04/22/1996 02:32 PM Senate CRA

 SENATOR TORGERSON introduced SB 322 as the next order of business,            
 and invited Senator Taylor to present an overview on the                      
 legislation.                                                                  
                                                                               
 SENATOR ROBIN TAYLOR, prime sponsor of SB 322, said timber receipts           
 have vacillated significantly over the last several years, but they           
 do provide a significant portion of the funding base for many of              
 the school districts within his district.  However, when the law              
 was amended approximately three years ago, it was amended in such             
 a way that it provides a distribution of forest receipts based on             
 a formula of average daily membership within the schools, the                 
 population factor and the number of acres within a borough.  The              
 largest number of acres and highest population is Juneau, Alaska,             
 where there has not been a timber harvest for a lengthy period of             
 time.  He said it seems that funds are being distributed based on             
 a formula that drives the majority of those into an area that has             
 no harvesting of timber and has no roads to maintain because there            
 are not roads being built as the result of havesting of timber.               
                                                                               
 Senator Taylor said SB 322 will revise the formula so as to find a            
 triggering mechanism which indicates that if a community is being             
 impacted by timber harvesting, that community should receive those            
 impact funds.  He acknowledged that the bill as it is currently               
 structured is a bit cumbersome and doesn't work as well as he would           
 have hoped.  He advised that he would look to the committee for its           
 advice and assistance in redrafting the bill so as to accomplish              
 its overall purpose.                                                          
                                                                               
 Senator Taylor believes it is an issue that needs to be revisited             
 because he doesn't think the funds are currently being equitably              
 distributed.                                                                  
                                                                               
 Number 492                                                                    
                                                                               
 SENATOR TORGERSON said he agrees with what Senator Taylor is trying           
 to do with the legislation, but he wasn't sure if it would be legal           
 according to the federal regulations on how those forest receipts             
 are divided up.  He wondered if there was a way to tie the                    
 allowable cut acreage into where the funds are distributed.                   
 SENATOR TAYLOR said he has thought about that too, but he hasn't              
 come up with a good alternative.  He said it may be that we will              
 have to look at some radius from where the timber is harvested that           
 would then impact and allow all of the communities within that                
 radius to share within that fund.                                             
                                                                               
 Number 532                                                                    
                                                                               
 JULIE PENN, representing the Alaska Environmental Lobby, said the             
 Federal Code, 16 U.S.C. 500, designating U.S. Forest Service 25               
 percent receipts, clearly prohibits Alaska from allocating those              
 receipts based on logging activity or any other criteria except for           
 the proportional share of national forest land in each borough.               
 She pointed out Juneau would lose money on this while other                   
 boroughs in Southeast would gain, and she said it sounds divisive             
 to her as a person who lives in Southeast.  She also the noted the            
 bill's sponsor statement singles out the boroughs that oppose                 
 logging, and because of that she thinks that the bill is punitive             
 in its intent.  As a member of the Alaska Environmental lobby, she            
 respectfully suggested that the committee pursue the legislation no           
 further.                                                                      
                                                                               
 Number 550                                                                    
                                                                               
 There being no further testimony on SB 322, SENATOR TORGERSON asked           
 for the pleasure of the committee.                                            
                                                                               
 SENATOR KELLY moved SB 322 be passed out of committee with                    
 individual recommendations.  Hearing no objection, it was so                  
 ordered.