Legislature(2021 - 2022)BARNES 124

04/23/2021 10:30 AM RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Uniform Rule 23(a) Waived
+= HB 98 FOREST LAND USE PLANS; TIMBER SALES TELECONFERENCED
Heard & Held
*+ HB 135 GEOTHERMAL RESOURCES TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
           HB 98-FOREST LAND USE PLANS; TIMBER SALES                                                                        
                                                                                                                                
10:35:46 AM                                                                                                                   
                                                                                                                                
CHAIR PATKOTAK announced  that the first order  of business would                                                               
be HOUSE BILL NO. 98, "An  Act relating to forest land use plans;                                                               
relating to forest land use  plan appeals; relating to negotiated                                                               
timber sales; and providing for an effective date."                                                                             
                                                                                                                                
10:36:35 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE HOPKINS, who had  previously withdrawn Amendment 4                                                               
during  the   House  Resources  Standing  Committee   meeting  on                                                               
4/19/21,  said that  he wasn't  able to  find a  way to  work the                                                               
amendment through and restated that he withdrew Amendment 4.                                                                    
                                                                                                                                
10:37:01 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE FIELDS, who had moved  to adopt Amendment 6 during                                                               
the House  Resources Standing Committee meeting  on 4/19/21, when                                                               
it was subsequently set aside,  moved again to adopt Amendment 6,                                                               
labeled 32-GH1607\A.17, Radford, 4/27/21, which read as follows:                                                                
                                                                                                                                
     Page 7, lines 17 - 18:                                                                                                     
          Delete "[TO A LOCAL MANUFACTURER OF WOOD PRODUCTS                                                                     
     OR A USER OF WOOD FIBER]"                                                                                                  
     Insert "to a local manufacturer of wood products or a                                                                      
     user of wood fiber"                                                                                                        
                                                                                                                                
10:37:03 AM                                                                                                                   
                                                                                                                                
CHAIR PATKOTAK  restated his objection from  4/19/21 for purposes                                                               
of discussion.                                                                                                                  
                                                                                                                                
REPRESENTATIVE FIELDS explained that  his amendments emerged from                                                               
a  desire to  maximize  local benefit;  should natural  resources                                                               
related to fisheries or tourism,  for example, be damaged through                                                               
timber harvesting  activities, support  for local jobs  and local                                                               
manufacturers should be  prioritized.  He said  Amendment 6 would                                                               
limit  the sale  of timber  to a  local manufacturer,  maximizing                                                               
local economic benefits.                                                                                                        
                                                                                                                                
10:38:37 AM                                                                                                                   
                                                                                                                                
TIM DABNEY,  Acting State Forester, Acting  Director, Division of                                                               
Forestry (DOF),  Department of Natural Resources  (DNR), directed                                                               
attention to  a letter from  the Alaska Forest  Association (AFA)                                                               
[included  in  the  committee  packet],  which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     In   light  of   recent  amendments   that  are   under                                                                    
     consideration  to  the  Bill regarding  limitations  on                                                                    
     exports and  local hire requirements, AFA  is concerned                                                                    
     that   the   Bill   will   have   negative   unintended                                                                    
     consequences  on the  timber  industry  and our  member                                                                    
     operators.                                                                                                                 
                                                                                                                                
MR. DABNEY  said that HB 98  designed to allow local  industry to                                                               
sell the timber harvested and to  find a market for types of wood                                                               
that  can't   be  manufactured  locally.     While  AS  38.05.118                                                               
currently gives DOF the authority  to negotiate a timber sale, it                                                               
doesn't  clearly state  that the  local business  may export  the                                                               
timber after the work has been  done to build roads and transport                                                               
the  logs.   He explained  that  local mills  aren't equipped  to                                                               
process young  growth, there is a  lack of local demand  for wood                                                               
products from small  logs, and the only market for  hemlock is in                                                               
the Pacific Northwest.                                                                                                          
                                                                                                                                
10:41:59 AM                                                                                                                   
                                                                                                                                
CHRISTOPHER ORMAN, Assistant  Attorney General, Natural Resources                                                               
Section,  Civil  Division  (Juneau),  Department  of  Law  (DOL),                                                               
explained that  Amendment 6 would  be returning to that  which is                                                               
in current statute  in AS 38.05.118.  The  problem, he explained,                                                               
is that the  timber sale provisions regarding  500,000 board feet                                                               
specified in current AS 38.05.115  would be moved to AS 38.05.118                                                               
under HB 98.                                                                                                                    
                                                                                                                                
10:44:53 AM                                                                                                                   
                                                                                                                                
CLAIR RADFORD,  Legislative Counsel, Legislative  Legal Services,                                                               
Legislative Affairs  Agency, said  that Mr. Orman  summarized the                                                               
possible effects of Amendment 6 very well.                                                                                      
                                                                                                                                
10:45:16 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE HANNAN asked Mr. Dabney  whether the sales of less                                                               
than 500,000  board feet  are the  same as  those of  hemlock and                                                               
other timber that can't be processed locally.                                                                                   
                                                                                                                                
MR. DABNEY  replied that both  AS 38.05.115 and AS  38.05.118 can                                                               
have an export component.                                                                                                       
                                                                                                                                
REPRESENTATIVE   HANNAN   spoke   of  the   protectionist   views                                                               
concerning  the benefits  of local  manufacturing and  noted that                                                               
simply selling  timber to local  manufacturers may not be  in the                                                               
best  interest of  the  state.   Of there  not  being a  domestic                                                               
market for a  certain type of timber, she asked,  "Is that reason                                                               
enough to negotiate a sale?"                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  responded that  the  lack  of a  domestic                                                               
market is  the reason  for including an  amendment to  push local                                                               
industry towards stability and job creation.                                                                                    
                                                                                                                                
10:49:05 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MCKAY  expressed that  while he sees  the benefits                                                               
of driving  local industries,  he would prefer  to "let  the free                                                               
market prevail"  because the  state needs the  revenue.   He then                                                               
asked Mr.  Dabney whether selling timber  overseas would generate                                                               
more revenue than using it for firewood.                                                                                        
                                                                                                                                
MR.  DABNEY said  that in  a competitive  bid sale,  the contract                                                               
goes to the  highest bidder; for material desirable  as an export                                                               
product,  the   out-of-state  companies  can  outbid   the  local                                                               
companies.    This  is  one  of the  reasons,  he  said,  that  a                                                               
negotiated   timber  sale   with  domestic   business  would   be                                                               
preferable.                                                                                                                     
                                                                                                                                
REPRESENTATIVE MCKAY  said that  trees are a  renewable resource,                                                               
and  more value  could  be obtained  by  selling to  out-of-state                                                               
buyers.                                                                                                                         
                                                                                                                                
MR. DABNEY replied  that balance is important, which  is why it's                                                               
important to have  multiple mechanisms for entering  into a sale.                                                               
As  far  as   trees  growing  back,  he   said,  harvested  areas                                                               
previously  populated with  old-growth  trees  now contain  young                                                               
growth, which  is a desirable  commodity overseas.  He  said that                                                               
taking  advantage of  overseas markets  and  allowing export  for                                                               
negotiated sales is the point of HB 98.                                                                                         
                                                                                                                                
10:54:26 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HANNAN asked  Mr. Dabney  to clarify  whether, if                                                               
Amendment 6 were  to be adopted, the statute would  then say that                                                               
the  sale cannot  be negotiated.    She then  asked whether  that                                                               
means  a  competitive bid  process  involving  either foreign  or                                                               
domestic companies would be possible.                                                                                           
                                                                                                                                
MR.  DABNEY  reiterated  that  if a  negotiated  timber  sale  is                                                               
disallowed,  a  competitive bid  process  could  take place,  and                                                               
foreign companies have  a competitive advantage in  being able to                                                               
outbid domestic  companies.  He  noted that a foreign  or out-of-                                                               
state purchaser would  use local equipment and  labor rather than                                                               
sending their own employees and equipment to Alaska.                                                                            
                                                                                                                                
10:56:55 AM                                                                                                                   
                                                                                                                                
CHAIR PATKOTAK withdrew his objection to Amendment 6.                                                                           
                                                                                                                                
10:57:01 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE CRONK objected.                                                                                                  
                                                                                                                                
10:57:03 AM                                                                                                                   
                                                                                                                                
A roll  call vote  was taken.   Representatives  Hannan, Hopkins,                                                               
and  Fields  voted in  favor  of  Amendment 6.    Representatives                                                               
Schrage,  Gillham, Rauscher,  Cronk,  McKay,  and Patkotak  voted                                                               
against it.   Therefore, Amendment  6 failed  to be adopted  by a                                                               
vote of 3-6.                                                                                                                    
                                                                                                                                
10:58:03 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  FIELDS  said  that   Amendment  7  would  not  be                                                               
offered.                                                                                                                        
                                                                                                                                
CHAIR PATKOTAK clarified that Representative  Fields would not be                                                               
[re]offering  Amendment  7,  which  was  labeled  32-GH1607\A.16,                                                               
Radford,  4/17/21.    [Amendment  7   -  moved  for  adoption  by                                                               
Representative  Fields   on  4/19/21,   with  an   objection  for                                                               
discussion purposes  stated by  Chair Patkotak,  and subsequently                                                               
tabled - remained tabled.]                                                                                                      
                                                                                                                                
10:58:33 AM                                                                                                                   
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
10:59:22 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  FIELDS moved  to adopt  Amendment 8,  labeled 32-                                                               
GH1607\A.15, Radford, 4/17/21, which read as follows:                                                                           
                                                                                                                                
     Page 7, following line 13:                                                                                                 
          Insert a new bill section to read:                                                                                    
       "* Sec. 6. AS 38.05.115 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
          (d)  The commissioner may negotiate a sale of                                                                         
        timber under AS 38.05.110 - 38.05.123 only to a                                                                         
    prospective    purchaser   whose    main   office    or                                                                     
     headquarters is located in the state."                                                                                     
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
CHAIR PATKOTAK objected for purposes of discussion.                                                                             
                                                                                                                                
REPRESENTATIVE FIELDS said that,  like Amendment 6, the intention                                                               
of Amendment  8 is  to support  local businesses.   He  asked Ms.                                                               
Radford to explain the differences between the two.                                                                             
                                                                                                                                
11:00:25 AM                                                                                                                   
                                                                                                                                
MS.  RADFORD  explained that  Amendment  8  would allow  the  DNR                                                               
commissioner to negotiate a timber  sale only to a purchaser with                                                               
a head office or headquarters within the state.                                                                                 
                                                                                                                                
11:00:58 AM                                                                                                                   
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
11:01:41 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE FIELDS  said that milling jobs  have declined over                                                               
the  past  30  years  due  to management  of  federal  lands  and                                                               
international  dynamics in  the  marketplace, but  that there  is                                                               
expansive  authority to  create local  jobs on  state lands.   He                                                               
said  that Alaska  has historically  had  policies regarding  in-                                                               
state hiring.                                                                                                                   
                                                                                                                                
11:03:05 AM                                                                                                                   
                                                                                                                                
CHAIR  PATKOTAK  asked  to have  someone  address  the  potential                                                               
constitutional concerns with Amendment 8.                                                                                       
                                                                                                                                
11:04:05 AM                                                                                                                   
                                                                                                                                
MS.  RADFORD said  that Amendment  8  raises some  constitutional                                                               
issues  under  the  Privileges and  Immunities  Clause,  Commerce                                                               
Clause, and  Equal Protection Clause;  she said that she  has not                                                               
done  an in-depth  analysis, but  the  Privileges and  Immunities                                                               
Clause  restrains efforts  to  discriminate against  out-of-state                                                               
citizens.                                                                                                                       
                                                                                                                                
REPRESENTATIVE FIELDS  said that the issue  of restricting hiring                                                               
to  Alaska  residents in  terms  of  state lands  and  resources,                                                               
versus private  or federal lands,  goes back decades to  when the                                                               
State   originally  tried   to   mandate   in-state  hiring   for                                                               
development on the North Slope;  the legislature gradually passed                                                               
a  series of  laws, he  said, "eventually  arriving at  an Alaska                                                               
hire  requirement  statute  called the  Zone  of  Underemployment                                                               
statute."    He  characterized  the policy  as  permissible  when                                                               
certain  economic decisions  related  to high  unemployment.   He                                                               
said  that the  current administration  was the  first one  in 30                                                               
years  to   stop  pursuing   in-state  hiring,   "departing  from                                                               
longstanding bipartisan support for Alaska hire."                                                                               
                                                                                                                                
11:07:24 AM                                                                                                                   
                                                                                                                                
MR. ORMAN  expressed his agreement with  Ms. Radford's assessment                                                               
of  which constitutional  clauses  could affect  Amendment 8  and                                                               
listed  several  specific  statutes  that would  apply  to  cases                                                               
involving  the Equal  Protection  Clause and  the Privileges  and                                                               
Immunities Clause.   He said that they key issue  when looking at                                                               
Amendment  8 is  identifying the  rational basis  for restricting                                                               
timber  sales  to only  include  businesses  with a  main  office                                                               
located inside the  state; when considering Amendment  8 in terms                                                               
of  the Equal  Protection  Clause, he  explained  that there  has                                                               
historically  been  legislative  intent language  explaining  the                                                               
rational basis.   When considering the  Privileges and Immunities                                                               
Clause, he  said, the question is,  "Does the law place  a burden                                                               
on   the  privileges   or  immunities   protected  by   the  U.S.                                                               
Constitution, and if  a burden does exist, can  the state provide                                                               
a substantial reason for the  discrimination?"  He then explained                                                               
that  the  Dormant Commerce  Clause  should  also be  considered,                                                               
citing  South-Central Timber  Development v.  Wunnicke, 467  U.S.                                                               
82, 104 S. Ct. 2237 (1984).   In response to a follow-up question                                                               
by Chair  Patkotak, Mr.  Orman clarified  that Amendment  8 would                                                               
cause redundancy in AS 38.05.                                                                                                   
                                                                                                                                
11:17:22 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  FIELDS  noted the  need  for  rational basis  and                                                               
discussed  the  tendencies  of local  companies  to  hire  local,                                                               
support local  charities, pay  into the local  tax base,  and are                                                               
attuned to the products that local people need.                                                                                 
                                                                                                                                
11:18:18 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MCKAY said  that  sometimes  business can't  find                                                               
qualified employees and  that others can't pass a drug  test.  He                                                               
characterized  Amendment 8  as  trying to  solve  a problem  that                                                               
doesn't exist and  said that DOF is tasked with  getting the most                                                               
revenue for the timber.                                                                                                         
                                                                                                                                
11:20:14 AM                                                                                                                   
                                                                                                                                
MR. DABNEY  noted that  negotiated sales  under AS  38.05.123 are                                                               
already allowed only for local  manufacturers.  He also said that                                                               
the six  factors of determination  under AS  38.05.110(c) contain                                                               
provisions for local benefits.   Regarding Representative McKay's                                                               
assertions,  he  explained  that  timber harvests  tend  to  have                                                               
predominately  local  hires in  all  aspects,  and he  said  that                                                               
maximizing  revenue  isn't the  goal  of  DOF.   While  price  is                                                               
important,  he said,  he could  foresee  a situation  in which  a                                                               
proposal with the  highest price would fail to a  proposal with a                                                               
lower price but more local benefits.                                                                                            
                                                                                                                                
11:25:29 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE RAUSCHER opined that  needed labor can't always be                                                               
supplied locally,  but that  a company with  a bottom  line won't                                                               
want to  pay for plane tickets.   He expressed that  he does want                                                               
HB 98 to pass and that he does not support Amendment 8.                                                                         
                                                                                                                                
11:27:36 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HANNAN noted  that Amendment  8 does  not specify                                                               
hiring Alaska  residents, it says  that the business needs  to be                                                               
headquartered  in Alaska  in  order to  take  part in  negotiated                                                               
sales;  there is  nothing in  Amendment 8  restricting a  company                                                               
from bringing  staff from elsewhere.   She said that most  of the                                                               
old-growth has been  harvested in the last 40 years,  and that in                                                               
southeast  Alaska the  few remaining  areas of  old-growth adjoin                                                               
university  or tribal  land.   She  said that  one  of her  prime                                                               
concerns with HB 98 overall  is the difference between negotiated                                                               
sales and competitive bid sales.   It's clear, she said, that the                                                               
goal of bid sales is to  give the contract to the highest bidder;                                                               
however,  negotiated sales  are  intended to  address local  need                                                               
and, she said, "Asking for the  business to be located here seems                                                               
like a fairly low bar."  She said  that it would be ideal for the                                                               
business  to  either be,  or  intent  to remain,  a  longstanding                                                               
member of the  community, but that it's not difficult  to start a                                                               
business in Alaska.                                                                                                             
                                                                                                                                
11:30:09 AM                                                                                                                   
                                                                                                                                
CHAIR PATKOTAK removed his objection to Amendment 8.                                                                            
                                                                                                                                
11:30:10 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE CRONK objected.                                                                                                  
                                                                                                                                
11:30:16 AM                                                                                                                   
                                                                                                                                
A roll  call vote  was taken.   Representatives  Fields, Hopkins,                                                               
and  Hannan  voted in  favor  of  Amendment 8.    Representatives                                                               
McKay,  Cronk, Rauscher,  Gillham,  Schrage,  and Patkotak  voted                                                               
against it.  Therefore, Amendment 8 failed by a vote of 3-6.                                                                    
                                                                                                                                
11:30:55 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  FIELDS moved  to adopt  Amendment 9,  labeled 32-                                                               
GH1607\A.14, Radford, 4/17/21, which read as follows:                                                                           
                                                                                                                                
     Page 7, following line 13:                                                                                                 
     Insert a new bill section to read:                                                                                         
       "* Sec. 6. AS 38.05.115 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
          (d)  A timber sale contract entered into under                                                                        
     AS 38.05.117, 38.05.118, or 38.05.123 must require the                                                                     
     purchaser to hire only resident workers."                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
11:30:58 AM                                                                                                                   
                                                                                                                                
CHAIR PATKOTAK objected for purposes of discussion.                                                                             
                                                                                                                                
REPRESENTATIVE FIELDS  pointed out  that workers have  often been                                                               
brought in  from out of  state, and  that as timber  sales become                                                               
increasingly  international,  there  becomes less  incentive  for                                                               
multinational corporations to hire local  workers.  As the timber                                                               
will be  harvested on state  lands, he said, the  legislature has                                                               
the authority to  mandate local hiring.  He recounted  a story of                                                               
a  federal  logging  job  in   which  the  purchaser  brought  in                                                               
undocumented  immigrants  from  Mexico  and  classified  them  as                                                               
independent  contractors in  order  to defraud  them of  workers'                                                               
compensation,  minimum wage,  and  insurance benefits.   He  said                                                               
that the  situation was noticed  only because one of  the workers                                                               
was killed by  a bear, largely due to  insufficient equipment and                                                               
safety measures which would have otherwise been obligatory.                                                                     
                                                                                                                                
11:33:54 AM                                                                                                                   
                                                                                                                                
MR. DABNEY  said that the  industry will not survive  much longer                                                               
if  it  is  not  provided  with  adequate  timber  and  with  the                                                               
flexibility  to export  and  that the  collapse  of the  industry                                                               
would affect  local workers.  He  opined that the problem  is the                                                               
lack  of  available  timber, not  competition  from  outside  the                                                               
state.    He  said  that  HB   98  is  intended  to  create  more                                                               
flexibility for  the next few  years, since the supply  of timber                                                               
from the  U.S. Forest Service  lands is severely  limited, young-                                                               
growth timber  has not yet  reached an amount sufficient  to feed                                                               
the industry, and DOF is  already providing the maximum amount of                                                               
timber available  on state lands.   He said that if  a company is                                                               
required  to hire  only local  workers,  the contract  may be  at                                                               
risk.  He stated that DOF opposes Amendment 9.                                                                                  
                                                                                                                                
11:36:11 AM                                                                                                                   
                                                                                                                                
MR. ORMAN said  that the same legal issues  as described earlier,                                                               
concerning  the Equal  Protection Clause  and the  Privileges and                                                               
Immunities Clause, are also issues with Amendment 9.                                                                            
                                                                                                                                
11:36:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE SCHRAGE  asked what  kind of training  is required                                                               
for the jobs in question.                                                                                                       
                                                                                                                                
MR. DABNEY said  there are multiple types of  workers involved in                                                               
the industry  and listed chainsaw,  heavy equipment,  dump truck,                                                               
and logging  truck operators.   He said that high-skill  labor is                                                               
required   for   the   mechanized  equipment,   and   noted   the                                                               
administrative staff  required for  the clerical  work.   He said                                                               
that they're living-wage jobs that are important to the economy.                                                                
                                                                                                                                
REPRESENTATIVE SCHRAGE  asked whether Amendment 9  would apply to                                                               
all staff, or  only those actively involved in  the harvesting of                                                               
the timber.                                                                                                                     
                                                                                                                                
11:39:06 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  FIELDS responded  that the  intent is  to specify                                                               
local  hires  for the  harvest  of  the  lumber, not  the  entire                                                               
company.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  SCHRAGE  noted  his  discomfort  with  the  prior                                                               
amendments  addressing  related issues  but  said  that he  could                                                               
support Amendment  9 after hearing  descriptions of  the hands-on                                                               
jobs.  He referenced Representative  Cronk's notes about the many                                                               
firefighters  who possess  the specialized  skills that  would be                                                               
transferable to the timber industry.                                                                                            
                                                                                                                                
11:39:55 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE CRONK recalled that  Southeast Alaska used to have                                                               
a  thriving  timber  industry  and  opined  that  development  of                                                               
resources is being  hampered by the federal government.   He then                                                               
characterized  Alaska as  having the  best-managed resources  and                                                               
best environmental protections in the world.                                                                                    
                                                                                                                                
11:43:06 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GILLHAM said  that he  agrees with  hiring local,                                                               
but  there are  times  when qualified  local  employees can't  be                                                               
found.                                                                                                                          
                                                                                                                                
11:43:56 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HOPKINS  expressed  that revenue  being  funneled                                                               
into the general fund is not  the only way to increase the wealth                                                               
of the state.   He characterized local hire  amendments as having                                                               
a "snowball effect" on local and regional well-being.                                                                           
                                                                                                                                
11:45:20 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  RAUSCHER  opined  that  over 90  percent  of  the                                                               
committee  members  agree  with  the  benefits  of  hiring  local                                                               
residents, but that  it should not be mandated.   He said that he                                                               
would not support Amendment 9.                                                                                                  
                                                                                                                                
11:46:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE HANNAN said that the  goal should be to create the                                                               
biggest  economic  impact  possible  when it  comes  to  resource                                                               
extraction.  She discussed the  possibility of having taxation on                                                               
income earned  in Alaska.   Noting that Amendment 9  would likely                                                               
not  be adopted,  she  said  that she  would  support it  because                                                               
hiring local workers keeps money in the local economy.                                                                          
                                                                                                                                
11:47:49 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   FIELDS  reminded   committee   members  of   the                                                               
constitutional mandate  to provide  Alaska residents  the maximum                                                               
benefit from  resource development on  state lands and  said that                                                               
one of  the most  basic benefits  is job  production.   He opined                                                               
that, without  mandates, the  state would  not achieve  the local                                                               
hire rates it needs.                                                                                                            
                                                                                                                                
11:48:11 AM                                                                                                                   
                                                                                                                                
CHAIR PATKOTAK removed his objection to Amendment 9.                                                                            
                                                                                                                                
11:48:14 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE CRONK objected.                                                                                                  
                                                                                                                                
11:48:19 AM                                                                                                                   
                                                                                                                                
A roll  call vote  was taken.   Representatives  Schrage, Hannan,                                                               
Hopkins,   and   Fields   voted   in  favor   of   Amendment   9.                                                               
Representatives  Gillham, Rauscher,  Cronk,  McKay, and  Patkotak                                                               
voted against  it.  Therefore,  Amendment 9 failed to  be adopted                                                               
by a vote of 4-5.                                                                                                               
                                                                                                                                
11:49:25 AM                                                                                                                   
                                                                                                                                
CHAIR  PATKOTAK  stated  that a  committee  substitute  would  be                                                               
drafted  to incorporate  the  amendments adopted  thus  far.   He                                                               
announced that HB 98, as amended, was held over.                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 98 DNR Response to Remaining Amendments 4.23.2021.pdf HRES 4/23/2021 10:30:00 AM
HRES 4/23/2021 1:00:00 PM
HB 98
HB 98 HRES Action on Amendments 4.19.2021.pdf HRES 4/19/2021 1:00:00 PM
HRES 4/23/2021 10:30:00 AM
HRES 4/23/2021 1:00:00 PM
HB 98
HB 98 Amendment Cronk A.24 4.19.2021.pdf HRES 4/19/2021 1:00:00 PM
HRES 4/23/2021 10:30:00 AM
HRES 4/23/2021 1:00:00 PM
HB 98
HB 98 Memo Amendment A.15 4.19.2021.pdf HRES 4/19/2021 1:00:00 PM
HRES 4/23/2021 10:30:00 AM
HRES 4/23/2021 1:00:00 PM
HB 98
HB 98 HRES Amendment Packet 1 4.19.2021.pdf HRES 4/19/2021 1:00:00 PM
HRES 4/23/2021 10:30:00 AM
HRES 4/23/2021 1:00:00 PM
HB 98
HB 135 Sponsor Statement 4.23.2021.pdf HRES 4/23/2021 10:30:00 AM
HRES 4/23/2021 1:00:00 PM
HRES 4/26/2021 1:00:00 PM
HB 135
HB 135 Sectional Analysis Version A 4.23.2021.pdf HRES 4/23/2021 10:30:00 AM
HRES 4/23/2021 1:00:00 PM
HRES 4/26/2021 1:00:00 PM
HB 135
HB 135 DNR Presentation 4.23.2021.pdf HRES 4/23/2021 10:30:00 AM
HRES 4/23/2021 1:00:00 PM
HRES 4/26/2021 1:00:00 PM
HB 135
HB 98 Letter Alaska Forest Association 4.23.2021.pdf HRES 4/23/2021 10:30:00 AM
HB 98