SENATE BILL NO. 87 "An Act relating to a lumber grading training program and lumber grading certificates; relating to use of lumber graded and certified by a person holding a lumber grading training program certificate; and providing for an effective date." 1:49:06 PM Co-Chair Foster explained that SB 87 was the companion bill to HB 93, sponsored by Representative Jesse Sumner. The committee heard HB 93 on April 14, 2023. SENATOR JESSE BJORKMAN, SPONSOR, introduced SB 87. The bill would allow for local lumber millers and saw millers to receive training from the Department of Natural Resources (DNR) through the University of Alaska (UA) to grade and assess the lumber and subsequently sell the lumber to the end user to build residential homes. Co-Chair Foster asked if committee members had questions. Representative Ortiz asked whether the bill addressed how an individual could become a lumber grader. He recently had a constituent call him and ask how to become a lumber grading trainer. Senator Bjorkman responded that the bill would initiate a training program. 1:51:47 PM Representative Galvin relayed that she was supportive of the bill and had already co-sponsored the House companion bill. She asked if the bill would act as a stepping stone to the next level of a grading program that would be inclusive of products that could be used for larger houses. There was a great need for housing in the more urban areas and wondered if the bill would be expanded upon. Senator Bjorkman responded that the reason the restrictions limiting locally graded lumber were in place was in correspondence to the strength testing that lumber was required to undergo by lumber grading agencies. The local lumber was not less strong, but the reason why the program was not made available for the purpose of building larger structures was for quality control to maintain a one-to-one relationship between the seller and the buyer. He thought it was smart to begin the program on a smaller scale. There was potential for it to be a stepping stone to larger projects, but it would be under the purview of statewide building codes. Representative Coulombe asked about Section 41 of the bill which stated that the certification would be valid for five years. She asked if a person would need to do the entire program again after the certification had expired or if the process could be expedited. Senator Bjorkman deferred the question to an online testifier. 1:55:15 PM JEREMY DOUSE, NORTHERN REGIONAL FORESTER, DIVISON OF FORESTRY AND FIRE PROTECTION, DEPARTMENT OF NATURAL RESOURCES (via teleconference), responded that the intent was that the individual would take the class again. The class was only one day and he thought it would be beneficial for individuals to receive the learning experience again. Additionally, the class would be free. Representative Cronk appreciated the bill and believed it was a stepping stone in creating a vibrant timber and lumber industry in the state. He thought timber was an endless resource in the state. Representative Hannan commented that she had been concerned that the program would be housed in the university but there was no information provided from the university. She was aware that the university had stated its support for the legislation in a letter, but the letter was not included in committee packets. She wanted to give Senator Bjorkman the opportunity to speak on the university's support. Senator Bjorkman deferred the question to his staff. LAURA ACHEE, STAFF, SENATOR JESSE BJORKMAN, responded that DNR had spoken with UA about creating a position that would support the instruction for the lumber grading program. The fiscal note was from DNR because it was a DNR program. The department could have chosen to conduct the training in- house or work with another vendor, but ultimately decided to collaborate with the university. Co-Chair Foster asked Mr. Douse to describe the fiscal note. Mr. Douse explained that the fiscal note from DNR [control code pQzXM] would not require any additional personnel but would require some additional travel expenses for lumber milling and grading training events. Additionally, expenses for contractual services through a reimbursable services agreement with the university would be incurred. There would also be a cost for commodities, which would cover the cost of publishing a lumber grading handbook for purposes of training. Co-Chair Foster noted that there were no amendments. He would entertain a motion to move the bill if it was the will of the committee. 2:00:45 PM Representative Tomaszewski MOVED to REPORT SB 87 out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SB 87 was REPORTED out of committee with a "do pass" recommendation and with one previously published fiscal note: FN1 (DNR).