Legislature(1995 - 1996)
04/01/1996 01:30 PM Senate JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE JUDICIARY COMMITTEE
April 1, 1996
1:30 p.m.
MEMBERS PRESENT
Senator Robin Taylor, Chairman
Senator Lyda Green, Vice-Chairman
Senator Mike Miller
Senator Al Adams
Senator Johnny Ellis
MEMBERS ABSENT
None
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 40
Relating to extension of the United States Forest Service timber
sale contract with the Ketchikan Pulp Company.
PREVIOUS SENATE COMMITTEE ACTION
SJR 40 - No previous Senate committee action.
WITNESS REGISTER
Ralph Lewis, President
Ketchikan Pulp Company
P.O. Box 6600
Ketchikan, AK 99901
POSITION STATEMENT: Supports SJR 40
Diane Mayer
Division of Governmental Coordination
Office of the Governor
P.O. Box 110030
Juneau, AK 99811-0030
POSITION STATEMENT:
John Sandor
3311 Foster Ave.
Juneau, Alaska 99801
POSITION STATEMENT: Commented on SJR 40
Bill Moran, Jr.
First National Bank
646 W 4th Ave.
Anchorage, AK
POSITION STATEMENT: Supports SJR 40
Jack Phelps
Alaska Forest Association
111 Stedman, Suite 200
Ketchikan, AK 99901
POSITION STATEMENT: Supports SJR 40
Bill Brock
McDowell Group
416 Harris St.
Juneau, AK 99801
POSITION STATEMENT: Discussed the results of a research study he
conducted on the forest products industry.
John Antonin
Southeast Regional Resource Center
210 Ferry Way, Suite 200
Juneau, AK 99801
POSITION STATEMENT: Discussed the results of a survey of timber
impacted schools and communities in Southeast Alaska.
Mayor Doug Roberts
City of Wrangell
205 Brueger St.
Wrangell, Alaska
POSITION STATEMENT: Supports SJR 40
Sol Atkinson
Metlakatla Indian Community
Metlakatla, AK
POSITION STATEMENT: Supports SJR 40
Mayor Carlton
Ketchikan Gateway Borough
344 Front Street
Ketchikan, Alaska 99901
POSITION STATEMENT: Supports SJR 40
Wayne Weihing, President
Tongass Conservation Society
P.O. Box 3377
Ketchikan, AK 99901
POSITION STATEMENT: Opposed to SJR 40
Steve Kallick
Alaska Rainforest Campaign
1016 W. 6th Ave., Suite 200
Anchorage, AK 99501
POSITION STATEMENT: Opposed to SJR 40
John Sisk
Alaska Environmental Lobby
419 6th Street
Juneau, Alaska 99801
POSITION STATEMENT: Opposed to SJR 40
Tina Lindgren
Alaska Visitors Association
3201 C Street, #403
Anchorage, AK 99501
POSITION STATEMENT: No position taken on SJR 40
Kate Tesar for Mayor Stanton
Alaska Services Group
P.O. Bx 22754
Juneau, Alaska 99802
POSITION STATEMENT: Supports SJR 40
ACTION NARRATIVE
TAPE 96-31, SIDE A
Number 001
CHAIRMAN ROBIN TAYLOR called the Judiciary Committee meeting to
order at 1:32 p.m. Also present were Senators Adams, Green, and
Miller. The matter before the committee was SJR 40.
SJR 40 EXTENSION OF KETCHIKAN PULP CO. CONTRACT
RALPH LEWIS, President of the Ketchikan Pulp Company (KPC),
introduced Ernesta Ballard, former EPA Region X Administrator and
current consultant to KPC, and Kent Nicholson, timber specialist
for KPC.
MR. LEWIS discussed his 30 year background with KPC and KPC's
history. KPC has been in operation for 41 years, and began with
the 1946 Tongass legislation that enabled the U.S. Forest Service
to provide 50 year timber sales. In 1948, Puget Sound Pulp and
Paper bid on the timber contract, which was accepted, formed a
partnership with American Viscose, and built KPC. The first pulp
was produced in 1954. KPC was then purchased by Georgia Pacific,
and is now owned by Louisiana Pacific. When the contract volume
has been met, up to 1,000 people have been employed and up to 1,500
people had direct contact with the timber. The people of Ketchikan
have supported, and still support, KPC since its inception. KPC
leases the land that houses the Annette sawmill. That lease
expires in 1999 but contains three 15 year extension options. KPC
provides the only year-round employment in Metlakatla. The
Ketchikan sawmill shut down in 1983 but because the harvested logs
were smaller, a new sawmill was constructed as the smaller logs
were more valuable as sawed logs than pulp. Approximately 15
percent of those logs are exported to Japan, the rest are used for
domestic products, primarily as building materials. Rapid
fluctuations in the domestic market and a six-week delivery
schedule to the lower 48 make that market less attractive than the
export market which is better able to absorb their own market
fluctuations. The capacity of the pulp mill is 540 tons: KPC
averages 500 tons. The product is exported to approximately 20
countries each year and is used to manufacture up to 50 different
products. KPC sells to a lot of small rayon mills worldwide. In
41 years of operation, KPC has only experienced a total of six
months of market downtime. The mill is in operation seven days per
week, 24 hours per day.
Number 179
CHAIRMAN TAYLOR asked what percentage of the harvested forest is
only fit for pulp production. MR. LEWIS replied it depends on the
amount of cedar, but estimated the amount to be between 33 and 50
percent.
CHAIRMAN TAYLOR questioned whether there is any higher value that
can be added to the low-grade timber. MR. LEWIS stated KPC
handles, including chips and the rest of the byproduct, the
equivalent of 150 million board feet (MBF), which would otherwise
go to waste. It could be exported as chips, or MDF, but MDF would
only employ about one-third of the 600 workers who work with the
byproduct.
CHAIRMAN TAYLOR asked Mr. Lewis why KPC needs the extension that is
the subject of SJR 40. MR. LEWIS replied there are eight years
left under the existing contract, and the inclination of the Forest
Service and some in Washington, D.C. is to cancel the contract; in
1988 the U.S. House actually passed a bill to cancel the contract.
KPC needs the assurance that the federal government wants the
industry to continue past the year 2004. KPC needs that assurance
to make required investments.
CHAIRMAN TAYLOR questioned what types of investments KPC is
required to make over the next few years. MR. LEWIS answered KPC
signed a consent decree that requires up to about $20 million in
expenditures of which approximately $10 million has already been
spent. That amount does not include going to ECF, or its final
goal of TCF. TCF has nothing to do with the consent decree and
includes the outfall, secondary treatment plant, and other things.
All of the environmental expenditures are not required as part of
the consent decree.
CHAIRMAN TAYLOR asked what ECF is. MR. LEWIS responded it stands
for Elementary Chlorine Free. KPC is currently working with an
Austrian outfit named Lensing. Lensing is producing dissolving
pulp in its own rayon mill in a much smaller quantity. At present,
Lensing is been unable to get a steady quality. In between going
to TCF, KPC is going to ECF, or oxygen reliquification, which will
remove about 80 percent of the chlorine from the process.
CHAIRMAN TAYLOR asked what other expenditures KPC expects to make
in the next few years. MR. LEWIS estimated KPC needs to spend a
total of $150 to $200 million in the next three to 7 years because
the mill is 41 years old and the powerhouse needs to be upgraded to
be able to burn different fuels. The powerhouse upgrade will cost
between $40 and $50 million.
CHAIRMAN TAYLOR questioned how KPC will amortize those investments
if the contract is not extended. MR. LEWIS responded KPC could not
amortize, and would have to cut back on expenditures and do only
those repairs and improvements required by law. KPC could not be
a leader in the industry. Investors will not be willing to invest
in KPC.
In summary, MR. LEWIS said he does not want to be a part of
watching something die, which is what will happen if KPC does not
get an extended contract. In 1990, when the Tongass Timber Reform
Act (TTRA) was enacted, the industry pleaded with the government to
provide a long term contract. Without such a contract, it is
likely KPC would not be operating today, because it is not likely
it would have provided enough timber for KPC, or any other pulp
mill, to operate. The Forest Service is required to meet the
current contract, and although it is only meeting about two-thirds
to three-quarters of the requirement, it is trying. KPC was down
90 days in 1993, and when APC shut down, KPC bought its wood. If
APC hadn't sold its wood or would have operated another three to
four months, KPC would have been down 130 days. The federal
government needs to make a recommitment to the industry which will
allow KPC to finish its ECF project and be a leader in the
industry. The ECF project is not part of the consent decree, KPC
has taken it on voluntarily. That project will cost KPC $35
million, and is expected to be completed by next fall.
CHAIRMAN TAYLOR asked why KPC cannot receive adequate timber by
purchasing from independent sales. MR. LEWIS responded there is
not enough volume. At present, the independent sales program is
broke. MR. NICHOLSON added the independent sales for this year
will total 97 mbf. The Forest Service has projected independent
sales of 200 mbf in 2002, 172 million in 2003, and 207 million in
2004. That volume will not sustain the industry. The Forest
Service has no long term sale scheduled for the year 2002.
MR. LEWIS explained right now, if KPC could get 192 mbf, it would
still need to purchase 40 to 50 mbf. Those logs can be purchased
from independents or from Native Corporations. Private land
contractors can export logs. Alaska is in a unique position
because primary manufacturing must occur in Alaska. Wood from
federal lands in Oregon can go to Idaho or anywhere else in the
United States. The reason that primary manufacturing was required
in Alaska was to help create an infrastructure in the state. Six
mills existed in this area at one time.
Number 348
SENATOR ELLIS referred to line 22, page 2, of SJR 40 which states
the KPC extension is critical to the environmental well being of
the Tongass National Forest timber workers. He asked for an
explanation of that statement, and to explain KPC's felony
conviction for Ward Cove and its EPA ranking among other polluters.
MR. LEWIS clarified that statement means in harvesting the Tongass,
all fiber, including the lower quality material, will be processed.
If that material was used for a chipping operation, that type of
operation could be shut down temporarily whenever the market is
down. That type of operation does not provide stable employment.
Number 373
SENATOR ELLIS noted KPC has a documented track record of
environmental violation. He asked if KPC was promising to
dramatically improve its track record on environmental issues if it
gets a contract extension and to stop commiting violations.
MR. LEWIS replied KPC has no excuse for those violations. KPC did
not purposely set out to do anything wrong, but it got caught.
During the 1980s the amount of capital slowed down, the possibility
of employee ownership was being discussed, and other things were
going on. Representative Miller from California had a bill that
passed the House to cancel the contract and shut KPC down. Living
under that kind of terrorism was difficult. KPC kept up with
changes in the laws in the 1970s, but the changes moved faster in
the 1980s. New laws were passed rapidly, therefore most companies
waited until regulations were set in stone, then sat down with EPA
to establish a consent decree to determine what environmental
requirements needed to be met. KPC is now trying to be a leader,
and is not waiting for a consent decree.
MR. LEWIS discussed the felony conviction. Ward Cove is stressed,
but to what degree no on knows. The sea life has not been
affected. In the first 20 years of operation, most of the material
went directly into Ward Cove. In the last 20 years, most of that
material goes through secondary treatment and has very little
impact on Ward Cove. When the secondary treatment plant has to be
drained and cleaned, the effluent is put back through the system to
try to recover as much of the solid material as possible. The
remainder is sent out through the outfall and is tested and
measured. According to the permit the effluent was considered a
collected solid, and once something is termed as "collected" it
cannot be discharged to the bay. KPC misinterpreted the permit,
which provides no excuse. The misdemeanor offenses pertained to an
upset in the mixing chamber, which was affected by high tides, and
overflowed.
CHAIRMAN TAYLOR asked Mr. Lewis to explain an upset. MR. LEWIS
clarified a process upset can occur when there is a mechanical
failure during manufacturing and cannot be corrected until the
machinery can be turned off. During the process upset at KPC, the
quantity that was discharged was not enough to do damage, but any
discharge is illegal. KPC viewed the situation as non-damaging so
took no action. KPC no longer addresses such situations that way,
because common sense doesn't rule, laws and regulations do.
Number 445
SENATOR ELLIS inquired whether Mr. Lewis meant to imply that an
industry would not exist at all if the long term contract is not
approved. MR. LEWIS replied any pulp mill that has a high capital
investment has a wood supply. On the East Coast, many of the wood
supply companies have tree farms on private lands but in the West,
the amount of land in private hands is not enough to sustain the
industry. If the Forest Service is not required to meet a certain
volume, it is not likely to do so. It does not make for an
attractive proposal for investors and makes competition difficult.
CHAIRMAN TAYLOR questioned why, if the free market system works so
well, other businesses have not sprung up when the APC contract in
Sitka ended three years ago.
Number 479
DIANE MAYER, Director of the Division of Governmental Coordination
in the Office of the Governor, testified. She read the following
letter stating the Administration's position on SJR 40.
The Knowles Administration recognizes the important role the
Ketchikan Pulp Company plays in the timber industry, including
employment in Ketchikan and Southeast Alaska. The
responsibility and statutory authority to extend the KPC
contract lies with the U.S. Department of Agriculture and
Congress. Our Administration is promoting sustainable,
responsible economic development of Alaska's natural resources
in Alaska. We can do it right. As KPC develops its business
plan to present to the U.S. Department of Agriculture for a
contract extension, Alaskans will be interested in KPC's
commitment to fully address the following: long term jobs for
Alaskans; the use of Alaska businesses, both in harvesting and
value added processing; provision of a solid tax base for
Ketchikan and other Southeast communities; responsible
environmental management; participation in and support of the
Tongass Land Management planning process that assures
sustainable uses of our forest; and consideration of other
forest users, including those dependent on timber production,
tourism, commercial and sport fishing, seafood processing,
mining, subsistence, and personal use. We hope the
legislature will address these important matters in its
deliberations. We look forward to the Department of
Agriculture providing Alaskans the opportunity to review
proposals regarding the contract extension. We stand ready to
work with Alaskans and KPC to achieve these goals.
Number 479
CHAIRMAN TAYLOR asked Ms. Mayer if she supports SJR 40. MS. MAYER
responded the position clearly lays out the terms for deliberation
that the Administration is looking for consideration of.
SENATOR GREEN asked for clarification. MS. MAYER noted the state
position lays out terms for consideration by the legislature in
developing and passing SJR 40. The Administration looks forward to
those types of discussions to bring closure to this important
question of contract extension.
Number 515
CHAIRMAN TAYLOR questioned whether the Governor's Office will
support the resolution contingent upon the six conditions being
met. MS. MAYER answered when dialogue occurs to satisfy the terms
addressed in the letter, and to consider the other forest users,
responsible environmental management, and support of the TLMP in
the process, the result could be support of SJR 40.
CHAIRMAN TAYLOR stated Congress will be looking both to the
Legislature and the Governor as representatives of the people of
the state on the very simple question of whether the state supports
the extension of the contract and believed an appropriate reply to
be yes or no.
MS. MAYER believed the distinguishing factor to be the simplicity
of the question versus the complexity of the question. The
conditions touch upon the complexity of the question.
Number 530
JOHN SANDOR, former regional forester, discussed his background as
a Forest Service employee and Department of Environmental
Conservation Commissioner. He gave the following testimony on his
own behalf. SJR 40 does more than extend KPC's contract: it
focusses on the need for community stability in Southeast Alaska.
There are serious unemployment and dislocation problems throughout
Southeast Alaska. SJR 40 requires an investment of $155 million in
capital to meet changing environmental quality standards and other
associated operating needs. It is reasonable to extend the KPC
contract termination date to the extent necessary to amortize this
investment. He addressed the conditions that have changed since the
long term contracts were awarded in the 1950s. World markets for
the dissolving pulp produced by the two pulp mills have
dramatically changed. Cellophane and nylon replaced rayon in many
manufactured products. Environmental controls have changed to meet
higher water and air quality standards. It has long been
recognized that it may be desirable to modify or replace one or
both long term manufacturing products to produce a more competitive
product that could better meet higher environmental quality
standards. The possibility of developing some type of fiber
product at the Sitka Pulp Mill seemed promising when that mill was
facing closure. He was disappointed that opportunity was not more
fully explored and open for public discussion. The pulp mills,
although antiquated, did achieve the objectives of their time by
strengthening the economies of many Southeast communities. They
allowed the development of a highway infrastructure on Prince of
Wales Island and benefitted the hunting and fishing opportunities.
MR. SANDOR made the following recommendations to assure community
stability in Southeast Alaska. It is essential that the
Legislature, Administration, and communities themselves be partners
with the Forest Service in all decision making processes.
Community based industries must be sustained by the national
forest; its original purpose. Forest planning and project planning
must be better coordinated to reduce appeals and lawsuits and the
need for perpetual planning. The Department of Agriculture's plan
to centralize accountability and decision making in Washington,
D.C., must be watched to ensure decision making by the Forest
Service is done at the field level. The Forest Service should
jointly work with Alaskan communities to meet specific needs of
fish and wildlife, and the Forest Service must recognize that the
Alaska Department of Fish and Game has that authority. The small
business timber sector must have a sustainable level: 100 mbf is
reasonable. Incentives should be developed to encourage secondary
and value added manufacturing of forest products in Southeast.
Congress should consider establishing a task force that would
develop recommendations to sustain communities in Southeast Alaska.
TAPE 96-31, SIDE B
Number 050
MR. SANDOR stated in summary, the proposed extension to amortize
the investments is reasonable, but it is absolutely essential that
other steps be taken to ensure that all Southeast communities
benefit from the Tongass National Forest.
BILL MORAN JR., First National Bank, testified from Ketchikan.
First National Bank is the only commercial bank headquartered in
Southeast Alaska, and only operates in Southeast Alaska. It has
about $85 million worth of direct loans in its loan portfolio and
services an additional $85 million in real estate loans for
secondary markets; Alaska Housing Finance being one. First
National has been rated as one of the two top banks in the state
for small business lending and received an outstanding rating from
the FDIC. He provided that information to demonstrate the bank's
knowledge of the Southeast Alaska market, and its responsible
corporate citizenship. The bank was incorporated in 1924, and is
knowledgeable about the impacts of closing mills in Southeast
Alaska.
Number 526
CHAIRMAN TAYLOR asked if bankers find it prudent to make loans to
KPC if it must rely on the Forest Service's independent timber sale
program to supply its timber needs. MR. MORAN responded not only
would banks be reluctant to lend in that situation, but businesses
would be reluctant to borrow if they cannot plan an investment. He
likened the depressing effect it has on the economy to Juneau's
experience with the uncertainty of the capitol move. Private
residential construction virtually stops, and a good portion of the
commercial activity hibernates, waiting to see what will happen.
If it was certain that the mill was going to close after the
contract ended in 2004, the economy would be even more seriously
depressed.
CHAIRMAN TAYLOR referred to the closure of the Wrangell mill two
years ago, and questioned whether many loan requests have been made
to start up small operations, such as saw mills. MR. MORAN replied
the bank has not had many requests, and consequently has taken a
pro-active step by sponsoring a variety of programs in an attempt
to get independent development going, but has not been successful.
Wrangell needs a primary employer with access to outside capital
and development.
CHAIRMAN TAYLOR asked Mr. Moran if he supports the contract
extension for KPC. MR. MORAN said he did. He added he believes,
in his personal and professional experience, that KPC has been a
responsible environmental citizen.
Number 491
JACK PHELPS, Alaska Forest Association, introduced Brian Brown,
Chief Logging Engineer for Silver Bay Logging, a member company,
and gave the following testimony. SJR 40 deals with the type of
issue the Alaska Forest Association would not normally take a
position on, because it does not get involved in the contract
matters of member companies. He directed his testimony to the
economic and technical issues as to why it is important for KPC to
remain a viable forest products company. This industry, due to
government policies and environmental extremism, has lost 42
percent of its workforce since 1990. Two years ago Alaska had two
pulp mills to process the huge volume of utility logs available in
the Tongass National Forest; today there is only one such mill.
The importance of KPC to Southeast Alaska's economy, and to the
forest industry in this state, cannot be overemphasized. The need
for a stable, year-round employment base in Southeast Alaska was
recognized after WWII and lead to the establishment of the long
term contracts in the 1950s. KPC is Southeast Alaska's largest
industrial employer. KPC's presence in the market helps support
the smaller mills in the region by building and maintaining
infrastructure, by purchasing power and other utilities, and by
creating downstream employment in the wood products industry and
service industry. The pulp mill provides local, value added
employment, based on the use of a local, renewable, natural
resource. KPC provides 1,000 jobs which are not only important for
the families that depend upon them, but for the entire economy of
the region. In sustaining a forest industry in any forest, it is
always easy to sell the high end logs: finding a market for the low
end timber and byproducts is another matter. The pulp mill
provides the opportunity to utilize those products here. In
summary, the Tongass National Forest is more than capable of
sustaining the last remaining pulp mill in Alaska. Furthermore,
the forest industry, as a whole, needs that mill to operate at
capacity. In a healthy forest industry, two or more mills could be
sustained.
Number 441
CHAIRMAN TAYLOR asked if he and Mr. Brown supported SJR 40. They
replied affirmatively.
BILL BROCK, analyst for the McDowell Group, discussed the results
of a research study he conducted on the forest products industry
over the past 18 months. The following information indicates what
has happened in Southeast Alaska due to declines in timber
harvesting. Between 1990 and 1994 the U.S. Forest Service data
indicates a 40 percent decrease in Tongass timber industry
employment which equates to 1700 jobs. To determine the impact of
that decrease, Southeast was divided into three separate economies:
Juneau; other urban, which includes Sitka, Wrangell, Ketchikan,
Petersburg, and Haines; and the rural economies. Juneau's economy
has experienced a seven percent annual increase between 1990 and
1994 and has gained over 1,000 jobs over the last four years in
primarily the retail and service sectors. Southeast Alaska's other
urban economy has experienced a four percent decline in employment
since 1990 for a net loss of 640 jobs. Collectively they have
experienced a 10 percent decline in real payroll since 1990 which
equates to $40 million. The mill's closure in Sitka cost 400 jobs
and $19 million in payroll. In Sitka in 1994, employment averaged
about 3,875 jobs, an approximate 10 percent decline from 1993.
Income in the community between 1993 and 1994 fell from $115
million to $100 million. Wrangell has also been hit hard by the
Tongass timber harvest decline. The closure of APC's mills cost
the community 225 jobs which equated to 20 percent of the entire
Wrangell work force. The saw mill was the community's largest
employer and largest contributor to property tax revenue.
Approximately 20 percent of city revenues came from the mill.
Rural Southeast Alaska has possibly been the hardest hit. There
has been a four percent decline in employment since 1990. Real
payroll has declined by 15 percent, almost $20 million. Personal
income has declined by four percent, and transfer payments have
increased by 16 percent between 1990 and 1993.
MR. BROCK described what is at stake if Tongass timber harvesting
decline continues. If timber declines were to force the closure of
KPC, it would cost the community of Ketchikan 700 jobs and $45
million in annual payroll, one-fifth of Ketchikan's economic base.
A total of 1,000 jobs throughout the region, including 700 in
Sitka, and 700 indirect jobs, could be lost if the mill was closed.
Other sawmills in Klawock, Metlakatla and Ketchikan would likely be
adversely impacted, as well as logging companies. In addition,
other long term economic impacts would occur. Fishing and tourism
would become the region's primary employer: both industries are
seasonal. While there has been some overall job growth in the
region, most are part-time and lower paying jobs in the service
sector industries. Continued declines in the timber harvest will
likely continue the economic fallout that the region has been
experiencing since 1990.
JOHN ANTONIN, Executive Director of the Southeast Regional Resource
Center, discussed a survey conducted by SERRC of timber impacted
schools and communities in Southeast Alaska. The survey was
completed at the request of a number of Southeast school districts
and had two purposes: to determine the impact of the reduced timber
harvest and mill closures on children and families in Southeast
Alaska; and to recommend educational programs and services
necessary to remediate the impacts. The recommendations were taken
to Alaska's congressional delegation, but have not been acted upon
to date. The Southeast REAA completely removed facilities when
logging camps moved out which was a direct cost to the school
district. The reduction in jobs in Wrangell and Prince of Wales
has had a direct effect on the number of children on the subsidized
lunch program, receiving Aid to Dependent Children funds, and other
social conditions. When a community loses an economic base,
children, communities, and schools suffer. As the state reduces
school funding, school districts will have to look to local
communities to pick up the costs. Those communities need a strong
industry.
CHAIRMAN TAYLOR asked Mr. Antonin to give Ms. Mayer a copy of the
report to be delivered to the Governor, because families, children,
and schools were omitted from the six conditions.
Number 320
DOUG ROBERTS, Mayor of Wrangell, testified that Wrangell's
unemployment rate is about 30 percent. Wrangell was proud to be a
city that manufactured goods: timber and fish products. It no
longer manufactures very much timber. He supports KPC and small
businesses that will provide jobs. He could not speak to the
contract extension, but stated his support of the industry.
Wrangell has changed from a fishing town to a timber town to a
government town. The most dramatic change is in the manufacturing
and government sectors of the economic base. In 1994 manufacturing
jobs comprised 29 percent of the available jobs, today that number
is 11.4 percent. Likewise, government jobs comprise 47.4 of the
economic base compared to 32 percent two years ago. Wrangell was
proud to be the timber capital of Alaska; now it cannot provide
25,000 board feet to operate. The state was aware Wrangell needed
that much timber last year. The timber is out there, however
Wrangell does not seem to get any of it and sawmills are closing.
Former specialized mill workers are being retrained to be computer
technicians, barbers, etc. Southeast Alaska needs mining, timber,
and fisheries. Wrangell has tried to attract small businesses but
is isolated so has been unsuccessful.
CHAIRMAN TAYLOR asked what happened to the 19 jobs at the downtown
restaurant in Wrangell. MAYOR ROBERTS answered the restaurant
closed yesterday and 20 jobs were lost. Those 20 restaurant
workers will have to be retrained and leave Wrangell. Many need
GEDs.
Number 221
SOL ATKINSON testified on behalf of the Metlakatla Indian Community
in support of SJR 40 as follows. It is time the Legislature and
Governor's Office recognized that something must be done for the
timber dependent communities in Southeast Alaska that are being
ignored in the rush to save the environment. Metlakatla supports
sound environmental policy but also supports jobs, people, and
families, and applauds this effort to move Congress to do something
to bring some stability to the economy. Metlakatla is a federally
recognized Indian tribe with a population of about 2,000 people.
It is a timber dependent community with an unemployment rate of
over 50 percent. A stable timber supply is essential to its
welfare. In the last few years, in an effort to improve its
economic situation, Metlakatla successfully established a Small
Business Administration timber sale purchase program and started a
small sawmill to provide jobs and revenues. The mill has operated
profitably for about three years and provides between 20 to 40
jobs. Metlakatla also depends on the lease of its big mill to KPC,
for 100 jobs plus the lease revenues. Metlakatla has become a
timber dependent community; its new economic program is now
threatened by lack of timber, which is why it supports SJR 40.
Under ordinary circumstances, Metlakatla would not support a system
that singles out one business for the benefit of the public's
forest. It would rather encourage the free market system so that
all timber-related businesses could compete for timber and seek the
markets for logs and timber products that would be most
economically beneficial. It does not see any alternative but to
encourage the extension of the long term contract for KPC. It has
made the capital investments that justify an assurance that it will
have a timber supply. It provides jobs and other timber operators
with markets for logs. In a perfect world, all timber operators
would compete for a steady and reasonable supply of timber from the
vast resources of the Tongass National Forest. Natural market
forces would separate the good operators from the bad, and a
stable, reliable, timber dependent economy would evolve. Operators
could plan for appropriate capital investments or planned
improvements and marketing expenses. Reasonable environmental
protections would be a cost of doing business. Under the present
conditions however, with environmental preservationists protesting
the harvest of every tree and with a Forest Service unwilling or
unable to overcome legal bureaucratic inertia, few alternatives are
left.
MR. ATKINSON continued. A few weeks ago, the head of the Forest
Service said a stable timber supply from the forests of Southeast
Alaska is impossible. One thing is certain, small independent
operators cannot count on any supply and without that fundamental
variable in the marketing equation, they must support extraordinary
measures that are essential to their survival. The extension of
the long term contract for KPC is one of those measures. The rest
of us who would like to be able to compete for timber, if it were
available, simply cannot risk losing the last strong economic force
in our industry. If the long term contract for KPC is not
extended, the last years of the timber industry in Southeast are in
sight. Metlakatla's economic history is rooted in the seafood
industry, but it does not provide the revenue Metlakatla formerly
enjoyed. Its cannery stopped production on pinks before last
season because it is no longer economical. The potential for
tourism exists, but Metlakatla has not benefitted at this time, and
needs something to depend on year-round. Metlakatla believes
Southeast can sustain the timber supply without permanent harm to
the environment and holds the most potential for long term economic
stability.
Number 111
MAYOR CARLTON, Ketchikan Gateway Borough, testified in support of
SJR 40. He represents 15,078 people, and asked committee members
to consider the proportional amount of people in opposition to SJR
40. On March 14 the Assembly approved a letter he sent to Governor
Knowles asking for: support of the amendment sponsored by Senator
Stevens to resolve the AWARTA lawsuit; protection of the compromise
timber base established by the TTRA in 1990; and, most importantly,
support of a 15 year plus extension of a revised KPC contract. To
date, he has not received a reply. The Assembly also passed a
resolution in support of Representative Young's HB 2413, turning
the Tongass over to the State. On March 20 and 21, five people
from Ketchikan travelled to Washington, D.C. to talk with Alaska's
congressional delegation, John Katz, and Dave Unger, the Associate
Chief of the U.S. Forest Service about the concerns he addressed to
Governor Knowles. A shutdown of KPC will have statewide impact.
Spouse abuse and alcohol consumption will increase, as it has in
Sitka and Wrangell, and taxes will increase. Stumpage fees help
the boroughs throughout the state. With less stumpage fees, the
Legislature will have to either raise taxes or dip into the
Permanent Fund. The Southeast Conference has a contract study on
the timber impact of all Southeast communities, which should be
completed soon. Recently the Ketchikan Gateway Borough had a
timber contract with Sealaska. The contract contained a caveat of
the $200 per thousand feet discount if any of the timber was
locally processed. Ketchikan needs help from the Governor and
Legislature on this issue. He hoped the issue does not become a
political one.
TAPE 96-32, SIDE A
Number 000
KATE TESAR read the following statement for Mayor Stanton of
Ketchikan.
I wholeheartedly support the resolution, and as you know, Mr.
Chairman, my personal life has been very much determined by
the establishment of this, the first year-round industry
within the State of Alaska. My husband and I moved to
Ketchikan 42 years ago because of his employment as a chemical
engineer with the Ketchikan Pulp Company. We raised our
family in Ketchikan, supported by one stable, well paying job.
We brought property and built a house. My husband was
promoted and our kids graduated from Ketchikan High School,
went away to college, earned their college money by working at
Ketchikan Pulp Company each summer. Our family's story, and
many like it, would not have been possible in Ketchikan
without the long term contract between KPC and the U.S. Forest
Service. The early capital investment by Puget Sound Pulp and
Timber Company and FMC would not have been made unless they
had the security promised within the contract. Year-round
jobs and the stability, which is necessary for families and
communities to survive, is as necessary today as it was when
the strategy was first developed in the 1950's, and long term
stability is as important now for KPC as it ever was. If KPC
is going to upgrade its facilities to ensure that it is a
better neighbor and to remain competitive in a world pulp
market then it needs to know that a stable timber supply will
be available in the future. The community of Ketchikan has
been involved in intensive economic development studies and
discussion during the last three years. The 2004 information
was developed with wide representation from the community.
The statistical and consensus information is readily available
from the city, the borough, or the University of Alaska
Southeast. Our conclusions were, and are, that the loss of a
fully operating pulp mill at Ward Cove, and its inter-related
sawmills and wood operations in Southeast Alaska would cause
severe economic impacts and would probably cause devastating
social consequences as well. We are already seeing evidence
of these impacts within the community, due to the fact that
there are fewer jobs now and there is considerably less money
circulating than there was just four to five years ago.
Finally Mr. Chairman, I believe we should send copies of the
adopted resolution to all the members of the U.S. Congress,
not just the leadership and our own delegation. Many members
of Congress and people in the other 49 states may not be aware
that there is little other timber available here except that
in the National Forest. I would also stress that Ketchikan
Pulp is a value-added product. KPC and its related
enterprises not only utilize the whole log, but also the trash
and scraps that otherwise just rot or burn. This is a very
efficient use of a renewable resource. Thank you very much
for allowing me to represent the citizens of Ketchikan in
voicing our support of this resolution which sets out how
essential the operation of KPC is to the continuing economic
and social wellbeing of our families and community.
Number 078
WAYNE WEIHING, President of Tongass Conservation Society, a
Southeast Alaska Conservation Council board member, a 28 year
resident of Ketchikan, and a 21 year former employee of KPC, spoke
in opposition to a 15 year extension. In 1976 and 1977 the same
tactic of threatening a mill shutdown was used, but to a different
audience. KPC is promoting economic fear and insecurity in
Ketchikan which is unfounded. He gave the following examples of
KPC's earlier attempts to promote fear. In 1973, following the
first attempts to implement basic environmental impact statement
requirements, C.L. Cloudy of the Alaska Loggers warned that
requirements would cause complete mill shutdowns and shutdowns of
the remaining sawmills in Southeast Alaska (Ketchikan Daily News,
April 19, 1973). On May 4, 1976, the Ketchikan Daily News headline
screamed KPC will close July 1, 1977. As the paper explained the
next day, the announcement wasn't news, it was part of a publicity
stunt. The paper then criticized the pulpmill for issuing false
alarms one week before EPA hearings, and shortly before employee
negotiations were to start. One editorial concluded that KPC was
crying wolf and playing with the faith of thousands of people. In
1984, the comptroller, then later president, Martin Peele claimed
if the Forest Service didn't reduce the price of timber in larger
clearcuts, they were going to pack it up and leave (Juneau Empire,
March 29, 1984). In 1992, EPA proposed much tighter controls on
pollution for KPC's pulpmill. KPC's president, Martin Peele,
claimed the new pollution controls would seriously threaten the
survival of the mill, or any mill, anywhere (Ketchikan Daily News,
April 17, 1992). On June 26, 1995, the Ketchikan Daily News
announced that KPC would close its Ward Cove sawmill for an
indefinite period, starting Friday, because it was running out of
timber sold by the U.S. Forest Service. On the same day, the
Ketchikan Daily News contained an ad paid for by KPC which offered
to sell approximately 3,000 board feet of red cedar, and 2,000
board feet of yellow cedar, during their third quarter of '95. The
decision to close the mill was a business decision driven by pulp
prices that had more than doubled in 1994 and were then near the
highest price ever. While pulp prices were exploding, the average
market for sawed timber was down about 33 percent.
MR. WEIHING discussed worker and labor issues. In 1984, KPC
terminated the labor agreement with the pulp workers and
implemented an offer that included huge wage cuts. Today the pulp
workers still don't have a contract, and are working for less wages
than they made in 1984. The workers have suffered a huge economic
hardship, while KPC made large profits. The workers' paychecks
have a direct impact on the economy, as those people live and work
in the community, and buy groceries and houses for their families.
In 1984, before the huge pay cuts were taken, a journeyman was
earning $20.05 per hour. After the six month shutdown, the workers
were offered $12 per hour. Today, after 12 years, those workers
are still not earning the $20.05 they earned in 1984. KPC has a
history of noncompliance with air and water standards, and
continues to operate in violation of their permits. KPC has a
history of corporate greed and not being responsible to the
community or the workers in the community. KPC should not be
granted a 50 year timber contracted, it is a scare tactic and
economic blackmail. KPC has used this tactic in the past and is
doing it again today. People are buying into a panic situation
that was not justified in the past, and is not justified now.
Number 171
CHAIRMAN TAYLOR asked Mr. Weihing if he believed the mill would
continue to operate in the future. MR. WEIHING replied he hopes so
and is very concerned about Ketchikan's economy, but believes the
mill needs to comply with pollution controls and provide better
contracts with its workers. As the union representative, he found
KPC would not give the workers contracts; it would bargain, but not
in good faith.
CHAIRMAN TAYLOR asked Mr. Weihing if he believed the mill could
continue to operate after there is no longer a 50 year contract.
MR. WEIHLING responded he believes it can. He suggested re-logging
some of the second growth areas. He expressed his concern about
the fear, and doom and gloom tactic being used to promote an
extended contract.
CHAIRMAN TAYLOR commented part of that concern is generated by the
fact that Sitka's mill closed over two years ago. That mill was
more modern than KPC. He questioned why no one is operating that
mill now if pulp prices are high. He noted brand new pulp mills
are being built in other countries and are operating at a profit.
Without a commitment of volume, there is no guarantee that economy
can be sustained. No one is concerned about a doom and gloom
economy over the next five or six years if a commitment is made by
the Forest Service to provide timber to sustain that economy.
Number 222
MR. WEIHING agreed it is necessary to look now at the long term,
but it is important to not be mislead by a gloom and doom scenario.
STEVE KALLICK, director of the Alaska Rainforest Campaign, a
coalition of Alaska and national conservation organizations, stated
his organization does not oppose all logging, or clearcutting on
national Forest Service lands, but supports balanced multiple use
of public lands and is looking for locally based solutions for
resource management challenges. SJR 40 is based on incorrect
assumptions which lead to an incorrect conclusion. The first
assumption is that the Forest Service has failed to make adequate
timber available to give KPC security under the current contract,
therefore the extension is necessary. If the current contract is
inadequate to provide a timber supply, how can the extension, which
takes effect in eight years, provide any more security? If the
contract itself is inadequate, the extension itself would also be
inadequate. To verify whether the terms of the contract are being
met, he called the Forest Service and was told KPC has, on hand,
approximately 175 mbf of timber at this time, which is nearly a one
year supply. KPC may want more than that, but cannot say the
contract terms are not being met. A second assumption is that
economic common sense dictates that Louisiana Pacific cannot make
this level of investment for mill improvements without a contract
extension. Essentially this extension asks the citizens to trust
the company and the government to work out a fair deal for us in
secret. A proposal to do this with other industries would be
highly criticized and rightly so. The same standards of disclosure
and public scrutiny here need to be applied to this case. We know
that Louisiana Pacific had over $3 billion is sales in 1994 and
profits of $350 million. According to the Ketchikan Daily News,
Louisiana Pacific is currently building 5 new timber mills in
Venezuela and without long term contracts, Louisiana Pacific has
converted mills in British Columbia and California to a chlorine
free, environmentally preferable process. The company clearly has
resources to invest without a long term contract extension. While
we have the value of the investments LP seeks to amortize in
Ketchikan, which is $155 million, we don't know what they make on
the existing contract each year, nor do we know the value of the
contract's remaining eight years, and we also don't know the value
of the contract extension on the open market which could be as high
as several billion dollars. It's hard to know because it is so
unique. We need to know the pros and cons of this proposal before
the cost of the investment versus the remaining eight years of the
contract or the extension can be evaluated. Before going any
further with SJR 40, we should ask LP to open their books for the
Ketchikan mill and show us some hard numbers. Finally, the entire
onslaught of the Tongass timber bill that Congress has before it is
embodied in the assumption that the only way to maintain timber
jobs in Southeast is to maintain the existing industry and to
increase the timber supply. We all know the industry and the
economy are not static and you cannot succeed by trying to stop
progress and maintain the existing industry. The only way to
maintain jobs in any industry is to modernize and innovate, but
that cannot be done if all efforts go into the protection of the
status quo. Value added products are a great improvement.
Everyone in Southeast realizes we have to make new products and add
value to the timber we cut. The key to stability will not be
provided by mandating or forcing a timber supply from the Tongass
if it's not economically, environmentally, or politically
sustainable. The current bills in Congress that attempt to do that
have run into opposition, both nationally and in Alaska. This
proposal will make it worse, unless it is handled right and many
other variables are considered. You just can't vanquish the
opposition on either side. The Sierra Club can't dominate the
industry and vice versa. Stability can only be achieved by a local
consensus. Alaskans all have to work together to establish the
level of logging and the land use that we can all support and live
with. He agreed with many of Mr. Sandor's points and believes we
need to take the time over the next eight years to consider all of
the resource needs and consider what kind of product and plants we
can have in Southeast Alaska, and to find solutions that work for
all of us so that we won't have political winds shifting and
creating instability.
Number 310
CHAIRMAN TAYLOR asked if the Alaska Rainforest Campaign sent out
fundraising letters requesting money from people and claiming the
organization did everything it could to cause the cancellation of
the APC long term contract in Sitka. MR. KALLICK answered the
Alaska Rainforest Campaign did not, and believed Senator Taylor may
have been referring to a fundraising appeal by the Sierra Club
Legal Defense Fund. He did not agree with Senator Taylor's
characterization of the letter.
JOHN SISK discussed his background, and endorsed the positions of
the Southeast Alaska Conservation Council and the Alaska
Environmental Lobby with regard to SJR 40. He shared the following
personal concerns and recommendations with regard to the contract,
economy and the Tongass National Forest. Alaska conservationists
care deeply about the people, communities and forests of Southeast.
SJR 40 is the wrong move for the Legislature to make; this is the
wrong time for the Legislature to make this kind of endorsement to
any aspect of our timber industry. We have eight years to look at
the KPC situation and need more specific information before
committing the Tongass to KPC or to anybody else through the year
2019. KPC's parent company is in the midst of a major management
change. It has had some real problems with leadership and
performance during the last few years, and it is taking action to
address those. It would be wise for Alaskans to follow LP's lead
and do our part of the job by looking down the road to determine
what kind of timber industry is most desirable in Ketchikan and in
Southeast, and then determine how to get there. To move forward
and extend the contract now would be to put the cart in front of
the horse. He suggested completing the revision of the Tongass
Land Management Plan. In May of 1996 there will be new information
and a whole round of local community round tables addressing these
very topics, among others. There will be a serious attempt to
figure out how a long term timber supply is going to balance out
with our other industries; other uses of the forest. It might be
helpful to identify a modest but significant timber supply level
that most interests can either live with or can support. That
might become a base timber supply that an investor could bank on.
Beyond that level, there may be less than consensus and increasing
risk, but the base level would be reliable. Unfortunately the
Hickel Administration advocated the 580 mbf cut levels which
polarized everyone, and tended to engender opposition to the entire
Tongass timber program, making almost every sale uncertain and
challenged, even when there might be some supply level that folks
could live with. Second, we need to clarify the landless Natives
issue and get a ballpark idea of how much Tongass land, if any, is
likely to be transferred to private Native corporation ownership
because this could become a significant component of regional
timber supply, and if it happens, will affect the sustainable cut
from the Tongass. We need to take the time to look at what
criteria should apply to our long term sustainable timber industry.
Value added will work, we can saw a much larger proportion of our
Tongass wood than we've ever been able to as a result of technology
changes, market changes, and labor cost differentials. Over the
long haul, we need to determine: whether we need as big a fiber
plant as we have now; whether it should be dissolving pulp; how to
capture the value; how to saw as much wood as possible, even if it
has to be re-manufactured; and come up with a sound strategy of
what to do with the cull and residual wood. That is likely to be
very different in the 21st century. We need to be market driven
and to look at an integrated set of sources of saw log supply. The
Tongass can't provide all of this. There will be private lands,
state lands, the whole Gulf coast is out there. Unfortunately logs
go back and forth in Dixon Entrance between here and British
Columbia; that situation needs to be ironed out. If stumpage
prices were not subsidized on national forest land, there would be
more incentive for private logs to go into sawmills and fiber and
other kinds of manufacturing. One basic criteria that
conservationists feel strongly about is that we should avoid sudden
changes that are going to displace workers and hurt communities.
That's in nobody's interest: not the environment, not the
community, not the workers. Where changes are desirable, or if it
turns out that some are unavoidable due to market conditions or
resource constraints, we need to develop sound transition plans
that support the communities. There are a lot of questions about
what the supply level should be. He agrees with Mr. Sandor's
statement that there are obligations from the national forest that
have to be met: multiple use, sustained yield, protection of fish
and wildlife, etc. It is too early to tell whether an extended
contract is going to be in the best interest of the region, or
whether it is going to be something KPC or LP ultimately decides it
wants to do. The resolution is premature.
TINA LUNDGREN, Alaska Visitors Association, stated she was not
testifying to suggest that the specific contract for KPC should be
extended, but to point out that tourism and the timber industry are
not mutually exclusive. The AVA has long recognized that Alaska's
economy is supported by a multitude of industries from petroleum to
mining, fishing, timber, and tourism. AVA recognizes that Alaska
needs a diversified economy and healthy basic industries upon which
so many of the supporting jobs rely. AVA endorses multiple use of
the forest. Timber harvesting and tourism have, and can, co-exist
within the large and diversified rich resources of the forest. In
some cases, access and visitor activities use roads, docks and
other facilities initially constructed for the timber industry.
The AVA knows timber is required for hotels and other construction,
but at the same time AVA requires wild spaces with no development,
so it is extremely aware of the need of both uses. AVA is working
with the Forest Service to identify areas where potential conflicts
may exist. AVA shares some common concerns with SJR 40. Number
one is the need for businesses to be able to plan ahead in order to
justify capital investments. Most businesses have this problem and
it's particularly true of businesses in the Tongass. Access to
public lands is the second concern as there is tremendous pressure
to further restrict access to public lands for commercial tourism
as well as for other commercial uses of all types. AVA realizes
that both tourism and the forest products industry in Alaska are
renewable, sustainable, regulated, and compatible with the
potential of the environment, if conducted in a responsible manner.
AVA looks forward to working with the timber industry, Legislature
and congressional delegation, as well as the Forest Service, to
help alleviate the uncertainties that the businesses that rely on
the forest are facing.
DICK KOOSE, Chairperson of the Ketchikan Chamber of Commerce Timber
Issues Committee, testified. The Ketchikan Chamber of Commerce
consists of approximately 400 businesses and individual members
representing over 4,000 jobs. Its members represent the three
primary industries in Ketchikan: timber, fishing and tourism. There
is no single issue of greater importance to its members than a
strong economy, and there is no greater threat to its economy than
a reduction of the timber industry in Ketchikan and Southeast
Alaska. Each year it polls members to determine where to focus its
efforts. Its number one issue continues to be to maintain a strong
timber industry. The Greater Ketchikan Chamber of Commerce
supports a 15 year extension of the KPC timber sale contract. KPC
has initiated a $200 million investment program to operate
facilities to remain competitive in the world pulp market and to
meet new and ever-changing environmental requirements. For any
business to commit to an investment of this size, it must be
reasonably assured the raw material supply will be available. The
long term timber sales contract provides that assurance. KPC's
assessed value equals 8.6 percent of the Ketchikan Borough assessed
value for 1995 or $78.9 million. KPC property taxes to the
Ketchikan Borough for 1995 amounted to $675,000. KPC's payroll,
with benefits, for 1995 was $53.6 million. KPC's total employees
in March of 1995 was 670. For each employee for a major industry
like KPC there are three additional jobs in the service and supply
sectors and the income for the indirect jobs is four times the
payroll. If KPC ceases operations in Ketchikan, other businesses
will have to close; about one-third of the jobs in the community
will disappear. KPC has been, and will continue to be, a
responsible citizen in the community. Harvesting enough timber
from the national forest lands to sustain the timber industry in
Southeast Alaska is not an environmental, conservation, or
scientific issue; it is an issue of personal philosophy and
politics. The Ketchikan Chamber of Commerce has initiated a
petition to Governor Knowles requesting his support of the KPC
contract extension. Over 1600 names have been collected in three
and one-half days of effort in Ketchikan. The Ketchikan Chamber of
Commerce supports and urges the committee's approval of SJR 40.
CHAIRMAN TAYLOR asked if there were any other witnesses signed up
to testify. There were none.
SENATOR MILLER moved the proposed committee substitute. SENATOR
ELLIS objected and asked for an explanation of the proposed
committee substitute.
CHAIRMAN TAYLOR clarified the proposed committee substitute goes
into specific detail concerning the U.S. Forest Service and the
long-term commitments made under TTRA. It actually sets a 420 mbf
cut requirement, approved by the Forest Service as Alternative P in
1992, after 12 years of TLMP hearings.
SENATOR ELLIS noted the proposed committee substitute looked like
a fax, and did not appear to be in the format used by legislative
drafters.
CHAIRMAN TAYLOR explained it is not in typical legislative drafting
format because of insufficient time.
SENATOR ELLIS asked where the proposed committee substitute
originated. CHAIRMAN TAYLOR answered it was not drafted by Legal
Services, it was drafted, in part, by staff and others who have
been circulating various ideas for some time on this issue.
SENATOR ELLIS asked who it was faxed to. CHUCK ACHBERGER,
committee aide, replied it was faxed to him this morning from Jim
Clark, an attorney.
CHAIRMAN TAYLOR asked if there was further objection to the motion
to adopt the proposed committee substitute for SJR 40. There being
no further objection, the motion carried.
SENATOR ELLIS stated he understood that testimony taken today was
by invitation only, but the committee would provide another
opportunity to take additional testimony from those not invited.
CHAIRMAN TAYLOR commented he started it off to get the first series
out of the way with invitation only testimony. He assumed anyone
who wanted to testify would show up and do so. He added the House
is scheduled to hold two days of hearings beginning tomorrow.
SENATOR ELLIS pointed out he was under the impression that today
was an invitation only hearing, and the normal course of public
testimony would occur at a different time. CHAIRMAN TAYLOR
responded he had planned to take all of the testimony he could
today and move SJR 40 on.
SENATOR ELLIS asked if today's public hearing in the Senate
Judiciary Committee was advertised as invitation only testimony.
CHAIRMAN TAYLOR said it was. SENATOR ELLIS felt that discouraged
anyone else from attending who was not on the invitation list. MR.
ACHBERGER added it was explained in the invitation that public
testimony would be taken beginning tomorrow for two days, in the
House.
SENATOR ELLIS asked how people were notified, and whether it was
posted in the Journal. MR. ACHBERGER answered he notified people
who asked to testify or called for information on the bill. He
noted the House has published its hearing schedule.
SENATOR MILLER moved SJR 40 as amended out of committee with
individual recommendations. SENATOR ELLIS objected. The motion
carried with Senators Green, Taylor, and Miller voting "yea," and
Senator Ellis voting "nay."
CHAIRMAN TAYLOR adjourned the meeting at 3:44 p.m.
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