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.