self, Juneau; Tom Dow, Vice President, Princess Tours, Anchorage; Kate Troll, United Fishermen of Alaska (UFA), Juneau; Katya Kirsch, Alaska Environmental Lobby, Juneau; Rex Blazer, Self, Fairbanks; Ron Wolf, Chief Forester, Kluckwan Forest Products; Audrey Magoen, Self, Fairbanks; Barbara Kelly, Self, Juneau; Toby Wheeler, Self, Juneau; Bob Poe, Director, Division of Administrative Services, Department of Environmental Conservation; Dan Austin, Staff, Representative Kay Brown. SUMMARY SB 45 An Act relating to persons under 21 years of age; providing for designation of `safe homes' for runaway minors; and providing for an effective date. SB 46 was reported out of Committee with "no recommendations" and with zero fiscal notes by the Department of Public Safety, the Department of Environmental Conservation dated 4/25/94, the Department of Fish and Game dated 4/25/94 and a fiscal impact note by the Department of Natural Resources dated 4/25/94. SB 310 An Act relating to the management and sale of state timber; relating to the classification of state land that would preclude harvesting of 16 timber or would designate harvesting of timber as an incompatible use; relating to the administration of forest land, proposals for state forest, and the determination of sustained yield; and providing for an effective date. SB 310 was placed into Subcommittee with Representative Therriault as Chair and with members Representatives MacLean, Grussendorf, Foster, Brown and Parnell. SB 370 An Act providing an exemption from gambling laws for gambling conducted by cruise ships for their ticketed passengers in the offshore water of the state outside of ports; defining `cruise ship'; and providing for the licensing of certain cruise ships before they can conduct gambling in the offshore water of the state. HCS CS SB 370 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Revenue dated 5/21/94. SB 215 An Act relating to and redesignating the oil and hazardous substance release response fund and to its use in the event of a disaster emergency; repealing the authority in law by which marine highway vessels may be designed and constructed to aid in oil and hazardous substance spill cleanup in state marine water using money in the oil and hazardous substance release response fund; amending requirements relating to the revision of state and regional master prevention and contingency plans; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; amending the authority to contract to provide personnel to respond to a release or threatened release of oil or a hazardous substance and to contract to conduct spill related research; reassigning responsibility for the oil and hazardous substance response corps and for the emergency response depots to the Department of Environmental Conservation, and for the operation of the state emergency response commission and its attendant responsibilities for the local emergency planning commissions to the Department of Military and Veterans' Affairs; and modifying definitions of terms relating to the preceding provisions; terminating the nickel-per-barrel oil conservation surcharge; levying and collecting two new oil surcharges; and providing for the suspension and 17 reimposition of one of the new surcharges; and providing for an effective date. HCS CS SB 215 (FIN) was reported out of Committee with "no recommendation" and with a fiscal note by the Department of Revenue dated 4/27/94 and four zero fiscal notes by the Department of Law dated 4/27/94, the Department of Administration dated 4/27/94, the Department of Public Safety dated 4/27/94 and the Department of Environmental Conservation dated 4/27/94. SENATE BILL 46 "An Act authorizing moose farming." Co-Chair Larson briefed the Committee on the previous pending MOTION to move CS SB 46 (FIN) out of Committee. Co- Chair MacLean interrupted with questions for the Department of Fish and Game: 1. Was there a surplus of caribou in the State; 2. How the legislation would affect the Federal Reindeer Act of 1937; 3. Definition of surplus. WAYNE REGELIN, DEPUTY DIRECTOR, DIVISION OF WILDLIFE CONSERVATION, DEPARTMENT OF FISH AND GAME, responded that there are three large caribou herds in Alaska at this time. Caribou herds naturally cycle through "highs" and "lows", and many would say that there is a surplus at this time. He agreed that many people in Alaska depend on the Western Arctic Caribou herd for food. The Federal Reindeer Act passed in 1937 would affect the legislation in that it restricts ownership of reindeer to the Alaska Natives. The Act also defines "reindeer" as: "Any reindeer or caribou that are under animal husbandry". Consequently, any caribou placed in captivity, automatically under federal law would become a reindeer and would be prohibited from ownership by anyone other than an Alaskan Native. Permits would only then be issued to Alaska Natives. Mr. Regelin explained that SB 46 would cause confusion within the Department of Fish and Game as hunters would want to get the caribou surplus and the Department would not be authorized to allow the issuance of permits. He added that "surplus" has not been defined to date. Co-Chair MacLean indicated that she opposed moving the bill from Committee until amendments had been made to the 18 legislation to protect Native Alaskans. Co-Chair MacLean MOVED to adopt Amendment #1, #8-LS0371\S.1, Utermohle, 5/04/94. [Copy on file]. Amendment #1 would remove all reference to "caribou". Co-Chair Larson noted that CS SB 46 would be further discussed at the following meeting. Discussion followed regarding the Open Meetings Guideline and the amount of notice necessary to bring the bill back to Committee. SB 46 was HELD in Committee. SENATE BILL 310 "An Act relating to the management and sale of state timber; relating to the classification of state land that would preclude harvesting of timber or would designate harvesting of timber as an incompatible use; relating to the administration of forest land, proposals for state forest, and the determination of sustained yield; and providing for an effective date." Co-Chair Larson placed SB 310 into Subcommittee with Representative Therriault as Chair and with members Representatives MacLean and Grussendorf. KATE TROLL, UNITED FISHERMEN OF ALASKA (UFA), JUNEAU, testified in opposition to SB 310 which would go beyond establishing the Forest Management Agreements into making substantial modifications to the State Forest Practices Act. The bill would reduce the intent to manage state and municipal forest for multiple use and would weaken the forest planning and review process, while altering the requirement for reforestation on private land. She emphasized that the changes would be substantial to the State Forest Practices Act. Furthermore, the practices would come at a time when the Board of Forestry, a Board established to resolve issues relevant to the forest resources in the State, has acknowledged that the State Forest Practices Act is working well and through a consensus negotiation states that the product does not need to be altered. Ms. Troll strongly recommended deleting all sections of SB 310 which alter the Forest Practices Act pointing out that UFA was a key player in the two years of negotiations that led to the State Forest Practices Act. She advised an additional concern of UFA was the application of the "sustained yield", Section #4, which calls for the continuation and expansion of business. She pointed out that "sustained yield" has been defined in statute as 19 "continuity of harvest over annual periods". The proposed legislation would redefine "sustained yield", to be not just "continuity", but also "expansion of business". KATYA KIRSCH, EXECUTIVE ASSISTANT, ALASKA ENVIRONMENTAL LOBBY, JUNEAU, testified in opposition to SB 310 explaining that the forest management agreements will benefit corporations more than the State. She emphasized that the State should reconsider loosing money to subsidize removal of forest lands. SB 310 mandates long-term contracts for up to 20 years, with a renewal option for another 20 years. Long-term contracts, also called Forest Management Agreements (FMA's) will make timber harvest the priority on state forest lands, elevating timber over fisheries, wildlife, subsistence, tourism and recreation values. Ms. Kirsch added that long-term timber contracts are likely to have a negative impact on Alaska's economy and natural resources: 1. Long-term contracts are unhealthy for Alaska's pocket book. 2. Long-term contracts lock out future knowledge. 3. Timber-supply problems in order to fulfill long- term contracts will occur. 4. Long-term contracts and mills may endanger Alaskan communities economically and environmentally. 5. Industry should not manage state lands. Ms. Kirsch enumerated a number of alternatives to long-term contracts. 1. Maintain current timber sale length of three to five years which would allow DNR to update contracts as social values, economic situations, and biological information change. 2. This would allow reasonable certainty that interested purchasers will have a steady supply of timber to bid on at fair market value, without locking up resources for 20 years and without locking out other interested timber purchasers. 3. Encourage locally owned, value-added forest industries. REX BLAZER, REPRESENTING SELF, FAIRBANKS, spoke in opposition to SB 310 which allows the state forestry 20 officials to sign long term contracts with timber companies. He pointed out that long term contracts have been proven unsustainable everywhere they are practiced. Mr. Blazer emphasized that the proposed legislation will weaken the Forest Practices Act due to: 1. No requirement for bonding. 2. No local hire guarantees. 3. No guarantee for value added. 4. No provision for biannual review. 5. No provision for requirements for operator paying cost of building. RON WOLF, CHIEF FORESTER, KLUCKWAN FOREST PRODUCTS, spoke in support of SB 310 which would amend Title #38 and #41 creating the establishment of Forest Management Agreements (FMA). He added that SB 310 will allow the Department of Natural Resources (DNR) to respond to forest health problems by allowing for limited emergency timber sales and the halting of serious epidemics before they become unmanageable. Mr. Wolf mentioned that main benefit of the legislation would be a reliable supply of wood for the industry to make capital investments. Mr. Wolf advised that the legislation would allow an entrance into Forest Management Agreements allowing for careful management of State forest lands and would bring positive returns to the state treasury by managing timber resources. Representative Grussendorf advised that he had received a memo from Board members from Mr. Wolf's corporation who recommended that there be no changes in the Forest Practices Act. Mr. Wolf responded that the amendments to Title #41 are largely clerical and the effect would not change the reforestation obligation to a landowner, although it would remove a confusing reference to sustained yield. (Tape Change, HFC 94-159, Side 2). AUDREY MAGOEN, REPRESENTING SELF, FAIRBANKS, spoke in opposition to the proposed legislation and provided the Committee with a set of "Flow Charts" which she drew in order to illustrate procedures between a regular commercial timber sale (as mandated by Alaska law) and the sale of timber through a Forest Management Agreement (FMA) as 21 proposed by SB 310. [Copy on file]. Ms. Magoen elaborated on the significant points of the handouts, the operational forced inventory plan, the Forest Management Plan, pointing out that the volunteer timber sales would occur before the first opportunity for the public to voice their opinion. She emphasized the necessity for operational ground rules and management. She did not feel the proposed legislation would allow the public to know what is happening since they would not be given the opportunity to witness the ground rules and provide input. BARBARA KELLY, REPRESENTING SELF, JUNEAU, spoke against multi-national corporations having control over large areas of forest for a twenty year period. She requested that the bill be held until further deliberation and consensus is reached. If the bill is not held in Committee, Ms. Kelly recommended consideration of amendments such as: 1. A provision to place a limit on the allowable cut placed into FMA'; 2. Provisions making the contractor responsible for all the costs to the State related to administering and enforcing the FMA; 3. Requiring a cost benefit analysis be provided on the long term timber contracts to see if benefits do exist; 4. A requirement for full funding of DNR and Department of Fish and Game in order that they adequately monitor the FMA's; 5. Allowance for adjustments to be made to harvest plans to reflect inventories conducted; 6. Suggested amendments implemented in the House Resources Committee which would make the sale of the timber for fair market value which would be adjusted annually by the Commissioner; and 7. Limit the amount of timber in the FMA's. CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, testified that the Constitution of the State of Alaska compels the proper and responsible development of our renewable forests. Additionally, the Legislature and the current State administration have seen fit to take concrete actions to encourage the creation of new jobs and economic activity in the State. 22 Mr. Gates recommended that the Committee adopt SB 310 for the following reasons: 1. The legislation provides better management of the set of resources found in the State forests; 2. Provides better management of the forest products industry; 3. Provides a better chance to encourage outside investment in value-added timber processing in Alaska; 4. Provides a better chance to reduce whole log exports from Alaska; 5. Better chance to provide more effective management of spruce bark beetle infested forests; 6. Better chance to allow Alaskans to take advantage of increased demand for forest products in the Pacific Rim; and 7. Allows the State to set aside secure, long term house log, firewood, harvest or other small scale harvest areas to allow the capitalization of value added processing facilities. TOBY WHEELER, REPRESENTING SELF, JUNEAU, testified in opposition to the legislation pointing out the amount of controversy surrounding the bill. He thought that a better bill could be constructed with "more time" which could address the twenty year contracts. Mr. Wheeler urged Committee members to consider creating a Task Force to further consider the legislation. MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND GAME, reiterated the Administration's support of the legislation. Deputy Commissioner Campbell spoke to the fiscal obligation of the Department of Fish and Game. Mr Campbell reported that in preparation of the fiscal note, the Department analyzed FMA's in North America. The fiscal note would include salaries for one biologist, one fish- technician and a clerk typist per FMA. The House Resources Committee has added amendments which would create greater fiscal concern. (Tape Change, HFC 94-160, Side 1). Representative Grussendorf commented on the amount of authority and responsibility placed on the Commissioner of 23 the Department of Natural Resources. He felt there should be greater scrutiny of the contents of the contract. Mr. McKie replied that from a fish and wildlife perspective, the Department would prefer greater involvement in the process. Representative Brown questioned the zero fiscal note provided by the Department of Natural Resources. Co-Chair Larson noted that the Subcommittee would be expanded to include Representative Therriault as Chair and with members Representatives Brown, Grussendorf, Foster, Parnell and MacLean. SB 310 was HELD in Committee for further consideration. SENATE BILL 370 "An Act providing an exemption from gambling laws for gambling conducted by cruise ships for their ticketed passengers in the offshore water of the state outside of ports; defining `cruise ship'; and providing for the licensing of certain cruise ships before they can conduct gambling in the offshore water of the state." Representative Martin noted his concerns with the legislation. He asked if a three percent tax was charged to the cruise lines for gaming receipts or if they were exempt from paying that fee. DONALD STOLWORTHY, DIRECTOR, CHARITABLE GAMING DIVISION, DEPARTMENT OF REVENUE, replied that the State accesses a three percent tax on the gross income of charities that have pull tabs. The fee structure in the committee substitute is not based on a percentage of the adjustable income. It is a flat rate fee per ship based upon the size of the ship. Representative Martin pointed out the amount received would be less than anticipated. Representative Martin asked if cruise ships were subject to federal or state law when they sail into state waters. Mr. Stolworthy indicated this was a matter of dispute between the state and the cruise lines. Cruise lines maintain that they are not subject to U.S. jurisdiction or state jurisdiction. The Division of Charitable Gaming maintains that the cruise boats are subject to state law when in state waters. Mr. Stolworthy elaborated that the State of Alaska and the Indian Gaming Law expounds that only activities can be conducted that are authorized under state law. The federal courts which regulate that act have taken a broader interpretation. The only time the courts have taken a 24 restrictive interpretation was when gambling activity could adversely impact the tribe's income. The law was specifically established to benefit the tribes economically. Representative Brown clarified that the State has jurisdiction from three miles off shore and that there can be no gambling within three miles of a port of call. Representative Martin asked if the legislation would provide authority for the first time in which gambling versus gaming would be allowed. Mr. Stolworthy replied gaming is a euphemism for gambling. There are three classes of gaming/gambling: 1. Class #1 - For amusement. 2. Class #2 - Bingo & pull tabs. 3. Class #3 - Banking card games and slot machines. He said that the State of Alaska allows gambling. Representative Martin noted that one could be done in the name of "charity" and the other could be done in the name of "free enterprise". Mr. Stolworthy replied that in charitable gaming, the proceeds are dedicated to worthy causes which differs from commercial gaming. Cruise ship gambling would be strictly a commercial enterprise. JERRY RHEINWALD, REPRESENTING SELF, JUNEAU, requested the Committee consider an amendment. The issue addresses "on board promotions", and preferential mention, an advertising scheme that a lot of small merchants find objectionable. The proposed amendment would replace the current section (c) with a total ban of on board advertising promotions. The language makes it specific that the ban would be targeted to on board advertising of local merchants. THOMAS DOW, VICE PRESIDENT, PRINCESS TOURS, ANCHORAGE, referenced the letter included in the Committee members bill packet. [Copy on file]. He spoke in support of the legislation which would allow gambling aboard cruise ships within Alaskan waters for ticketed cruise passengers. Cruise ships would be required to pay a fee to the State for an exemption prior to conducting gambling under the legislation. He added that this is an activity that has been included for passengers for the past twenty years and has not adversely impacted any community. The language specifically prohibits the operation of casinos within three miles of any port of call. Mr. Dow spoke in support of the amendment. Co-Chair MacLean MOVED that the version before the Committee be HCS CS SB 370 (JUD). There being NO OBJECTION, it was 25 adopted. Representative Navarre MOVED to adopt Amendment #1 including Section (A). Representative Brown recommended deleting "in" of the title and inserting "of". There being NO OBJECTION to the title change, the amendment was adopted. Co-Chair MacLean MOVED to report HCS CS SB 370 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTIONS, it was so ordered. HCS CS SB 370 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Revenue dated 5/02/94. (Tape Change, HFC 94-160, Side 2). SENATE BILL 215 "An Act relating to and redesignating the oil and hazardous substance release response fund and to its use in the event of a disaster emergency; repealing the authority in law by which marine highway vessels may be designed and constructed to aid in oil and hazardous substance spill cleanup in state marine water using money in the oil and hazardous substance release response fund; amending requirements relating to the revision of state and regional master prevention and contingency plans; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; amending the authority to contract to provide personnel to respond to a release or threatened release of oil or a hazardous substance and to contract to conduct spill related research; reassigning responsibility for the oil and hazardous substance response corps and for the emergency response depots to the Department of Environmental Conservation, and for the operation of the state emergency response commission and its attendant responsibilities for the local emergency planning commissions to the Department of Military and Veterans' Affairs; and modifying definitions of terms relating to the preceding provisions; terminating the nickel-per-barrel oil conservation surcharge; levying and collecting two new oil surcharges; and providing for the suspension and reimposition of one of the new surcharges; and providing for an effective date." Representative Therriault MOVED that the version before the Committee be work draft #8-LS110\T, Chenoweth, 5/02/94. There being NO OBJECTION, it was so ordered. 26 Representative Therriault distributed to the Committee Amendment #4, a xerox of the House Resource version of the legislation. The amendment would delete Sections #30 & #31 and replace it with the language of Section #30 from the Resources version. Representative Therriault MOVED to adopt Amendment #1. The language would do away with the 2,500 barrel threshold, replacing it with language rolled forward from the Senate version. BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that Amendment #1 would eliminate Sections #30 & #31 in the House Finance version. Section #30 was the section which established a threshold of 2,500 barrels for the use of the Response Account and would have required a 72-hour reporting period and a verification from the Governor. Section #31 allowed the Department, for spills under 2,500 barrels, to use the remaining balance of the prevention account. He added that Amendment #4 would eliminate those two sections and would replace them with the section from the Resource's version which allows DEC to access the response account for any "threatened or actual release of any size" and must report in writing to the Governor and the Legislative Budget and Audit Committee within 120 hours of taking action. Representative Martin MOVED to amend Amendment #4 to 5 working days rather than 120 hours. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Martin. OPPOSED: Parnell, Therriault, Foster, Grussendorf, Hanley, Navarre, MacLean, Larson. Representative Hoffman was not present for the vote. The MOTION FAILED (2-8). There being NO OBJECTION to adopting Amendment #4, it was adopted. Co-Chair MacLean MOVED to adopt Amendment #5 which would allow for the incorporation of above ground storage tanks. Mr. Poe reminded the Committee of the amount of money a three cent surcharge would produce. He pointed out that it would not provide enough to address either the above or below ground storage tank problems. He recommended further consideration of motor fuel taxes to address those problems. 27 Mr. Poe stated the Department would not object to the amendment. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf, Hanley, Martin, Navarre, Parnell, Larson, MacLean. OPPOSED: Therriault. Representative Hoffman was not present for the vote. The MOTION PASSED (9-1). Representative Brown MOVED to adopt Amendment #6, #8- LS1107\C.4, Chenoweth, 4/30/94. DAN AUSTIN, STAFF, REPRESENTATIVE KAY BROWN, explained that the money in the mitigation account is automatically placed into the response fund. The amendment would return the status quo in order to receive the general fund mitigation account and then the Legislature could make an appropriation from the response fund. Mr. Poe corrected Mr. Austin's explanation, explaining that the Exxon payments would go to the prevention account, mitigation account. Both of those accounts have a mitigation account and through the front section of the budget, the money collected in the mitigation account would then be appropriated to the prevention account or to other uses. Representative Brown WITHDREW Amendment #6. Representative Brown MOVED to adopt Amendment #7 which would allow the response fund to be used for threatened releases. Mr. Poe supported the amendment. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment #8 which would require that restoration activities after a spill be paid for from the response portion of the fund and not from the prevention portion of the account. Mr. Poe indicated that would be a policy call of the Legislature. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Navarre, Brown. OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson. Representative Hoffman was not present for the vote. 28 The MOTION FAILED (3-7). Representative Brown MOVED TO WITHDRAW Amendment #9. There being NO OBJECTION, it was withdrawn. Representative Brown MOVED to adopt Amendment #10 which would delete the definition of a catastrophic oil release returning the bill to the House Resources version. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment #11 which would split the existing reserve funds between the two accounts. Mr. Poe stated that the effect of the split would be to create a $24 million dollar tax reduction over a five year period of time. REPRESENTATIVE DAVID FINKELSTEIN asked if there would be enough money for both the above and the below ground storage tanks without the amendment. Mr. Poe stated there would not. Representative Therriault added that even with the amendment, there would not be sufficient money for those concerns. Representative Therriault OBJECTED to Amendment A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown, Larson. OPPOSED: Hanley, Martin, Parnell, Therriault, Foster. The MOTION FAILED (5-6). Representative Therriault MOVED to report HCS CS SB 215 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. HCS CS SB 215 (FIN) was reported out of Committee with "no recommendations" and with a fiscal note by the Department of Revenue dated 4/27/94 and zero fiscal notes by the Department of Law dated 4/27/94, the Department of Administration dated 4/27/94, the Department of Public Safety dated 4/27/94 and the Department of Environmental Conservation dated 4/27/94. (Tape Change, HFC 94-161, Side 1). SENATE BILL 46 "An Act authorizing moose farming." 29 Co-Chair MacLean MOVED to adopt Amendment #1. There being NO OBJECTION, it was adopted. Co-Chair MacLean MOVED to adopt Amendment #2 which would address reindeer herd grazing permits. There being NO OBJECTION, it was adopted. Co-Chair MacLean MOVED to adopt Amendment #3 stating that the Commissioner "will" exempt by regulation, the farming of free ranging reindeer. There being NO OBJECTIONS, it was adopted. Representative Therriault MOVED to report HCS CS SB 46 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. HCS CS SB 46 (FIN) was reported out of Committee with "no recommendations" and with zero fiscal notes by the Department of Public Safety, the Department of Environmental Conservation dated 4/25/94, the Department of Fish and Game dated 4/25/94, and a fiscal impact note by the Department of Natural Resources dated 4/24/94. ADJOURNMENT The meeting adjourned at 5:30 P.M. 30